Exam 13: Marketing Channels

Hill's Pet Nutrition products are distributed mainly through specialty pet food stores and veterinarians rather than mass retailers like Target or Kmart.Only a few dealers are chosen in any single geographic area.This is an example of _____ distribution.

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 can 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.

All of the following are sorting activities EXCEPT:

Because of the contract,the desire to renegotiate a higher price,and the smear campaign Viacom ran against Time Warner Cable,these two companies likely have

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.Production studios are potentially producing _____ among its existing distributors by allowing Redbox to rent their DVDs for $1.00.

Exclusive distribution increases direct competition among retailers.

A channel leader is also called a(n):

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

Johns Manville is the only manufacturer to offer a complete line of formaldehyde-free fiberglass building insulation,which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities;plus it is an excellent sound control for interior floors.As the only manufacturer and patent holder of this revolutionary insulation,Johns Manville has great power over its dealers.It is an example of a:

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.

_____ is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.

Which of the following is most likely to use a retailer channel of distribution?

A worker who categorizes eggs into Grade AA,Grade A,and Grade B categories is engaging in the _____ process.

Imagine that a European manufacturer wants to introduce its digital thermostats to the U.S.market.The thermostats are designed to reduce power usage and save energy.What are the two basic channel structures it can use? Briefly describe the advantages and disadvantages of each method.

A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses,government agencies,and other wholesalers or retailers.

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.Production studios distribute DVDs in grocery stores,drugstores,discount stores,entertainment stores,and vending machines like Redbox.Which level of distribution intensity does this represent?

If there were a blackout,customers would be suffering a discrepancy of assortment.

With respect to the sorting logistical function,_____ is the combining of similar stocks into a larger homogeneous supply.

The major weakness to Arm's-length relationships is:

Scholastic Press published millions of copies of Mockingjay,the final installment in Suzanne Collin's popular Hunger Games trilogy of books.However,each reader wants to purchase just one copy.The difference between the number of books Scholastic Press published and the number a consumer wants to buy is referred to as a: