Question 1

Nestle and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide.

Accepted Answer

Nestle and General Mills have a strategic channel alliance, which is an agreement between two or more organizations to work together towards a specific goal or objective. In this case, the goal is to distribute General Mills products in multiple markets worldwide, leveraging Nestle's existing distribution network and expertise. This type of partnership allows both companies to benefit from each other's strengths and resources while minimizing risks and costs associated with entering new territories.

Question 2

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains like Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the U.S. What method of distribution best describes the method used by pharmaceutical companies in this example?

Accepted Answer

The pharmaceutical companies in this example are using both direct distribution to hospitals and clinics and indirect distribution through retail chains and drug wholesalers. This combination of channels is called dual distribution.

Question 3

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as __________.

Accepted Answer

The practice described in the question is known as a strategic channel alliance where one firm's marketing channel is utilized to market and sell another firm's products. The other options such as dual distribution, cooperative distribution, integrated channel alliance, and multichannel venture do not accurately describe the presented scenario.

Question 4

An example of a(n) __________ is Kraft Foods using the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan.

Accepted Answer

This situation describes a strategic channel alliance, which is when two or more companies work together to reach a target market. Kraft Foods and Ajinomoto have formed an agreement where Ajinomoto's distribution system is utilized by Kraft to sell its Maxwell House coffee in Japan. This is an example of a strategic channel alliance because Kraft is leveraging the resources of another company to reach a desired market.

Question 5

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming?

Accepted Answer

A strategic channel alliance is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming. This is because it involves collaborating with one or more companies in the distribution channel to reach a common goal, thereby reducing costs and risks associated with channel operations.

Question 6

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and also sell them online. This would be an example of which type of marketing channel strategy?

Accepted Answer

The answer of Rather than compete with large greeting card...

Question 7

The three major types of vertical marketing systems are corporate, contractual, and __________.

Accepted Answer

The third major type of vertical marketing system is administered, which involves coordination between independent firms primarily through the leadership of one dominant firm (e.g. a dominant retailer). Integrated and cooperative are not commonly recognized as major types of VMS, and delegated and manufacturer-dominated are not established types at all.

Question 8

Vertical marketing systems refer to

Accepted Answer

Vertical marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. They involve collaboration among different members of the distribution channel, such as manufacturers, wholesalers, and retailers, to better meet customer needs and increase efficiency. This approach allows for greater control and coordination of the entire distribution process, leading to improved performance and profitability.

Question 9

The General Mills-Nestle strategic channel alliance

Accepted Answer

The General Mills-Nestle strategic channel alliance increased the ready-to-eat cereal worldwide market share of these companies.

Question 10

Strategic channel alliances refer to

Accepted Answer

Strategic channel alliances refer to a practice whereby one firm's marketing channel is used to sell another firm's products. This can help both firms to expand their reach and increase their sales without the need for additional investment in marketing channels.

Question 11

The combination of successive stages of production and distribution under a single ownership is referred to as a(n) __________.

Accepted Answer

The combination of successive stages of production and distribution under a single ownership is referred to as a corporate vertical marketing system. A contractual vertical marketing system involves independent firms at different levels of production and distribution working together in a contractual agreement. An integrated marketing system refers to the coordination and integration of diverse marketing elements and activities by a company. A corporate horizontal marketing system involves companies at the same level of production and distribution working together. A contractual horizontal marketing system involves companies in different sectors and industries working together through a contractual agreement.

Question 12

Dual distribution refers to

Accepted Answer

Dual distribution refers to a strategy where a company uses two or more different types of channels to reach different buyers for the same product. This can include both direct and indirect channels, such as selling through both company-owned stores and online retailers.

Question 13

The three major types of vertical marketing systems are administered, corporate, and __________.

Accepted Answer

The three major types of vertical marketing systems are administered, corporate, and contractual. The correct answer is contractual, as this is the missing type that completes the trio. Contractual VMS involves independent firms working together through contracts to coordinate their activities and improve efficiency.

Question 14

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as __________.

Accepted Answer

Dual distribution refers to the use of two or more different channels to reach the same target market. This allows the firm to expand its reach and provide customers with different options to purchase the product. It is a common strategy used by many companies to increase their sales and market share.

Question 15

Kraft Foods distributes Starbucks coffee in U.S. supermarkets and internationally. These firms are most likely using __________ strategy.

Accepted Answer

Kraft Foods and Starbucks have a strategic channel alliance where they work together to distribute Starbucks coffee through supermarkets and internationally.

Question 16

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as __________.

Accepted Answer

The answer of Professionally managed and centrally coordinated marketing channels...

Question 17

CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestle.

Accepted Answer

CPW is a strategic channel alliance between General Mills and Nestle, combining their respective strengths in manufacturing and distribution to create a global business.

Question 18

Multichannel marketing

Accepted Answer

Multichannel marketing allows firms to leverage the value-adding capabilities of different channels, such as online, in-store, and mobile. This can lead to a more effective overall marketing strategy and increased sales. A, C, D, and E are not accurate statements about the benefits of multichannel marketing.

Question 19

A corporate vertical marketing system refers to

Accepted Answer

The answer of A corporate vertical marketing system refers to
...

Question 20

In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy would be to __________ of the firm's family brand and differentiate its marketing channels.

Accepted Answer

The answer of In some instances, firms pair multiple channels...

Quiz 12: Managing Marketing Channels and Supply Chains