Exam 12: Marketing Channels and Supply Chain Management

A wholesaler-sponsored voluntary chain allows retailers to save on advertising costs.

What type of marketing channel conflict can result when identically branded products are carried in competing retail pharmacies, discount houses, department stores, convenience stores, and mail-order houses?

The management at Vision, a company that specializes in high-end eyewear, was dissatisfied with the performance of the marketing intermediaries' in promoting their products. They decided to sell their products only through standalone, exclusive boutiques which are owned and maintained by Vision. What type of integration is this an example of?

The first thing to do in selecting a marketing channel is to determine which type of channel will best meet both the seller's objectives and the distribution needs of customers.

Nor-for-profit organizations tend to distribute their products through long, multi-level channels using wholesalers as intermediaries.

Which of the following are NOT physical distribution elements?

Business users prefer to deal directly with the manufacturer when purchasing most products, except routine supplies and other small items.

Service firms market primarily through short channels because they sell intangibles.

What is a vertical marketing system? Distinguish between forward integration and backward integration.

Warehouses are normally classified as either storage or distribution facilities. Storage is used for long-term inventory balancing, and distribution warehouses are used for sorting, assembling, and distributing goods as quickly as possible.

The outsourcing of distribution functions as a way of cutting costs is becoming more common for Canadian and foreign companies. What are the outsourcing specialists who contract to handle distribution called?

Tandy Corporation has its own distribution network that transports its products to its own retail stores. This is an example of a corporate marketing system.

What are reverse channels? Why are they necessary?

An intensive distribution strategy suits items with narrow appeal across limited, well-defined groups of customers.

What results from business customers being more geographically concentrated and fewer in number than individual consumers?

Product recalls and warranty repairs are examples of reverse channel marketing.

Products with wide consumer appeal are candidates for intensive distribution, which uses all available distribution channels.

Who are marketing intermediaries?

Sherwin-Williams Paint Company sells the paint it manufactures through its company-owned retail paint stores. What type of marketing system is the company's marketing channel?

Lakeview Industries contracts with Marine Motor Distributors to carry its newly patented outboard engine. In exchange for exclusive dealership rights, Marine Motor has agreed to carry the full line of nautical clothing accessories offered by Lakeview. What term best describes this type of arrangement?