Deck 1: Understanding Channel Strategies

Question 1

Audrey works as a manufacturers' representative for an athletic shoe company.In her position,Audrey is most likely responsible for ________.

A) generating marketing intelligence about the footwear industry
B) taking physical possession of large quantities of shoes
C) analyzing international markets for new shoe trends
D) negotiating terms of trade with shoe retailers
E) scheduling shoe deliveries and returns

Answer 1

D

Question 2

What risk does a branded manufacturer most likely face by allocating part of its production capacity to private-label products?

A) complicating the channel strategy
B) creating a future competitor
C) reducing licensing income
D) losing customer trust
E) depleting inventories

Answer 2

B

Question 3

Valu-Mart wants to ensure that its stores are never under- or overstocked with certain products,such as paper towels,sodas,and cereal.Which tool would most likely help Valu-Mart solve this problem?

A) ROI
B) CRP
C) CRM
D) OEM
E) SWOT

Answer 3

B

Question 4

Sony produces televisions and computers and sells them through electronics stores.In a marketing channel,Sony would best be described as a ________.

A) trading company
B) manufacturer
C) wholesaler
D) distributor
E) retailer

Question 5

According to the text,what is a new trend taking place among retail intermediaries?

A) selling products directly to individual end-users
B) selling products and services to businesses
C) promoting products through catalogs
D) selling products to wholesalers
E) shipping products overseas

Question 6

Tanya recently purchased paper towels,sodas,and frozen pizzas at Sam's Club,a hypermarket.In the marketing channel system,Tanya is best described as a(n)________.

A) independent retailing agent
B) consumption representative
C) downstream channel member
D) upstream channel member
E) specialized intermediary

Question 7

Which term refers to a set of independent organizations involved in the process of making a product or service available for use or consumption?

A) value chain
B) supply chain
C) marketing channel
D) wholesale consortium
E) multinational enterprise

Question 8

ElectroInc produces cell phone accessories and sells them to firms such as Apple and Samsung.Apple and Samsung put their own brand names on ElectroInc products before selling them to end-users.Which term best describes ElectroInc?

A) retailer
B) wholesaler
C) branded manufacturer
D) specialized manufacturer
E) private-label manufacturer

Question 9

Department stores,convenience stores,and warehouse clubs are best categorized as ________.

A) category killers
B) product distributors
C) retail intermediaries
D) wholesale intermediaries
E) specialized intermediaries

Question 10

A ________ is a channel member that takes the primary role of establishing and maintaining channel links.

A) channel intermediary
B) wholesaler
C) sub-processor
D) gatekeeper
E) channel captain

Question 11

What should most likely be the goal of all marketing channel members?

A) moving products to retailers
B) expanding sales territories
C) reducing distribution errors
D) satisfying end-users
E) promoting products

Question 12

A marketing channel strategy is a set of activities focused on designing and managing a marketing channel for the purpose of ________.

A) expanding a firm's position in niche markets
B) improving a firm's sustainable competitive advantage
C) minimizing difficulties with global distribution centers
D) evaluating marketing expenses in order to find cost savings
E) modifying the marketing mix to extend the product life cycle

Question 13

Manufacturers are LEAST likely to use intermediaries to:

A) negotiate terms of trade
B) manage production levels
C) transport products to customers
D) facilitate product orders and payments
E) sell products directly to final consumers

Question 14

What general term refers to middle channel members in the marketing channel?

A) intermediaries
B) manufacturers
C) distributors
D) brokers
E) agents

Question 15

All of the following are sorting functions performed by intermediaries EXCEPT ________.

A) building up an assortment of products for resale purposes
B) dividing stocks into smaller groups for easier handling
C) combining similar products from multiple sources
D) matching buyer product needs to retailer stocks
E) sorting and grouping products that are similar

Question 16

How do intermediaries most likely create utility for end-users?

A) negotiating financing terms with wholesalers
B) ensuring product availability and assortment
C) developing large stocks of similar products
D) creating timely promotional materials
E) offering convenient online tools

Question 17

Which statement is most likely true about a marketing channel system?

A) Firms in the marketing channel typically work independently.
B) Modifying a channel system is usually a simple, inexpensive task.
C) Marketing channels represent a very small portion of the world's business.
D) Most marketing channel systems are easily duplicated by other firms in an industry.
E) Efficient marketing channels reduce distribution costs and increase customer satisfaction.

Question 18

Which of the following tasks would LEAST likely be conducted by a merchant wholesaler?

A) taking possession of inventory
B) producing private-label goods
C) arranging customer financing
D) promoting new products
E) storing inventory

Question 19

Compu-Tech is an information technology firm that handles customer orders and payments for a variety of online retailers.Compu-Tech is most likely a(n)________.

A) specialized intermediary
B) merchant wholesaler
C) retail intermediary
D) specialty store
E) distributor

Question 20

What is the most likely outcome of an ineffective marketing channel strategy?

A) limited product reach
B) too many channel captains
C) quick product line maturation
D) excessive gatekeeper control
E) wasted marketing mix components

Question 21

Which of the following is most likely an example of a firm engaging in disintermediation?

