Question 1

Channel objectives should never be stated in terms of service outputs and levels but instead stated in terms of dollar costs.

Accepted Answer

Channel objectives should be stated in terms of service outputs and levels, as these are the factors that directly affect the customer experience and satisfaction. Dollar costs are important, but they should not be the sole focus of channel objectives.

Question 2

The traditional system of franchise is the manufacturer-sponsored wholesaler franchise.

Accepted Answer

The traditional system of franchise includes manufacturer-sponsored retail franchise systems and wholesaler-sponsored retail franchise systems, not specifically manufacturer-sponsored wholesaler franchise.

Question 3

Wholesalers and retailers who take title to and possession of goods and are called merchants.

Accepted Answer

Merchants are defined as wholesalers or retailers who take title to and possession of goods.

Question 4

A manufacturer selling a physical product and related services might require three channels: a sales channel, a delivery channel, and a service channel.

Accepted Answer

A manufacturer selling a physical product and related services may require a sales channel to sell the product, a delivery channel to ensure the product is delivered to the customer, and a service channel to provide any necessary support or maintenance for the product.

Question 5

Facilitators neither negotiate contracts or prices nor take title or possession of the goods but facilitate the orderly transfer of product from producer to consumer.

Accepted Answer

Facilitators only assist in the transfer of goods and do not engage in negotiations or take ownership of the products.

Question 6

A push strategy involves the manufacturer using advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it.

Accepted Answer

A push strategy involves the manufacturer pushing the product through marketing channels to the intermediaries (retailers and wholesalers) who then sell it to consumers, rather than directly stimulating consumer demand.

Question 7

In one type of contractual VMS, retailers take the initiative and organize a new business entity to carry on wholesaling and possibly some production.

Accepted Answer

This type of contractual VMS is called retailer-sponsored cooperatives, where retailers form a new business entity to carry out wholesaling and production activities.

Question 8

Thinking of the target market first, then designing the supply chain backward from that point is called demand chain planning.

Accepted Answer

Demand chain planning is a customer-centric approach to supply chain management, which involves starting with the customer demand and then designing the supply chain to meet that demand. It is a reverse approach to traditional supply chain planning, which starts with the product and then works backward to the customer.

Question 9

A pull strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to the end users.

Accepted Answer

A pull strategy involves the manufacturer focusing on creating demand for the product among consumers, so that consumers demand the product from retailers, who in turn demand it from the manufacturer. This is typically achieved through advertising and consumer promotion activities, rather than focusing primarily on the sales force and trade promotion to intermediaries.

Question 10

Delegating some of the selling functions to intermediaries' means loss of control over how and to whom the products are sold.

Accepted Answer

Delegating selling functions to intermediaries means that the company gives up control over the sales process, including how and to whom the products are sold. The intermediaries may make decisions that are not aligned with the company's goals or values, which can lead to a loss of control over the sales channel.

Question 11

Designing a marketing channel involves analyzing customer needs, establishing channel objectives, and identifying cost saving channels, identifying key channel partners, and evaluating all alternatives.

Accepted Answer

The answer of Designing a marketing channel involves analyzing customer...

Question 12

The ability to order a product online and pick it up at a convenient retail location is an example of the consumers' expectations for channel integration.

Accepted Answer

The statement is true, as consumers now expect seamless integration between different sales channels, including online and traditional retail. The ability to order online and pick up in-store is one example of this integration.

Question 13

A system of partnerships and alliances that a firm creates to source, augment, and deliver its offering is called a demand chain.

Accepted Answer

A system of partnerships and alliances that a firm creates to source, augment, and deliver its offering is actually called a supply chain.

Question 14

Intermediaries normally achieve superior effectiveness and efficiency in making goods widely available and accessible to target markets.

Accepted Answer

Intermediaries, such as wholesalers, retailers, and distributors, provide value by efficiently and effectively distributing products to target markets. They have the necessary networks, infrastructure, and expertise to reach a broader audience than manufacturers could on their own.

Question 15

Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

Accepted Answer

Marketing channels, also known as distribution channels, involve a series of organizations and intermediaries that help bring a product or service from the manufacturer to the end consumer. These channels can include wholesalers, retailers, agents, brokers, and other entities that work together to provide a smooth and efficient flow of goods and services.

Question 16

All channel functions need not be performed for the channel to operate efficiently.

Accepted Answer

The answer of All channel functions need not be performed...

Question 17

A hybrid channel is one in which the manufacturer uses two or more marketing channels to reach customer segments.

Accepted Answer

A hybrid channel strategy involves using two or more marketing channels simultaneously to reach different customer segments or to optimize distribution and marketing efficiency.

Question 18

Agents are those intermediaries that negotiate contracts or prices on the producer's behalf.

Accepted Answer

Agents are hired by producers to represent them and negotiate deals on their behalf. They can be individuals or organizations that specialize in a particular area such as sports, music or entertainment. Agents typically work on a commission basis, which means they earn a percentage of the deals they negotiate for their clients.

Question 19

A zero-level channel consists of a manufacturer selling directly to one retailer.

Accepted Answer

A zero-level channel, also known as a direct marketing channel, consists of a manufacturer selling directly to the final customer, with no intermediaries involved.

Question 20

The backword flow channels are not important except in the cases of recycling, refurbishing, and disposal.

Accepted Answer

Backward flow channels, also called reverse logistics, are important not only in recycling, refurbishing, and disposal but also in product returns, warranty repairs, and end-of-life management. They can help reduce waste, recover value, and promote sustainability in the supply chain.

Quiz 15: Designing and Managing Integrated Marketing Channels