Exam 15: Designing and Managing Integrated Marketing Channels

It is important for the company to select their channel members carefully because to the customers, the channels are

Which of the following is the most complete and accurate description of a pure e-Business company?

In designing a marketing channel system, the marketer must understand the service output levels desired by target customers. Channels provide five service outputs. List and briefly describe each of these outputs.

Each channel alternative needs to be evaluated against economic, control, and ________ criteria.

Companies can choose from a wide variety of channels for reaching customers from sales forces to agents, distributors, dealers, direct mail, telemarketing, and the Internet.

A ________ comprises the producer, wholesaler(s), and retailers(s) acting as a unified system.

A system of partnerships and alliances that a firm creates to source, augment, and deliver its offering is called a demand chain.

You own a franchise (one location) of a national chain of quick luncheon meals. The corporate office (the franchisor) is conducting a nation-wide marketing campaign introducing a $5.00 value meal option. This $5.00 value meal option severely cuts into you operating margins. Numerous complaints to the corporate office have resulted in the corporate office taking the position that "the franchisees need to be competitive and this $5.00 meal is competitive." You disagree noting that even with an increase in store traffic, the reduction in revenue and margin produced by this value menu, will result in a net loss for your firm. What cause of channel conflict is at play here?

Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

As the channel manager at a consumer products firm, you develop a channel incentive program in which channel members receive an extra 2 percent discount on all purchases when the channel members agree to pass half of this discount along to their customers in terms of a price decline. This is an example of what type of channel power.

________ distribution consists of the manufacturer placing his goods and services in as many outlets as possible.

Channel objectives should never be stated in terms of service outputs and levels but instead stated in terms of dollar costs.

Which of the following is NOT true about integrated marketing channel system?

The main elements in the "trade-relations mix" are price policies, conditions of sale, ________, and specific services to be performed by each party.

Storage and movements functions, title functions, and communication functions are example of ________ flow of activity from the company to the customer.

Channel objectives should be stated in terms of ________ output levels.

Designing a marketing channel system involves analyzing customer needs, ________, identifying major channel alternatives, and evaluating major channel alternatives.

Coercive power is objectively observable, while legitimate, expert, and referent power are more subjective.

Wholesalers and retailers who take title to and possession of goods and are called merchants.

Lee Valley Tools manufactures and sells tools for serious woodworkers and gardeners. In addition to selling through its websites and catalogues, Lee Valley has only 15 retail outlets across Canada. Lee Valley believes that this ________ distribution strategy allows them to get the right tool to the right customer the first time around.