Exam 13: Marketing Channels

Channel conflict that occurs among channel members on the same level is known as:

A retail clothing store in a small northwest Georgia community is the sole distributor of Spanx brand hosiery in the region.How does this form of market coverage benefit the retailer? How does it benefit the manufacturer?

A(n)_____ is an institution that buys goods from manufacturers,takes title to these goods,and resells them to businesses,government agencies,and/or other wholesalers or retailers.

As products move through the marketing channel,channel members provide specialization and division of labor,overcome discrepancies,and provide contact efficiency.

Which of the following is a logistical function performed by intermediaries?

The Beistle Company manufactures Halloween decorations year-round,but customer demand is concentrated only during the month of October.By maintaining inventories of the Beistle Company's products,marketing channels overcome this spatial discrepancy.

Discuss the four main areas of importance in service distribution.

Compare and contrast the marketing channels for consumer products with the channels for business and industrial products.

Which of the following manufacturers most likely uses intensive distribution?

One important reason channel members are included between producers and users is to increase contact efficiency.How do channel members increase contact efficiency? Use the following two scenarios to illustrate your answer: (1)Assume there are 2,000 business students who need to buy textbooks from eight textbook publishers.How many transactions must take place? (2)Assume the first scenario,but now one campus bookstore is acting as an intermediary.Now how many transactions must take place?

The direct channel is used more often in consumer markets than in business-to-business markets.

Redbox Movie DVD sales represent a $16 billion market,and rentals make up another $7.5 billion.Naturally,production studios would prefer consumers purchase DVDs rather than rent them.Production studios like Twentieth-Century Fox,Warner Bros,and General Electric refused to sell new releases to Redbox,a DVD vending machine company,until almost a month after new releases arrived in stores.Redbox,the ubiquitous DVD rental red kiosks found in- and outside of convenience stores,grocery stores,drugstores,fast-food restaurants,and Walmart,is cutting in on production companies' profits.These studios are tangled in lawsuits with Redbox.Sony,Paramount,and Lionsgate,on the other hand,permit distribution through Redbox,and Disney allows third-party distribution to Redbox.With more than 20,000 kiosks now in operation,Redbox ranks fifth in DVD rental revenues,which is impressive considering the rental fee is only $1.00.But Blockbuster is trying to steal vending market share by allowing NCR Corporation,known for ATM machines,to license its name to place Blockbuster Express kiosks in similar types of locations. -Refer to Redbox.Redbox offers DVDs from several production studios,such as Disney,Sony,and Paramount.Consumers just have to rent from Redbox instead of obtaining the DVD from the various production studios if they want a children's movie from Disney and an action movie from Paramount.Thus,one kiosk provides _____ for both consumers and the production studios.

R.H.Kurt & Son,Inc. ,distributes rifles for both hunting and target shooting,rifle barrels,triggers,cleaning equipment,and reloading equipment to sporting equipment retailers and many large discount stores.It carries products from 41 different manufacturers.The manufacturers whose products it carries are known for producing superior products and are leaders in their industries.In addition,Kurt is able to repair damaged rifles through its gunsmith service,which is available to all of its retailers. -Refer to R.H.Kurt.Given the nature of the products carried by Kurt,what level of distribution intensity would be most appropriate?

Metallurgical Designs makes gold and silver charms for necklaces and bracelets.It markets its charms to a few retailers in any one region and promotes them intensively to those retailers.This is an example of intensive distribution.

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 the life cycle of the device,then its choice of channels will largely be influenced by:

The major characteristic that is used to differentiate among types of intermediaries is whether they:

Name and briefly describe the three levels of distribution intensity.Give examples of two products that logically would be distributed at each level of intensity.

Channel conflict:

W.W.Grainger,Inc. ,is one of the world's largest business-to-business distributors of equipment,component parts,and supplies in the United States and Canada.It has ownership title to over 220,000 products,which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers.W.W.Grainger is an example of a(n):

R.H.Kurt & Son,Inc. ,distributes rifles for both hunting and target shooting,rifle barrels,triggers,cleaning equipment,and reloading equipment to sporting equipment retailers and many large discount stores.It carries products from 41 different manufacturers.The manufacturers whose products it carries are known for producing superior products and are leaders in their industries.In addition,Kurt is able to repair damaged rifles through its gunsmith service,which is available to all of its retailers. -Refer to R.H.Kurt.Customers at retail stores only want one rifle or one scope.They do not want to buy in the quantities the manufacturers need to sell.This _____ is overcome by the marketing channels.