Exam 11: Marketing Channels

Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week the owners opened up a walk-in discounted consumer produce outlet. Always is now using a multichannel distribution system.

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow a new marketing opportunity, they are forming a horizontal marketing system.

What is the role of marketing intermediaries?

In a vertical marketing system, producers do not use intermediaries to sell their products.

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

When Sherwin Williams Paint Company has single ownership of integrated, successive stages of production and distribution, it has created a corporate VMS.

Explain why "value delivery network" is a more relevant expression to use than the terms supply chain and demand chain.

The franchise organization is an example of a corporate vertical marketing system.

Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together?

A firm that uses direct marketing would most likely sell its products through ________.

The three main types of franchises are manufacturer-sponsored retailers, manufacturer-sponsored wholesalers, and service-firm-sponsored retailers.

The use of both rail and trucks for transporting goods is called ________.

Which of the following is true of RFID or radio frequency ID tags?

What types of products are selectively distributed?

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case?

Disintermediation is a threat to incumbent retailers in North America.

A multichannel marketing system is one in which a producer sells to multiple markets using the same distribution channel.

Why are multichannel distribution systems gaining popularity today?