Exam 15: Designing and Managing Integrated Marketing Channels

Your firm sells industrial cleaning products and services costing between $2000 and $5000. The cost per transaction has been estimated as $500 (using field sales people), $200 (using distributors), $50 (using telesales), and $10 (using the Internet). This demonstrates that each channel alternative needs to be evaluated against ________ criteria.

One of the major causes of channel conflict is goal incompatibility between the manufacturer and the channel members.

Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to ________ coverage and sales.

E-commerce means that the company or site offers to transact or facilitate the selling of products and services online.

Intensive distribution consists of the manufacturer placing the goods or services in as many outlets as possible.

One of the chief roles of marketing channels is to convert potential buyers into profitable

A winery in British Columbia is developing a channel strategy to make their wines available across the country. What elements in the "trade-relations mix" between producers and channel members should they consider?

________ are companies that have launched a Web site without any previous existence as a firm.

In adding e-commerce, an existing company need not worry about backlash from retailers, brokers, agents, or other intermediaries.

Intermediaries normally achieve ________ in making goods widely available and accessible to target markets. Through their contact, experience, specialization, and scale of operation, intermediaries usually offer the firm more than it can achieve on its own.

In one type of contractual VMS, retailers take the initiative and organize a new business entity to carry on wholesaling and possibly some production.

________ means that the company or site offers to transact or facilitate the selling of products or services online.

Firms will try to align customers and channels to maximize demand at the lowest overall cost.

Companies need not plan and implement careful training programs for their intermediaries.

Designing a marketing channel involves analyzing customer needs, establishing channel objectives, and identifying cost saving channels, identifying key channel partners, and evaluating all alternatives.

Exclusive distribution involves the use of more than a few but less than all of the intermediaries that are willing to carry your product.

The emergence of rental car counters, hair salons, banks, and dry cleaners found in such stores as Walmart, grocery retailers, and others is an example of ________ marketing systems.

Demand chain planning yields several insights for manufacturers who follow this view of the supply chain. Explain what these insights are and how companies can use them to their best advantage.

A vertical marketing system comprises the producer, wholesaler(s), and retailer(s) acting in their own interests.

A ________ strategy involves the manufacturer using advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it.