Question 1

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

Accepted Answer

Demand chain planning is a strategy where companies start by identifying the customer's demand for their products or services and then design their supply chain backward from that point to meet the demand efficiently.

Question 2

________ 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 set of interdependent organizations involved in bringing a product or service to market. They include distributors, wholesalers, retailers, and other intermediaries who facilitate the exchange process between the producer and the final consumer. The marketing channel plays a crucial role in the success of a product or service by ensuring that it is available in the right place at the right time and at the right price.

Question 3

Explain the concept of a value network.

Accepted Answer

A company can be seen as being at the center of a value network, a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings. A value network includes a firm's suppliers and its suppliers' suppliers, and its immediate customers and their end customers. The value network includes valued relationships with others such as university researchers and government approval agencies. A company needs to orchestrate these parties in order to deliver superior value to the target market.
Managing a value network means making increasing investments in information technology (IT) and software. Firms have introduced supply chain management (SCM) software and invited such software firms as SAP and Oracle to design comprehensive enterprise resource planning (ERP) systems to manage cash flow, manufacturing, human resources, purchasing, and other major functions within a unified framework.

Question 4

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 incentivizing its intermediaries (distributors) to carry the product by offering them a free refrigerator. This helps push the product into the market through the intermediaries.

Question 5

A merchant is a(n) ________ in the marketing channel.

Accepted Answer

A merchant is typically a wholesale intermediary who purchases products in bulk from manufacturers and sells smaller quantities to retailers or directly to customers.

Question 6

When is a pull strategy appropriate?

Accepted Answer

A pull strategy is appropriate when consumers can perceive differences between brands, as it relies on creating demand at the consumer level, encouraging them to seek out the brand actively.

Question 7

What are marketing channels? Briefly explain some of the different types of intermediaries.

Accepted Answer

The answer of What are marketing channels? Briefly explain some...

Question 8

Sweet Treats is a startup confectionery manufacturer that sells chocolates, toffees, marshmallows, jelly candies, and so on. Should the firm adopt a push or a pull strategy? Explain your answer.

Accepted Answer

The answer of Sweet Treats is a startup confectionery manufacturer...

Question 9

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

Accepted Answer

Demand chain planning begins with identifying the needs and wants of the target market and then works backward to design a supply chain that meets those demands. This approach ensures that the company is focused on meeting customer needs and can be more responsive to changes in demand.

Question 10

Using the push strategy is most appropriate when ________.

Accepted Answer

The push strategy is most appropriate when the product being sold is an impulse item.

Question 11

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

Channel integration refers to the process of providing customers with a seamless shopping experience across all available channels. In this case, the company is integrating their online and retail channels by allowing customers to place orders online and pick them up from a physical location, creating a convenient and efficient shopping experience.

Question 12

A pull strategy is particularly appropriate when there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item, and product benefits are well understood.

Accepted Answer

A pull strategy is more effective when there is high brand loyalty, and the product's benefits need to be communicated to the consumer, encouraging them to actively seek out the product, rather than making an impulse decision in the store.

Question 13

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

Accepted Answer

A value network refers to a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings. It goes beyond just the movement of a product and encompasses all the organizations and resources involved in creating value for the customer. This includes suppliers, distributors, retailers, and other stakeholders who contribute to the value chain.

Question 14

Marketing channels are the set of pathways a product or service follows after production, culminating in purchase and consumption by the final end user.

Accepted Answer

This statement accurately describes what marketing channels are.

Question 15

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

The manufacturer is using a push strategy which involves using the sales force and trade promotions to push their products to end users. This strategy focuses on promoting the product to retailers and other intermediaries to convince them to promote and sell the product to consumers.

Question 16

Sales agents and brokers are called facilitators in a marketing channel.

Accepted Answer

Sales agents and brokers are typically referred to as intermediaries or middlemen in a marketing channel, not facilitators.

Question 17

The Norticon Group provides and manages computers and network systems for businesses and communities. Norticon sells its products through various means. It uses its sales force to sell to large customers and telemarketing to sell to smaller customers. The company also sells its products via the Internet. Briefly explain the marketing approach being used by the company.

Accepted Answer

The answer of The Norticon Group provides and manages computers...

Question 18

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 entices a famous athlete to endorse the product. This is an example of a ________.

Accepted Answer

This is an example of a pull strategy, as the company is using advertising and endorsement from a famous athlete to create demand among customers for their new product.

Question 19

Garolds Stores operates as a low price retailer. It offers home fashion products, such as wall decor, frames, candles, bath and bedding products, furniture, home accents, and kitchen products. The firm has showrooms and retail stores across United States. Customers can buy products in three different ways: (1) they can place orders online and have the products shipped to their homes; (2) they can buy directly from the showrooms and retail outlets; or (3) they can place orders online and pick them up from the nearest showroom. What are the benefits that Garolds Stores could achieve by using various channels to sell to customers?

Accepted Answer

The answer of Garolds Stores operates as a low price...

Question 20

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 combination of sales force (personalized approach) and telemarketing (internal approach), which is a hybrid marketing strategy.

Quiz 17: Designing and Managing Integrated Marketing Channels