Exam 27: Marketing Channels and Retailing

Maggie Moo's has decided that consumers will drive out of their way for the store's yummy ice cream offerings.The owner needs to keep his overhead costs (such as rent)low and wants to avoid locating near competitors.For a location,Maggie Moo's should open in a:

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.

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

With the _____ channel relationship,both parties retain their independence and pursue their own interests while attempting to benefit from the goods or services provided by the other.

Discount stores are retail chains that compete on the basis of low prices,high turnover,and high volume.Name and briefly describe four types of discounters,and give an example of each type.

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.Production studios distribute DVDs in grocery stores,drugstores,discount stores,entertainment stores,and vending machines like Redbox.Which level of distribution intensity does this represent?

Consider a scenario in which there are five manufacturers,no intermediaries,and four consumers.Twenty transactions would be required for each consumer to receive products from each manufacturer.The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.

Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization?

Channel conflict that occurs between different levels in a marketing channel is referred to as:

Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra. -Refer to Diaz.The smell of fresh coffee,the fact it is made where drinkers can watch the process,and the comfortable chairs all are used to create the store's:

Dillard's,Target,and Walmart use data mining to determine which products to stock at what price,how to manage markdowns,and how to advertise to draw target customers.

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:

Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra. -Refer to Diaz.The type of merchandise carried by Diaz is deep but with a narrow assortment.The store would most likely be classified as a:

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

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.Production studios are potentially producing _____ among its existing distributors by allowing Redbox to rent their DVDs for $1.00.

Whenever a customer opens an account at First Southern National Bank,a teller or account representative asks the customer whether he or she needs a CD,online banking,or other services.In other words,the account representative engages in:

Jennifer owns a greeting card store where she also sells women's purses,Crocs shoes for the whole family,Jibbitz charms,cell phone skins,Sandy Lion stickers,Yankee candles,Godiva chocolates,Precious Memories figurines,beaded jewelry,and stuffed animals.Jennifer uses multibrand merchandising.

Define retailing and list the factors that are used to classify retail operations.

Discuss the four main areas of importance in service distribution.

Domino's pizza,Hyatt Corporation,and Wendy's are all examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business.