A) sorting products for suppliers
B) selling products directly online
C) reducing promotional activities
D) scheduling product shipments
E) replenishing inventory automatically

Question 22

Which term refers to activities such as physically distributing products,engaging in after-sales service,and handling customer payments?

A) segmentation
B) disintermediation
C) channel strategies
D) channel functions
E) supply chain management

Question 23

The benchmarking stage of the marketing channel strategy framework focuses on ________.

A) establishing the power and dependence of channel members
B) creating an environment for executing the best strategy
C) identifying best practices in well-developed systems
D) analyzing the needs of end-users and producers
E) lowering channel system costs

Question 24

Which channel function almost always moves up the channel from the end-user to the producer?

A) negotiation
B) ownership
C) financing
D) payment
E) risk

Question 25

Which channel function almost always moves forward from the producer to the consumer?

A) negotiation
B) promotion
C) financing
D) payment
E) risk

Question 26

Which of the following would be the best method for reducing channel conflict?

A) altering channel promotions
B) expanding channel contacts
C) applying channel power
D) managing channel logistics
E) restructuring the channel

Question 27

The greatest number of contact lines most likely involves manufacturers selling products ________.

A) directly to retailers
B) through one wholesaler
C) directly to intermediaries
D) through two wholesalers
E) through three wholesalers

Question 28

Which of the following indicates the proportional value added to the total channel's performance by each channel member?

A) make-or-buy channel analysis
B) segmentation analysis
C) service outputs matrix
D) gap analysis template
E) normative profit share

Question 29

All of the following are key channel elements that must be managed to ensure that a channel system runs smoothly EXCEPT ________.

A) power
B) conflict
C) logistics
D) segments
E) relationships

Question 30

All of the following channel functions can move either upward or downward in the marketing channel EXCEPT ________.

A) information sharing
B) negotiating
C) financing
D) risk taking
E) ordering

Question 31

Which term refers to value-added services and products created by channel members and consumed by end-users?

A) wholesale bulk goods
B) convenience products
C) bundled services
D) normative shares
E) service outputs

Question 32

Which of the following is LEAST likely a carrying cost associated with a retailer taking title of a manufacturer's products?

A) storage
B) breakage
C) integration
D) depreciation
E) obsolescence

Question 33

Which term refers to reducing the use of intermediaries?

A) allocation
B) facilitation
C) routinization
D) reintermediation
E) disintermediation

Question 34

Which term refers to splitting a market into groups of end-users?

A) product promotion
B) search facilitation
C) channel integration
D) segmentation
E) routinization

Question 35

Which factor would LEAST likely be considered in the implementation stage of the marketing channel strategy framework?

A) channel member power and dependence
B) channel partner relationships
C) end-user segmentation
D) channel policies
E) logistics

Question 36

Which of the following is most likely a true statement about channel functions?

A) The order in which channel functions occur is the same for all industries and products.
B) All channel members must participate in every channel function to have full efficiency.
C) All channel functions move in a downward direction from the producer to the end-user.
D) Specialization tends to reduce marketing channel efficiency because of increased members.
E) The performance of certain channel functions correlates with other channel functions.

Question 37

Which channel function most likely plays a role in all value-added activities of a marketing channel system?

A) information sharing
B) promotion
C) negotiation
D) payment
E) ordering

Question 38

Martin,a channel manager for an appliance manufacturer,needs to evaluate the importance of each channel function in terms of cost and value.Martin also needs to determine the proportion of each channel function performed by each channel member.Which of the following should Martin most likely use for this task?

A) efficiency template
B) cost-equity matrix
C) normative profit metric
D) segmentation grid
E) gap analysis template

Question 39

Which of the following most likely occurs in the first stage of the marketing channel strategy framework?

A) comparing different channel structures and strategies
B) segmenting the market based on end-users' needs
C) identifying best practices in channel structures
D) examining potential channel conflicts
E) developing policies and practices

Question 40

Katherine,a channel manager with a shoe manufacturer,recently learned that prices in the channel are higher than desired by end-users.Katherine most likely used a(n)________ to determine this information.

A) normative profit share
B) gap analysis template
C) segmentation grid
D) efficiency template
E) make-or-buy channel analysis

Question 41

Channel captains are typically manufacturers of branded products.

Question 42

Since intermediaries usually increase costs for producers and lower value for consumers,a decentralized system of exchange is more efficient than a centralized network.

Question 43

How does the routinization of transactions benefit both buyers and sellers?

Question 44

Discuss the relationship between channel power and channel conflict.What are the causes and effects of channel conflict?

Question 45

What are service outputs? Why is it important for channel managers to analyze the service output demands of market segments?

Question 46

Differentiate between the three general types of intermediaries.

Question 47

What are the nine universal channel functions? What direction does each function move? Why do some channel functions move in both directions?

Question 48

In the context of a marketing channel,the relationship with an end-user is considered finished once a product or service has been distributed.

Question 49

Specialization increases channel efficiency,but it also requires close cooperation and coordination in channel operations.

Question 50

Channel logistics relates to processing and tracking factory goods throughout the marketing channel.