Question 1

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 manufacturer is providing incentives to distributors to carry and promote the product. The offer of a free refrigerator is a way to push the product into the market through the supply chain.

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 are sets of interdependent organizations participating in the process of making a product or service available for use or consumption. These organizations work together to move a product or service from the producer to the end user. This includes manufacturer, wholesalers, distributors, and retailers, among others.

Question 3

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 pushing the products to the end users through the sales force and trade promotions. This is different from a pull strategy, which involves creating demand for the product among end users and pulling them into stores to purchase it.

Question 4

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 5

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 involves bringing together different distribution channels to provide a seamless and consistent customer experience. In this case, the online ordering system is integrated with the retail store pick-up option to provide a convenient and efficient customer experience.

Question 6

Explain the concept of a value network.

Accepted Answer

The answer of Explain the concept of a value network....

Question 7

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 involves designing the supply chain based on the needs and demands of the target market. This helps ensure that products are delivered efficiently and effectively to meet customer expectations.

Question 8

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 is the strategy where companies first identify their target market and then design their supply chain backward from that point. This helps to ensure that the supply chain is aligned with the demand and avoids the cost and inefficiencies of overstocking or understocking products.

Question 9

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

Marketing channels are indeed the set of pathways a product or service follows from production to consumption by the final end user.

Question 10

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 11

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

Accepted Answer

A value network refers to the system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings. This includes all the entities involved in the production and delivery of a product or service, such as suppliers, distributors, and customers.

Question 12

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 13

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 14

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 or hybrid approach to marketing by utilizing different sales channels for different types of accounts.

Question 15

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 16

Using the push strategy is most appropriate when ________.

Accepted Answer

The push strategy is most effective when selling impulse items, as it involves pushing the product onto consumers through various distribution channels, such as promotions, sales, and advertising. This strategy is typically used for products that consumers may not have previously considered or did not have a need for, such as snacks, beverages, and small convenience items. Therefore, option B is the best choice.

Question 17

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 because the advertising campaign and endorsement are designed to create consumer demand for the product, pulling them into stores to purchase the customizable running shoes.

Question 18

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 19

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 20

When is a pull strategy appropriate?

Accepted Answer

The answer of When is a pull strategy appropriate?
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Quiz 17: Designing and Managing Integrated Marketing Channels