Exam 13: Marketing Channels

The three basic functions channel intermediaries perform are:

Many large champagne sellers do their own importing and desire to maintain independent price points in different markets.Thus,a bottle of champagne might cost $45 in the United States while the same bottle might be only 20 euros (about $30)in France.It is often profitable to buy the wine in Europe,typically from an unauthorized distributor,and resell it in the United States.U.S.wine merchants who do so would be engaging in:

Exclusive distribution is the most extensive form of market coverage.

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 Wal-Mart, 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,Wal-Mart,and third-party DVD distributors are part of a:

Selfridges is the second-largest department store in Great Britain.It works with House of Frasier,one of its competitors,to reduce operating costs by sharing channels of distribution to ship goods from 1,500 plus suppliers.Selfridges and House of Frasier are engaged in:

All of the following are sorting activities EXCEPT:

Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

_____ are wholesaling intermediaries who facilitate the sales of a product from producer to end user by representing retailers,wholesalers,or manufacturers and providing little input as to the terms of the sale.

Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB)games online at MLB.com.That business is worth more than $100 million to MLB.But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games.Which of the following is likely to occur between MLB and broadcast television?

Metallurgical Designs makes gold and silver charms for necklaces and bracelets.It markets its charms to a few retailers in any one region and promotes them intensively to those retailers.This is an example of intensive distribution.

Vutek manufactures printing machines used to print high resolution graphics for billboards,bus cards,banners,and posters.For distribution,you would expect Vutek to use a:

A(n)_____ is an institution that buys goods from manufacturers,takes title to these goods,and resells them to businesses,government agencies,and/or other wholesalers or retailers.

Jones Soda is positioned as the anti-Coke.In the early years,few mainstream retailers sold Jones soda.Fans had to get their Jones fix in surf shops,tattoo parlors,and bookstores,adding to the brand's mystique.Jones Soda used its _____ to create a competitive advantage.

Reciprocal conflict occurs among channel members on the same level,such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

Discuss the three main areas of importance in service distribution.

Gray marketing channels assist brand name manufacturers in marketing their products more efficiently.

Cutter & Buck is a high-end fashion sportswear company.Even though swimwear is a product category that does not sell year round,its sales remain steady all year because Cutter & Buck sells to wholesale distributors that stock the product.Its wholesale distributors are helping to overcome a(n)_____ discrepancy.

Customers can purchase HP 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.

R. H. Kurt & Son R. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers. -Refer to R.H.Kurt.When Kurt combines products from 41 different manufacturers into a collection retail buyers want available at one place,it is engaging in:

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 Wal-Mart, 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,drug stores,discount stores,entertainment stores,and vending machines like Redbox. Which level of distribution intensity does this represent?