Deck 8: Using Marketing Channels to Create Value for Customers

Question 1

All of the people and organizations that buy,resell,and promote a product "downstream" as it makes it to the end user is referred to as the _____.

A) distribution channel
B) retail channel
C) supply channel
D) communication channel
E) business channel

Answer 1

A

Question 2

Organizations that are involved in the process of producing,promoting,and delivering company products to its user but are not active participants in selling of the products are referred to as _____.

A) supply chains
B) marketing channels
C) mail-order wholesalers
D) drop shippers
E) off-price retailers

Answer 2

A

Question 3

A company may partner with intermediaries because:

A) the consumer needs marketing expertise.
B) the producer needs the ability to lend the consumer credit.
C) the producer needs shipping and handling capabilities.
D) the producer needs to contact other producers.
E) the consumer needs the right producers.

Answer 3

C

Question 4

Cash-and-carry wholesalers are an example of _____.

A) full-service wholesalers
B) brokers
C) manufacturer's agents
D) drop shippers
E) limited-service wholesalers

Question 5

The firms that a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its _____.

A) supply members
B) channel members
C) marketing partners
D) corporate members
E) B2B partners

Question 6

Mary ran into a store dedicated to the newest cat foods offered by her favorite pet food provider.She has so much fun interacting with the free samples and toys,that she brings her cat Fluffy to the store the next week,but finds that the store is no longer there.Mary had most likely found a(n)_____.

A) convenience store
B) specialty store
C) pop-up store
D) category killer
E) off-price retailer

Question 7

A business that purchases products in large quantities from producers and then sells it to another entity is known as a _____.

A) broker
B) retailer
C) distributor
D) wholesaler
E) consumer

Question 8

A category killer is a type of specialty store that sells a high volume of a particular product.

Question 9

The simplest marketing channel consists of just three parties.

Question 10

How companies sell is just as important as what they sell.

Question 11

Companies strive to choose not only the best marketing channels,but the best channel partners.

Question 12

Brokers take title to the products they sell.

Question 13

_____ sell specialty products that they display on their own racks in stores.

A) Rack jobbers
B) Truck jobbers
C) Truck wholesalers
D) Mail-order wholesalers
E) Dealers

Question 14

Outlet stores are oversized department stores that carry a broad array of general merchandise as well as groceries.

Question 15

_____ are characterized as having a wide variety of household and personal types of merchandise such as clothing and jewelry.

A) Off-price retailers
B) Drugstores
C) Supermarkets
D) Department stores
E) Warehouse clubs

Question 16

_____ are characterized by selling products at a discount to people who pay an annual membership fee to join them.

A) Off-price retailers
B) Drugstores
C) Supermarkets
D) Department stores
E) Warehouse clubs

Question 17

Wholesalers resell goods to other companies without transforming the goods.

Question 18

Door-to-door sales and telemarketing are examples of direct marketing.

Question 19

The lines between retailers,wholesalers,and producers are very easy to distinguish.

Question 20

A product's supply chain includes transportation companies such as railroads.

Question 21

The process called _____ involves breaking down large quantities of products into smaller units that are more convenient for retailers to buy.

Question 22

_____ wholesalers sell their products using catalogs instead of sales forces and then ship the products to buyers.

Question 23

Does a great channel member always prove to be the best option? Give reasons to support your answer.

Question 24

The specific avenue a seller uses to make a finished good or service available to you for a purchase is known as the product's _____.

Question 25

The Internet has fueled a certain amount of disintermediation.

Question 26

_____ are often located on corners that are easy and fast for consumers to get in and out of.

Question 27

A marketing channel offers little scope to companies to set itself apart from the crowd.

Question 28

_____ involves sending promotional materials straight to consumers urging them to contact the firms directly to buy products.

Question 29

Frank needs to buy groceries,get a haircut,and stop for lunch.He could accomplish all these things under the same roof if he were to visit a(n)_____.

A) superstore
B) supermarket
C) grocery store
D) convenience store
E) category killer

Question 30

Identify and describe the three basic types of wholesalers.

Question 31

Explain why there are a variety of types of supermarkets in terms of prices and offerings.

Question 32

_____ vary by the types of products they sell,their sizes,the prices they charge,the amount of service they provide,and the convenience or speed by which they offer them.

Question 33

The process involving wholesalers owning a good until purchased by other sellers is known as _____.

Question 34

_____ is the process of monitoring supply chains.

Question 35

The most common form of agent and broker consumers encounter are found in _____.

Question 36

When creating a marketing channel,the key is to understand the different target markets for your product and designing the best channel to meet the needs of customers in each.

Question 37

A direct channel consists of only a producer and a consumer.

Question 38

List and describe five types of retailers.

Question 39

_____ also create efficiencies by streamlining the number of transactions an organization must make.

Question 40

The producer does not market directly to consumers when it is involved in an indirect channel.

