Question 1

________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

Accepted Answer

Marketing channels refer to the network of organizations involved in the process of getting a product or service from the manufacturer or provider to the end customer. This includes the different intermediaries, such as wholesalers, retailers, and distributors, who work together to create value for the customer and ensure the product or service is available for use or consumption.

Question 2

Which of the following entities in the marketing channel is a merchant?

Accepted Answer

A merchant is defined as someone who buys and sells goods for a profit, which is exactly what wholesalers do in the marketing channel. Brokers and sales agents facilitate a transaction between a buyer and seller, but do not take ownership of the goods themselves. Warehouses store and distribute goods, but do not buy or sell them. Advertising agencies provide promotion services, but do not buy or sell goods.

Question 3

A jobber in a three-level marketing channel is a(n) ________.

Accepted Answer

A jobber is a type of middleman who buys goods in bulk from manufacturers and resells them to retailers in smaller quantities. This makes them a type of small-scale wholesaler.

Question 4

Which of the following is an example of a zero-level channel?

Accepted Answer

A zero-level channel involves direct selling to customers without the involvement of intermediaries such as wholesalers or retailers. Option A describes a company taking orders directly from customers and shipping products to them, thereby eliminating intermediaries and representing a zero-level channel. The other options involve at least one intermediary, thus not fitting the definition of a zero-level channel.

Question 5

Which of the following entities is present in a zero-level marketing channel?

Accepted Answer

A zero-level marketing channel consists of direct sales from the manufacturer to the consumers. Therefore, only consumers are present in this channel.

Question 6

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

Accepted Answer

The firm is using a hybrid marketing strategy by using both sales force and outbound telemarketing to sell to different types of accounts.

Question 7

A direct marketing channel is a ________.

Accepted Answer

A zero-level channel, also known as a direct marketing channel, involves the producer selling directly to the final customer without the use of intermediaries such as wholesalers, retailers, or agents.

Question 8

When is a pull strategy appropriate?

Accepted Answer

The answer of When is a pull strategy appropriate?
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Question 9

Identify the channel function that constitutes both backward and forward flow.

Accepted Answer

The answer of Identify the channel function that constitutes both...

Question 10

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

Accepted Answer

This strategy is known as a push strategy, where the focus is on pushing the product to the end user through the use of sales force, trade promotions, and other sales tactics. The opposite strategy is a pull strategy, where the focus is on creating demand among consumers and pulling them towards the product through advertising, promotions, and other consumer-focused tactics. The other options (personalization strategy, tailoring strategy, and consumer promotion strategy) do not accurately describe the strategy being used in this scenario.

Question 11

Using the push strategy is most appropriate when ________.

Accepted Answer

The push strategy is most effective when selling impulse items, as it involves using aggressive advertising and sales promotions to convince retailers and wholesalers to stock up on the product, and then push it to consumers at the point of purchase. This strategy works best for products that consumers may not have planned to purchase beforehand, and are more likely to be influenced by in-store displays and promotional offers.

Question 12

Total Beverages, a maker of fruit juices and health drinks, recently launched a new brand of packaged drinking water called AquaPure. In order to induce distributors to carry the product, Total offers all its intermediaries a free refrigerator to store bottles of AquaPure. This is an example of a ________.

Accepted Answer

This is an example of a push strategy, where the company is pushing its product through the distribution channel by offering incentives to intermediaries like distributors. The free refrigerator is an incentive to encourage distributors to carry the product and promote it to end consumers.

Question 13

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

Accepted Answer

By shifting some functions to intermediaries, producers are able to lower their costs and prices, as intermediaries can often perform these functions more efficiently and at a lower cost. This can make the producer's products more competitive in the marketplace.

Question 14

Which of the following channel functions constitute only a backward flow?

Accepted Answer

Placing orders with manufacturers is a backward flow function as it involves the movement of information and requests from the retailer/distributor to the manufacturer/supplier. The other options listed involve forward flow functions such as physically moving goods, communication with customers, storage of goods, and actual transfer of ownership.

Question 15

Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and also ropes in a famous athlete to endorse the product. This is an example of a ________.

Accepted Answer

This advertising campaign with a famous athlete endorsement is an example of a pull strategy, which aims to create consumer demand and pull the product through the distribution channel. The campaign is focused on generating interest and demand among consumers, rather than pushing the product through the channel via trade promotions or use of reverse flow. The term "backward flow" is not a commonly used marketing term and is not relevant to this situation.

Question 16

Which of the following activities is a reverse-flow channel of marketing?

Accepted Answer

Product recycling is a reverse-flow channel of marketing as it involves the movement of used or discarded products from customers back to the company for re-use or disposal.

Question 17

Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called ________.

Accepted Answer

Demand chain planning involves designing supply chains based on the demands of the target market, thus ensuring the availability of products and services when and where they are needed. This approach helps companies to better align their resources, processes, and technologies with customer demand, leading to improved efficiency, reduced costs, and enhanced customer satisfaction.

Question 18

A(n) ________ is a facilitator who assists in the distribution process.

Accepted Answer

The answer of A(n) ________ is a facilitator who assists...

Question 19

A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice?

Accepted Answer

This practice involves integrating multiple channels (online and offline) to provide convenience to the customers.

Question 20

Which of the following is the most accurate description of a value network?

Accepted Answer

A value network is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings. It includes all the organizations, individuals, and activities involved in the creation and delivery of a product or service. This can include suppliers, distributors, retailers, and other stakeholders that work together to add value to the product or service. Therefore, option A is the most accurate description of a value network.

Quiz 15: Designing and Managing Marketing Channels and Value Networks