Question 1

Marketing channel design calls for analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.

Accepted Answer

This statement accurately describes the steps involved in designing a marketing channel.

Question 2

Vertical conflict occurs among firms at the same level of the channel.

Accepted Answer

Vertical conflict occurs between firms at different levels of the channel, such as between manufacturers and wholesalers, or between wholesalers and retailers. Conflict among firms at the same level of the channel is known as horizontal conflict.

Question 3

The number of products supplied indicates the length of a channel.

Accepted Answer

The number of products supplied does not necessarily indicate the length of a channel. The length of a channel is determined by the number of intermediaries involved in the distribution process between the producer and the consumer.

Question 4

The role of marketing intermediaries is to transform the assortments of products made by retailers into the assortments wanted by producers.

Accepted Answer

The statement is not correct. The role of marketing intermediaries is to help move products from producers to consumers by performing functions such as buying, selling, transportation, storage, financing, risk-bearing, and market information gathering. They do not transform retail assortments into producer assortments.

Question 5

A non-corporate VMS integrates successive stages of production and distribution under single ownership.

Accepted Answer

The answer of A non-corporate VMS integrates successive stages of...

Question 6

Marketing channel management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time.

Accepted Answer

This is a correct statement about marketing channel management.

Question 7

A company's channel decisions directly affect the prices of its products.

Accepted Answer

The channel decisions a company makes, such as the number and type of intermediaries used to distribute products, can impact the final price of the product. For example, if a company chooses to work with a high-end retailer with high markups, the final price of the product will be higher than if they worked with a discount retailer with lower markups. Therefore, channel decisions directly affect product pricing.

Question 8

Horizontal conflicts are conflicts between different levels of the same channel.

Accepted Answer

The answer of Horizontal conflicts are conflicts between different levels...

Question 9

In a vertical marketing system, two or more companies at one level join together to follow a new marketing opportunity.

Accepted Answer

In a vertical marketing system, two or more companies at different levels in the supply chain (e.g. manufacturer, wholesaler, retailer) work together to achieve a common objective, such as increasing efficiency, reducing costs, or improving distribution.

Question 10

Marketing logistics involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Accepted Answer

This is the correct definition of marketing logistics.

Question 11

Under the strategy of intensive distribution, the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.

Accepted Answer

Under the strategy of intensive distribution, the producer aims to make its products available through as many outlets as possible, reaching a wide range of customers. Therefore, there is no exclusive right given to a limited number of dealers.

Question 12

Disintermediation occurs when radically new types of channel intermediaries displace traditional ones.

Accepted Answer

Disintermediation is the process by which intermediaries are removed from a supply chain, commonly because of advancements in technology, such as e-commerce. This can lead to the creation of entirely new types of intermediaries that displace traditional ones.

Question 13

Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between
the firm and its customers.

Accepted Answer

Downstream marketing channel partners, such as wholesalers and retailers, do form a vital link between the firm and its customers.

Question 14

As a part of intensive distribution, dealers are expected to refrain from selling the products of the producers' competitors.

Accepted Answer

The answer of As a part of intensive distribution, dealers...

Question 15

In a direct marketing channel, the producer sells directly to the intermediaries, who in turn sell directly to the customers.

Accepted Answer

In a direct marketing channel, the producer sells directly to the customers, bypassing intermediaries.

Question 16

Producers use intermediaries because they create greater efficiency in making goods available to target
markets.

Accepted Answer

Intermediaries such as wholesalers, distributors, and retailers can help producers reach a larger customer base, provide storage and transportation solutions, and offer expertise in marketing and sales. This can result in greater efficiency and cost-effectiveness in getting products to target markets.

Question 17

A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the expense of the system as a whole.

Accepted Answer

This statement accurately describes a conventional distribution channel where each member of the channel operates independently and prioritizes their own profits.

Question 18

Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level.

Accepted Answer

This statement accurately defines channel levels in a marketing context. Each layer of intermediaries, such as wholesalers or retailers, plays a role in getting the product to the end consumer.

Question 19

Multichannel marketing occurs when a single firm sets up two or more marketing channels to reach one or more customer segments.

Accepted Answer

Multichannel marketing involves using multiple channels to reach customers, which can include online, offline, and direct marketing channels. The goal is to provide customers with multiple touchpoints, allowing them to engage with the company in ways that are convenient and effective for them. By doing so, companies can increase their reach and effectiveness, ultimately leading to greater success and profitability.

Question 20

Producers of convenience products and common raw materials typically seek exclusive distribution, a strategy in which they stock their products in as many outlets as possible.

Accepted Answer

Producers of convenience products and common raw materials typically seek intensive distribution, a strategy in which they stock their products in as many outlets as possible. Exclusive distribution is more common for luxury or premium products.

Quiz 12: Marketing Channels: Delivering Customer Value