Exam 13: Marketing Channels

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Retailers and merchant wholesalers are examples of intermediaries that:

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Lawn Boy manufactures 13 models of walk-behind lawn mowers and 6 types of riding mowers Even though lawn mowers is a product category that does not sell year-round,sales remain steady all year because Lawn Boy sells to wholesale distributors that stock the product.Its wholesale distributors are helping to overcome a(n)_____ discrepancy.

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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.Warner Bros. ,Blockbuster,Redbox,Walmart,and third-party DVD distributors are part of a:

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Agents and brokers:

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

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Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and Office Depot,online directly from HP,and through various catalogs.HP is using a(n)_____ distribution arrangement.

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Canesta Company has developed a virtual keyboard out of light to be used with cell phones and 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:

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Companies selling standardized items of moderate or low value to other businesses (not to consumers)often use:

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What is a marketing channel? What type of businesses make up a marketing channel?

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When discussing the distribution of services,you will often hear channel members discussing the need to minimize wait times.

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

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This case revolves completely around

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Polo brand apparel is only available in fine department stores or from Polo retail stores.Which distribution strategy has Polo adopted?

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

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Time Warner Cable provides a direct channel for consumers because they take all the various programming companies (such as Disney and Viacom)and provide their shows on one cable system.

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_____ distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.

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Channel conflict:

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