Exam 11: Marketing Channels

Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company's supply chain.

According to the text, the goal of any logistics system should be to maximize sales, not profits.

What types of products are exclusively distributed?

GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n)________ marketing system.

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Companies selling perishable products generally prefer direct marketing, which minimizes delays.

With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries.

Vertical conflicts in distribution channels are conflicts that occur between ________.

Outbound logistics refers to moving ________.

Compare and contrast a conventional distribution channel with a vertical marketing system (VMS).

Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances?

The producer and intermediaries need to agree on the terms and responsibilities of each member, including price policies, conditions of sale, territorial rights, and specific services to be performed by each party.

A company that has no intermediary levels sells its products directly to its customers.

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

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. -How many channel levels did Mary Jay have?

Describe four of the eight key functions that members of the marketing channel perform.

What types of products are intensively distributed?

________ are the largest group of wholesalers. The group can be divided into the two broad types of full-service and limited-service.