Question 1

What criteria should a firm consider before choosing a channel alternative?

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Question 2

How does a company determine its channel objectives? What factors influence the channel objectives of a company?

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Question 3

Moving products and materials from suppliers to the factory is known as ________ logistics.

Accepted Answer

Inbound logistics refers to the movement of raw materials and goods from suppliers to the manufacturing site or company. Outbound logistics refers to the movement of finished products from the factory or company to the customers. Reverse logistics refers to the movement of goods from customers back to the company, such as for returns or repairs. Downstream logistics refers to the movement of goods downstream in the supply chain, towards the end customer. Inventory logistics refers to the management of inventory levels and stock movements within the company or supply chain. Therefore, the correct choice for moving products and materials from suppliers to the factory is inbound logistics.

Question 4

Exclusive dealing that creates a monopoly comes under the scope of the Clayton Act of 1914.

Accepted Answer

The Clayton Act of 1914 prohibits exclusive dealing agreements that substantially lessen competition or tend to create a monopoly.

Question 5

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?

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Question 6

Full-line forcing is considered an illegal arrangement that violates the Clayton Act.

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Question 7

Which of the following is an advantage of exclusive dealing between a seller and a dealer?

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Question 8

Differentiate between intensive distribution, exclusive distribution, and selective distribution strategies. Provide examples of products that would be appropriate for each.

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Question 9

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Accepted Answer

Bateman Gray Motors has adopted the strategy of exclusive dealing with its dedicated dealers who only sell Bateman Gray's products at their outlets. This means that these dealers have a contractual agreement with the company to exclusively distribute its products and not carry products from any other competitor brands. This helps the company to control the distribution of its products, reduce competition, and maintain brand exclusivity in the market.

Question 10

When a seller requires that only certain dealers carry its products, its strategy is known as ________.

Accepted Answer

When a seller requires that only certain dealers carry its products, it is known as exclusive distribution. This involves limiting the number of wholesalers or retailers who can sell a particular product and can benefit the manufacturer by ensuring they have greater control over how the product is marketed and sold. It can also create an air of exclusivity around the product, which can be attractive to certain consumers.

Question 11

Marketing logistics involves getting the right product to the right customer in the right place at the right time profitably.

Accepted Answer

Marketing logistics focuses on the transportation, storage, and distribution of products to the right customers at the right time, and in the right place to maximize profitability, making the statement true.

Question 12

Describe the legal aspects of exclusive arrangements such as exclusive dealing and exclusive distribution.

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Question 13

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________.

Accepted Answer

This is an example of exclusive dealing, which is when a supplier restricts a distributor to carrying only its products or brands.

Question 14

Outbound logistics refers to moving ________.

Accepted Answer

Outbound logistics refers to the movement of products from the factory to resellers and ultimately to customers.

Question 15

What are the responsibilities of channel members?

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Question 16

In exclusive dealing, a producer may agree not to sell to other dealers in a given area.

Accepted Answer

In exclusive dealing, a producer agrees to sell only to one particular dealer in a given area (or multiple areas), and may agree not to sell to other dealers in that same area to maintain the exclusivity of their relationship with that dealer.

Question 17

How do companies generally manage and motivate their channel members? What technological tools are available to help with this task?

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Question 18

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as ________.

Accepted Answer

Supply chain management involves the management of upstream and downstream flows of materials, goods, and information among suppliers, the company, resellers, and final consumers. Marketing logistics and physical distribution are sub-components of supply chain management that focus on the movement of goods and information from the company to the final consumers. Distribution system management and full-line forcing are not directly related to supply chain management.

Question 19

Intensive distribution occurs when only one intermediary is used by a producer to sell all its products.

Accepted Answer

Intensive distribution is the opposite of exclusive distribution, where a producer limits the number of intermediaries and selects specific ones to sell its products. In intensive distribution, a producer uses multiple intermediaries, such as wholesalers, retailers, and agents, to reach as many customers as possible.

Question 20

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of the producer's merchandise.

Accepted Answer

Full-line forcing is a practice in which a producer requires a dealer to carry or sell its whole product line in exchange for the right to sell a popular product or brand. It's a type of vertical integration where a producer tries to maximize the distribution of its entire product line through one dealer. It can help in brand building, increasing distribution channels, and reducing competition. However, it can also lead to the restriction of dealer freedom and potential antitrust violations.

Quiz 10: Marketing Channels: Delivering Customer Value