Question 1

Jenny gathers information from a variety of channels,conducting extensive research on the advantages/disadvantages of the products available.She visits a number of high-priced retailers,asks numerous questions,and tries many of the products.When the time comes to purchase,she always purchases through the lowest-cost channel.Jenny is best described as a ________.

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Question 2

Manufacturers are constantly tempted to move from exclusive distribution or selective distribution to more intensive distribution.Give a reason why this might not be a good long-term strategy for a manufacturer.

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Question 3

Your product has low brand loyalty in its category;brand choice is often made by the consumer in the store,often at the very moment of purchase.Which promotion strategy would hold the greatest opportunity for incremental sales for your product?

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Question 4

The most advanced supply-distributor arrangements for administering VMSs involve distribution programming.Explain the components of distribution programming.

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Question 5

The sales of your product are low compared to your competition.The decision facing you is whether to use a sales agency (brokers,manufacturers' representatives)or hire a field sales force.The fixed costs of engaging a sales agency are lower than those of establishing a company sales force,but costs rise faster through an agency.When figuring out sales and costs,the intersection of the costs between sales agencies and sales force (SB)means that ________.

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Question 6

Explain the differences between a vertical marketing system (VMS)and a conventional marketing system?

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Question 7

A company selling exercise equipment may need to establish three channels of distribution-a sales channel,a delivery channel,and a ________.

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Question 8

Explain why the marketing channel system is so important to a firm.

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Question 9

Palm,the leading manufacturer of handheld devices,consists of a whole community of suppliers and assemblers of semiconductor components,plastic cases,LCD displays,and accessories;of off-line and online resellers;of 275,000 developers in the Palm Developer Network who have created over 21,000 software programs and 100 hardware add-ons for the Palm operating system for handheld computers and smartphones.Combined,these make up Palm's ________.

Accepted Answer

Palm's community of suppliers, assemblers, resellers, and developers form a value network, which encompasses all the external entities that create value for Palm's products and services. This term captures the holistic nature of Palm's extended network of relationships and highlights the importance of collaboration and cooperation among these entities to create value for the end customers.

Question 10

In rolling out your company's newest product,you decided to use manufacturers' representatives as your sales agents.Part of your ________ was to establish territories based upon counties per state.

Accepted Answer

The establishment of territories based on counties per state is a decision related to the trade-relations mix, which deals with the strategy of using manufacturers' representatives as sales agents. Franchise agreements refer to a contractual agreement in which a company provides a license to a third party to conduct business under its name. Pricing policies relate to how the company sets the prices for its products. Product specs refer to the specific features and characteristics of a product. Conditions of sale refer to the terms and conditions under which a product is sold to a customer.

Question 11

Tupperware manufactures kitchen goods and has its representatives sell them through home parties.This is an example of a ________.

Accepted Answer

Tupperware's distribution strategy is an example of a direct marketing channel, where goods are sold directly to the end consumer through a network of representatives or agents. This eliminates intermediaries between Tupperware and the end consumer, allowing for direct communication and feedback.

Question 12

Your product enjoys high brand loyalty and high involvement in the category.It has perceived differences that consumers recognize between brands and is one of the few that its consumers choose before selecting the retail store/Web site to purchase the product.Which promotion strategy would hold the greatest opportunity for incremental sales for your product?

Accepted Answer

Since the product enjoys high brand loyalty and high involvement in the category, a pull strategy is more suitable as consumers already recognize the differences between brands and actively seek out the product before selecting the retail store/web site to make the purchase. A pull strategy focuses on drawing customers towards the brand instead of pushing the product towards them. This can be done through advertising, social media marketing, in-store displays, and other promotional tactics that create brand awareness and encourage consumers to seek out the product themselves. This approach is likely to result in incremental sales for the product.

Question 13

________ deals between suppliers and retailers,such as Disney's Consumer Products deal with Wal-Mart,are becoming a mainstay for specialists looking for an edge in a business world that is increasingly driven by price.

Accepted Answer

Exclusive deals between suppliers and retailers refer to an agreement in which the supplier agrees to provide its products exclusively to one retailer, which gives the retailer a competitive edge. In the given context, Disney's Consumer Products deal with Wal-Mart is an exclusive deal, as it provides Wal-Mart with the exclusive right to sell Disney merchandise, which helps Wal-Mart differentiate itself from its competitors.

Question 14

When managing a hybrid channel,the channel manager must ensure that these different channels work seamlessly in the consumer's opinion.When the consumer can order a product online and pick it up at the nearby retail store or be able to return the Internet-ordered product to the retail store,we state that the channel has ________.

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Channel integration refers to the seamless combination of different channels to create a unified customer experience. In this case, the customer is able to use both the online and retail channels for ordering and returning products. This demonstrates effective channel integration. A is incorrect as it does not accurately describe this situation. C and D are similar to B, but not as specific. E is unrelated to the situation described.

Question 15

Explain the concept of a hybrid channel distribution system.

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Question 16

Different consumers have different needs during the purchase process.Researchers Nunes and Cespedes argue that,in many markets,buyers fall into four categories.List and briefly define these four categories.

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Question 17

In designing a marketing channel system,the marketer must understand the service output levels desired by target customers.Channels provide five service outputs.List and briefly describe each of these outputs.

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Question 18

For a brick-and-click company to add e-commerce to its marketing mix,the firm must be aware that it creates the threat of a backlash from its channel partners.The question remains: How to sell both through intermediaries and online? Three strategies for successfully answering this question were postulated in the chapter.List and briefly define these three strategies.

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Question 19

What are some of the advantages available to producers using intermediaries?

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Question 20

Demand chain planning yields several insights for manufacturers who follow this view of the supply chain.Explain what these insights are and how companies can use them to their best advantage.

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Quiz 15: Designing and Managing Integrated Marketing