Question 1

Manufacturers can obtain greater control over the selling process by using a sales agency.

Accepted Answer

Manufacturers typically have less control over the selling process when using a sales agency because the agency operates independently and serves multiple principals, not just one manufacturer.

Question 2

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 3

Intensive distribution is becoming a mainstay for specialists looking for an edge in markets increasingly
driven by price.

Accepted Answer

Intensive distribution is a strategy used by manufacturers to get their products into as many outlets as possible. It is more commonly associated with mass-market products rather than specialists looking for an edge, as specialists often focus on selective or exclusive distribution to maintain a brand image or target specific market segments.

Question 4

An intensive distribution strategy serves well for products such as snack foods and soft drinks.

Accepted Answer

Intensive distribution is a strategy that involves making the product available in as many outlets as possible, to maximize its visibility and accessibility to consumers. This strategy works particularly well for products that are frequently purchased, have low unit prices, and are not strongly differentiated from similar products in their category. Examples of products that benefit from intensive distribution include snack foods, soft drinks, and other impulse purchases that consumers tend to buy frequently and on a whim.

Question 5

Products such as heating and cooling systems are usually sold and maintained by the company or by franchised dealers.

Accepted Answer

Heating and cooling systems are usually sold and maintained by the company or by franchised dealers.

Question 6

Channel power is the ability to alter channel members' behavior so they take actions they would not have taken otherwise.

Accepted Answer

Channel power is the ability of one channel member to influence the behavior of another channel member to take actions they would not have taken otherwise. This can be achieved through various means such as reward power, coercive power, expert power, referent power, or legitimate power.

Question 7

Intensive distribution relies on only some of the intermediaries willing to carry a particular product.

Accepted Answer

Intensive distribution aims to have the product available at as many outlets as possible, so it relies on all intermediaries in the distribution channel.

Question 8

All functions in a marketing channel use scarce resources and can be shifted among channel members.

Accepted Answer

This statement is true. All functions in a marketing channel use resources such as time, money, and personnel, and these resources can be allocated or shifted among channel members as needed. Effective channel management involves balancing these resources to optimize performance and achieve channel goals.

Question 9

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 10

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 the supply chain is designed based on the demands and needs of the target market. This approach helps companies to better forecast demand and align their supply chain activities accordingly to meet customer requirements.

Question 11

Add-on services such as credit, delivery, installation, and repairs provided by the marketing channel are referred to as service backup.

Accepted Answer

This is correct - services provided by the marketing channel are referred to as service backup.

Question 12

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 refer to the various stages a product goes through to reach its final destination, which is consumption by the end user. These stages may include distribution, promotion, pricing, and selling.

Question 13

A marketing channel overcomes the time, place, and possession gaps that separate goods and services from those who need or want them.

Accepted Answer

A marketing channel is designed to help bridge the gaps between goods and services and those who need or want them. It does this by providing a means for products to be distributed and sold to consumers no matter where they are located, what time of day it is, or how they prefer to pay for products. This helps to make buying and selling more seamless and convenient for both parties involved.

Question 14

After a company has chosen a channel system, it must select, train, motivate, and evaluate individual
intermediaries for each channel.

Accepted Answer

Once a channel system is chosen, the company must then focus on managing individual intermediaries within each channel. This includes selecting the right intermediaries, training them, motivating them to perform, and evaluating their performance.

Question 15

Lot size refers to the total number of units a channel can transmit from the manufacturer's place to the service outlet.

Accepted Answer

Lot size refers to the total quantity of goods produced or procured in a single batch. It is not specifically related to transmission from the manufacturer to the service outlet.

Question 16

Marketing channel functions such as storage and movement and communications constitute a backward flow of activities.

Accepted Answer

Marketing channel functions such as storage, movement, and communications primarily constitute a forward flow of activities, moving products from producers to consumers.

Question 17

The flow of materials to refurbish products for resale constitutes a reverse flow.

Accepted Answer

Reverse flow refers to the movement of materials or products in the opposite direction of the typical forward flow in the supply chain. Refurbishing products for resale involves the reverse flow of materials as they are sent back through the supply chain to be repaired or repurposed before being sold again.

Question 18

Distributors' territorial rights define the terms under which the producer will enfranchise other distributors.

Accepted Answer

Distributors' territorial rights specify the geographic areas where a distributor has the exclusive right to sell a product, and this often includes specifications on how other distributors can be added to the network.

Question 19

A zero-level marketing channel typically uses a wholesaler and a retailer.

Accepted Answer

A zero-level marketing channel, also known as a direct marketing channel, involves no intermediary levels; it allows manufacturers to sell products directly to consumers.

Question 20

When economic conditions are depressed, producers want to move goods to market using longer channels.

Accepted Answer

When economic conditions are depressed, producers typically want to move goods to market using shorter and more efficient channels in order to reduce costs and increase profit margins.

Quiz 15: Designing and Managing Integrated Marketing Channels