Question 1

Advanced supply-distributor arrangements for administered vertical marketing systems do not rely on distribution programming.

Accepted Answer

A) True 
 B)False

Question 2

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

Accepted Answer

A)  finding and developing new intermediaries 
B)  using a few existing intermediaries 
C)  forming partnerships with the market leader 
D)  creating a special channel 
E)  forming partnerships with other firms 
A)  finding and developing new intermediaries 
B)  using a few existing intermediaries 
C)  forming partnerships with the market leader 
D)  creating a special channel 
E)  forming partnerships with other firms

Question 3

Which of the following entities is present in a zero-level marketing channel?

Accepted Answer

A)  consumers 
B)  retailers 
C)  brokers 
D)  jobbers 
E)  wholesalers 
A)  consumers 
B)  retailers 
C)  brokers 
D)  jobbers 
E)  wholesalers

Question 4

A(n)________ includes the producer, wholesaler(s), and retailer(s)acting as a unified system.

Accepted Answer

A)  parallel marketing channel 
B)  vertical marketing system 
C)  extensive marketing channel 
D)  internal marketing system 
E)  conventional marketing channel 
A)  parallel marketing channel 
B)  vertical marketing system 
C)  extensive marketing channel 
D)  internal marketing system 
E)  conventional marketing channel

Question 5

Sweet Treats is a startup confectionery manufacturer that sells chocolates, boiled sweets, toffees, marshmallows, jelly candies, and so on. Should the firm adopt a push or a pull strategy? Explain your answer.

Accepted Answer

Considering that Sweet Treats

Question 6

Vertical marketing systems achieve economies through size, bargaining power, and elimination of duplicated services.

Accepted Answer

A) True 
 B)False

Question 7

All functions in a marketing channel use scarce resources and can be shifted among channel members.

Accepted Answer

A) True 
 B)False

Question 8

Early buyers might be willing to pay for high-value-added channels, but later buyers will switch to lower-cost channels.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an example of a zero-level channel?

Accepted Answer

A)  A company takes online orders from customers and ships the products to them. 
B)  An organization uses a combination of direct salespeople and sales agencies to increase sales. 
C)  A company sells its products through wholesalers and retailers. 
D)  A company sells its products through chains of supermarkets and other large sellers. 
E)  A large company forms alliances with smaller companies to increase sales coverage. 
A)  A company takes online orders from customers and ships the products to them. 
B)  An organization uses a combination of direct salespeople and sales agencies to increase sales. 
C)  A company sells its products through wholesalers and retailers. 
D)  A company sells its products through chains of supermarkets and other large sellers. 
E)  A large company forms alliances with smaller companies to increase sales coverage.

Question 10

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

Accepted Answer

A)  Coercive 
B)  Reward 
C)  Legitimate 
D)  Expert 
E)  Referent 
A)  Coercive 
B)  Reward 
C)  Legitimate 
D)  Expert 
E)  Referent

Question 11

What is a vertical marketing system (VMS)? What are the various types VMSs?

Accepted Answer

A vertical marketing system includes the

Question 12

eBay Inc. is an online auction and shopping company. Procter & Gamble is an American multinational corporation that manufactures a wide range of consumer goods. Both companies sell their products online. How are these companies different from a marketing channel perspective?

Accepted Answer

eBay is a pure-click company whereas Pro

Question 13

Atburex is a furniture manufacturing company in the United States. The company provides a sixty day credit period and EMI options to customers and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

Accepted Answer

A)  good service backup 
B)  large product variety 
C)  spatial convenience 
D)  large lot size 
E)  short waiting time 
A)  good service backup 
B)  large product variety 
C)  spatial convenience 
D)  large lot size 
E)  short waiting time

Question 14

When is a pull strategy appropriate?

Accepted Answer

A)  when there is low brand loyalty 
B)  when consumers are able to perceive differences between brands 
C)  when brand choice is made in the store 
D)  when it is a low involvement purchase 
E)  when the product is an impulse item 
A)  when there is low brand loyalty 
B)  when consumers are able to perceive differences between brands 
C)  when brand choice is made in the store 
D)  when it is a low involvement purchase 
E)  when the product is an impulse item

Question 15

Orion Airlines is an American airline that provides domestic and international air transport services. Explain the five service outputs provided by marketing channels with reference to Orion.

Accepted Answer

Lot size-Customers may be allowed to boo

Question 16

Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners.

Accepted Answer

The company is using a zero-le

Question 17

Multichannel conflicts are common when the members of one channel get a lower price based on larger-volume purchases.

Accepted Answer

A) True 
 B)False

Question 18

The first step in global channel planning is to get close to customers.

Accepted Answer

A) True 
 B)False

Question 19

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

Accepted Answer

A)  hybrid 
B)  pull 
C)  personalized 
D)  vertical 
E)  internal 
A)  hybrid 
B)  pull 
C)  personalized 
D)  vertical 
E)  internal

Question 20

What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?

Accepted Answer

A)  Elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system. 
B)  A VMS has many intermediaries whereas a conventional marketing channel has a limited number of intermediaries. 
C)  A VMS is characterized by an independent producer whereas a conventional marketing channel is characterized by multiple producers. 
D)  A conventional marketing channel has elements such as retailers and wholesalers whereas these elements are not present in a VMS. 
E)  Producers have complete control over the other members in a conventional marketing channel whereas this control is minimal in a VMS. 
A)  Elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system. 
B)  A VMS has many intermediaries whereas a conventional marketing channel has a limited number of intermediaries. 
C)  A VMS is characterized by an independent producer whereas a conventional marketing channel is characterized by multiple producers. 
D)  A conventional marketing channel has elements such as retailers and wholesalers whereas these elements are not present in a VMS. 
E)  Producers have complete control over the other members in a conventional marketing channel whereas this control is minimal in a VMS.

Exam 15: Designing and Managing Integrated Marketing Channels

Advanced supply-distributor arrangements for administered vertical marketing systems do not rely on distribution programming.

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

Which of the following entities is present in a zero-level marketing channel?

A(n)________ includes the producer, wholesaler(s), and retailer(s)acting as a unified system.

Sweet Treats is a startup confectionery manufacturer that sells chocolates, boiled sweets, toffees, marshmallows, jelly candies, and so on. Should the firm adopt a push or a pull strategy? Explain your answer.

Vertical marketing systems achieve economies through size, bargaining power, and elimination of duplicated services.

All functions in a marketing channel use scarce resources and can be shifted among channel members.

Early buyers might be willing to pay for high-value-added channels, but later buyers will switch to lower-cost channels.

Which of the following is an example of a zero-level channel?

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

What is a vertical marketing system (VMS)? What are the various types VMSs?

eBay Inc. is an online auction and shopping company. Procter & Gamble is an American multinational corporation that manufactures a wide range of consumer goods. Both companies sell their products online. How are these companies different from a marketing channel perspective?

Atburex is a furniture manufacturing company in the United States. The company provides a sixty day credit period and EMI options to customers and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

When is a pull strategy appropriate?

Orion Airlines is an American airline that provides domestic and international air transport services. Explain the five service outputs provided by marketing channels with reference to Orion.

Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners.

Multichannel conflicts are common when the members of one channel get a lower price based on larger-volume purchases.

The first step in global channel planning is to get close to customers.

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Market Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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