Question 41

Explain the advantages of using an intermediary.

Question 42

A pull strategy utilizes customers to convince businesses to sell a product.

Question 43

A(n)_____ is formed when two parties agree to share their profits,losses,and control with one another in an economic activity they jointly undertake.

A) strategic alliance
B) direct foreign investment
C) joint venture
D) franchising
E) exporting

Question 44

Disintermediation involves granting an independent operator the right to use your manufacturing processes,trade secrets,patents,and trademarks for a certain amount of time in exchange for a fee.

Question 45

Acquiring part or all of a foreign company is a common strategy for companies known as _____.

A) strategic alliance
B) direct foreign investment
C) joint venture
D) franchising
E) exporting

Question 46

The clout of the various organizations in its marketing channel can affect the contract terms.

Question 47

Cutting middlemen out of the channel is known as:

A) disintermediation.
B) restructuring.
C) strategic distribution.
D) dismemberment.
E) rearranging.

Question 48

Identify and describe five channels utilized by firms attempting to enter a foreign market.

Question 49

_____ grants an independent operator the right to use a company's business model,techniques,and trademarks for a fee.

Question 50

Which of the following is the least risky global entry strategy?

A) Strategic alliance
B) Direct foreign investment
C) Joint venture
D) Franchising
E) Exporting

Question 51

The problem with a pull strategy is that it doesn't focus on the needs of the actual users of products.

Question 52

A push strategy primarily involves creating consumer demand.

Question 53

Explain some barriers for companies trying to expand their offerings into foreign markets.

Question 54

A(n)_____ is an entity that is created when two parties agree to share their profits,losses,and control with one another.

Question 55

____ grants a firm the right to use another firm's manufacturing processes,trade secrets,patents,and trademarks for a certain period of time.

Question 56

Explain why companies utilize multiple channels.

Question 57

A channel that includes one or more _____ is known as an indirect channel.

Question 58

Different organizations in a marketing channel are responsible for different value-adding activities.

Question 59

_____ is an agreement formed by two or more firms to deliver their products via a channel.

Question 60

_____ are intermediary firms that sell products that businesses or government departments and agencies use but don't resell.

A) Online retailers
B) Warehouse clubs
C) Industrial distributors
D) Category killers
E) Specialty stores

Question 61

Explain how a pharmaceutical company could utilize both a pull and push strategy.

Question 62

Explain the advantages and disadvantages of storing inventory.

Question 63

A(n)_____ provision designates who is responsible for what shipping costs,who owns title of goods and when.

Question 64

A _____ focuses on communicating the product's benefits to the consumer so as to create demand that retailers and distributors must meet.

A) communications strategy
B) push strategy
C) pull strategy
D) customer-focused strategy
E) value strategy

Question 65

To control the image of their products and prices at which they are sold,the makers of upscale products often prefer to distribute their products more exclusively.

Question 66

A company's prime consideration while selecting channels is how its customers want to buy products.

Question 67

A strategy utilized by the manufacturer of a good that convinces the wholesaler,distributor,or retailer to sell its products is known as a(n):

A) push strategy.
B) pull strategy.
C) distribution strategy.
D) alliance strategy.
E) marketing strategy.

Question 68

One of the functions of _____ and _____ is to break large quantities of products down into smaller units.

A) wholesalers; consumers
B) retailers; consumers
C) wholesalers; retailers
D) retailers; distributors
E) wholesalers; distributors

Question 69

Often,two or more channel members will work together to promote a product to:

A) retailers; manufacturers; consumers.
B) retailers; purchasing agents; manufacturers.
C) manufacturers; purchasing agents; consumers.
D) retailers; purchasing agents; consumers.
E) manufacturers; promoters; consumers.

Question 70

The Internet is hindering companies' ability to develop customer relationships.

Question 71

Consumers are informed via advertising and other promotions that a product is available for sale in a push strategy.

Question 72

_____ is a function of channel members that ensures that wholesalers,distributors,retailers,and consumers are informed of the existence of particular offerings.

Question 73

The Internet is the best channel for every product.

Question 74

_____ that travel within a channel need to be moved from one member to another and sometimes back again.

Question 75

A push strategy's main focus is to sell to _____.

Question 76

A(n)_____ is a contract that specifies what information is proprietary and how the partner can use the information.

Question 77

Explain why it is important for companies to be able to track inventory within the channel.

Question 78

Selecting the best marketing channel is critical because it can mean the success or failure of your product.

Question 79

List and describe the various functions a channel member can perform.

Question 80

Alex is providing special incentives to the employees at a gourmet food shop in hopes that they recommend his company's cheese to customers.Alex is utilizing a(n)_____.

A) sales promotion strategy
B) push strategy
C) communications strategy
D) pull strategy
E) influential strategy