Exam 13: Marketing Channels

Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer.Carl is an example of a merchant wholesaler

One of the earliest,largest and most famous examples of vertical integration was the Carnegie Steel Company.The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted,the coal mines that supplied the coal,the ships that transported the iron ore and the railroads that transported the coal to the factory.Carnegie Steel has a(n)_____ channel relationship.

Generally,_____ determine what type of intermediary a manufacturer should use.

Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT:

A _____ consists of several companies acting together in a highly organized and efficient manner,while employing the same or similar techniques as a single vertically integrated company.

LoneStar Bar & Grill is a small chain of restaurants that feature marinated steaks.The marinade is so popular that LoneStar sells it at its restaurants and also sells it at Kroger supermarkets.This is an example of intensive distribution.

Vicobello is a major manufacturer of outdoor fountains that are currently popular in gardens.Even though fountains represent a product category that does not sell year round due to inclement weather,Vicobello's sales remain steady all year because it sells to wholesale distributors that stock the product.Its wholesale distributors are primarily helping to overcome a(n)_____ discrepancy.

A consumer stopped by the convenience store to buy a bag of charcoal briquettes.She only needs one bag,but the manufacturer produces millions of bags.For consumers,the convenience store overcomes a discrepancy of dimensions.

When an intermediary in the channel of distribution owns the merchandise and controls the terms of the sale,this is referred to as:

Exclusive distribution increases direct competition among retailers.

Certified Grocers Midwest,Inc. ,the Chicago-based grocery wholesale cooperative,provides all kinds of meats,cereals,canned and fresh fruits and vegetables,beauty aids,health care items,and pet products to the supermarkets in its channel.Certified Grocers is aiding consumers by overcoming:

A(n)_____ discrepancy is created when a product is produced but a consumer is not ready to purchase it.

In 1935,Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise.Their idea was to let independent operators use the same name,food,supplies,logo and even building design in exchange for a fee.In terms of the type of channel relationships established,this non-equity agreement would require a(n)_____ relationship.

_____ is distribution aimed at maximum market coverage.It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.

_____ channel relationships include non-equity agreements such as franchising and licensing,as well as equity-based joint ventures and strategic alliances.

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs).The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.When introduced to the market,the device will sell for less than $50.If,in choosing its channel,Canesta is most concerned about its lack of financial,managerial,and marketing resources to support the product's introduction,then its choice of channels will largely be influenced by:

Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires through retailers such as Sears and Walmart in addition to the exclusive dealerships it had established.The conflict that occurred at the retail level is an example of:

The Internet is quickly becoming an alternative channel for delivering services.

_____ distribution channel relationships are situations where one company or several companies acting as one perform all channel functions.

Which of the following intermediaries sell mainly to consumers?