Exam 13: Marketing Channels

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

A _____ is a business structure of interdependent organizations that are involved in the process of making a product or service available for use or consumption by end customers or business users.

Marketing channels can achieve economies of scale through:

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:

Which of the following types of distribution channel relationships is considered to be temporary?

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

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 Kroger supermarkets.This is an example of 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 that 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?

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

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):

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers.This is called:

_____ describes the process of strategically managing the efficient flow and storage of raw materials,in-process inventory,and finished goods from point of origin to point of consumption.

_____ are intermediaries who facilitate the sales of a product from producer to end user by representing retailers,wholesalers,or manufacturers and providing little input as to the terms of the sale.

You are responsible for physical distribution of your company's service and should focus on:

One important reason channel members are included between producers and users is the concept of specialization and division of labor.Define these concepts and explain their roles in channels of distribution.

A discrepancy of _____ is the difference between the amount of product produced and the amount an end user wants to buy.

Nontraditional channel arrangements:

Gray marketing channels assist brand name manufacturers in marketing their products more efficiently.

Consider a scenario in which there are five manufacturers,no intermediaries,and four consumers.Twenty transactions would be required for each consumer to receive products from each manufacturer.The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.

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.