Exam 11: Marketing Channels

A channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Give an example of channel conflict.

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n)________.

________ distribution gives producers good market coverage with more control and less cost than does intensive distribution.

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have?

In creating customer value, it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners.

A(n)________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership.

In a just-in-time logistics system, ________.

A(n)________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements.

Which of the following would be considered an upstream partner in a company's supply chain?

When a seller requires that only certain dealers carry its products, its strategy is known as ________.

Reverse logistics refers to moving ________.

Wholesaling includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Customer-centered logistics starts with the marketplace and works backward to the factory.

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

Mary Jay, an American designer of luxury leather goods, had experienced growth by selling her goods in her own retail stores. As internet usage increased, Mary Jay did what many of her competitors did: she created a virtual online store on her company website. When the Canadian and US dollars were on par, many Canadian shoppers would purchase online through the US website since there were no retailers in Canada carrying Mary Jay goods. Eventually, Mary Jay opened her own retail stores in Canada after considering the risks and advantages of going global. She also created opportunities with major department stores to carry her goods under specific conditions. -Describe possible conflicts that can arise.

How does a company determine its channel objectives? What factors influence the channel objectives of a company?

Today, fewer companies outsource their logistics to third-party logistics providers.

How can a firm benefit from participating in a horizontal marketing system?