Exam 11: Marketing Channels

In a ________, two or more companies at one level join together to follow a new marketing opportunity. franchise corporate VMS horizontal marketing system multichannel distribution system conventional distribution channel

How can a firm benefit from participating in a horizontal marketing system?

Producers benefit from using intermediaries because they ________. offer greater efficiency in making goods available to target markets bring a fresh point of view to strategy development eliminate risk are generally backlogged with orders refuse to store products for longer than a few days

Channel conflict can ________ different levels of the same channel or ________ firms at the same level of the channel. overlook; include be between; among contractualize; corporatize overcome; eliminate damage; bring together

Because wholesalers buy mostly from producers and sell mostly to retailers, many of the largest and most important wholesalers are unknown to most final consumers.

Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners. short-term commitments long-term commitments major problems financial losses disagreements

How can discount stores sell merchandise at lower prices?

Imaginative distribution systems can be used to gain a competitive advantage.

Steve's Physco Skates sells its products to Walmart, which then sells them to consumers.This is an example of a(n) ________. direct marketing channel producer channel indirect marketing channel retailer channel corporate vertical marketing system

A broker brings buyers and sellers together and assists in negotiation.

Tiffany & Co jewelry can only be found in a limited number of intermediaries.This is an example of ________. exclusive distribution intensive distribution quality distribution high-end distribution independent distribution

A representative of a seller who does not take title to goods is a(n) _______. retailer agent broker manufacturer rack jobber

The Schticky is a reusable lint roller that is sold via television direct response communications.The company that markets the Schticky receives the orders and then arranges to have the Schticky shipped directly to the customer from the supplier.This is an example of __________. drop shipping wholesaling to consumers brokering disintermediation rack jobs

Department stores carry narrow product lines with deep assortments within those lines.

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

Hybrid marketing systems are also called ________. dual distribution systems multichannel distribution systems administered franchises horizontal multichannel systems contractual marketing systems

Which type of product might require a more direct marketing channel to avoid delays and too much handling? lower-priced products perishable products high-priced products products in their maturity stage products in their decline stage

Compare and contrast specialty stores and convenience stores.

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. reduction-inventory management just-in-time logistics limited inventory logistics supply chain management economic order quantity

In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. depth complexity involvement length width