Question 1

After a company has chosen a channel alternative,individual intermediaries must be ________,trained,motivated,and evaluated.

Accepted Answer

Intermediaries must be selected before they can be trained, motivated, and evaluated.

Question 2

________ can be defined as the ability to alter channel members' behavior so that they take actions they would not have taken otherwise.

Accepted Answer

Channel power refers to the ability of a channel member to control or influence others in the channel. This includes the ability to alter the behavior of other members, such as getting them to take actions they wouldn't have taken otherwise. Marketing, superior products, channel relationships, and channel concerns may all play a role in channel dynamics but do not specifically refer to the ability to alter behavior.

Question 3

Each channel alternative needs to be evaluated against ________,control,and adaptive criteria.

Accepted Answer

Channel alternatives are typically evaluated against economic criteria, which involve assessing the cost-effectiveness and profitability of the channel.

Question 4

________ distribution consists of the manufacturer placing his goods and services in as many outlets as possible.

Accepted Answer

Intensive distribution is a strategy where a manufacturer tries to place their products in as many outlets as possible, making it easily available to customers. This strategy is commonly used for fast-moving consumer goods like snacks, beverages, and toiletries. It requires a large network of wholesalers and retailers to ensure the products are widely available.

Question 5

A(n)________ consists of independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

Accepted Answer

A contractual VMS is a type of vertical marketing system in which independent firms at different levels of production and distribution come together on a contractual basis to integrate their programs to achieve more economies of scale or sales impact than they could achieve alone. This type of VMS is characterized by a formal contract that outlines the terms and conditions of the agreement between the participating firms. Examples of contractual VMS include franchise systems and dealer networks.

Question 6

Companies deciding on the number of intermediaries to use at each channel level have three strategies available to them.They can use exclusive distribution,________ distribution,and intensive distribution.

Accepted Answer

Selective distribution allows for a balance between control and market reach. By working with a limited number of intermediaries, companies can have some control over how their products are marketed and sold, while still reaching a significant market. This strategy also allows companies to maintain some level of exclusivity and differentiation for their products. Extensive distribution, while reaching a larger market, may result in the loss of control and differentiation. Exclusive distribution may limit the market reach and potentially result in missed opportunities for sales. Intensive distribution may result in oversaturation of the market and lower profit margins. Therefore, selective distribution is the best choice.

Question 7

Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to ________.

Accepted Answer

By moving to more intensive distribution, manufacturers can increase their coverage and reach more customers, which in turn can increase their sales. This strategy can be particularly effective for manufacturers who are looking to grow their market share or compete more aggressively with other brands.

Question 8

One of the control issues of using a sales agency as a channel partner is that the sales agency is an independent firm seeking to ________.

Accepted Answer

A sales agency is a profit-seeking entity and its main objective is to maximize its profits. Therefore, this makes it a control issue when using them as a channel partner as they may prioritize their own profits over the interests of the company they are representing.

Question 9

The five types of power available to the producer to elicit cooperation from channel members includes all of the following EXCEPT ________ power.

Accepted Answer

The five types of power available to the producer to elicit cooperation from channel members are expert, coercive, referent, reward, and legitimate (position) power. Therefore, the choice that is NOT included in the list is B (position power).

Question 10

Regarding distribution systems,one of the most difficult decision that a firm must make at some time involves ________ the channel strategy.

Accepted Answer

Revising the channel strategy can be a difficult decision for a firm, but it can also lead to improved efficiency, effectiveness, and profitability in the distribution system. Discontinuing or scrapping the channel strategy altogether could potentially harm the firm's relationships with existing customers, while decreasing or increasing the number of members in the channel may not necessarily address the underlying issues with the distribution system. Therefore, revising the channel strategy is the best choice, as it allows the firm to evaluate and adjust specific aspects of the distribution system to better align with its objectives and market conditions.

Question 11

Which of the following is a type of contractual VMS

Accepted Answer

Franchise organizations are a type of contractual VMS where a company (the franchisor) allows independent owners (the franchisees) to use its trademark, products, and business systems in exchange for a fee and a percentage of profits. This allows for uniformity and consistency across different locations, while also giving the franchisor control over the brand image and operations. The other options (specialty stores, kiosk stores, and catalog stores) are types of non-contractual VMS, where the retailers have more independence in their operations and product offerings.

Question 12

It is important for the company to select its channel members carefully because to the customers,the channels _________ the company.

Accepted Answer

Channels are a crucial interface that connects the company with the customer. They represent the company and deliver its products and services to the customers. The way channels behave, their reputation, and customer service affect the customers' perception of the company. Therefore, it is crucial to select the channels carefully to ensure that they align with the brand's values and provide a positive customer experience.

Question 13

In competitive markets with low entry barriers,the optimal channel structure will inevitably ________ over time.

Accepted Answer

In low entry barrier markets, competition is high and firms constantly try to differentiate themselves from their rivals. This can lead to changes in the way goods are delivered to customers. As a result, the optimal channel structure may change over time, resulting in a need for firms to adapt to the new situation.

Question 14

The main elements in the "trade-relations mix" are price policies,conditions of sale,________,and specific services to be performed by each party.

Accepted Answer

The answer of The main elements in the "trade-relations mix"...

Question 15

When the producer wants to maintain control over the service level and outputs offered by the resellers,it most likely will use ________ distribution.

Accepted Answer

Exclusive distribution allows the producer to have complete control over the distribution of their products. The producer selects a limited number of retailers or resellers with which to work, and these resellers are contractually bound to adhere to specific guidelines and service levels set by the producer. This ensures that the service level and outputs offered by the resellers are consistent with the producer's standards.

Question 16

A(n)________ comprises the producer,wholesaler(s),and retailers(s)acting as a unified system.

Accepted Answer

A vertical marketing system (VMS) is a group of producers, wholesalers, and retailers that work together to provide products or services to consumers. The VMS is a unified system because the members coordinate their efforts and work together to achieve common goals. There are three types of VMS: corporate, contractual, and administered. In a corporate VMS, a single owner controls all levels of the distribution channel. In a contractual VMS, the members are bound by contracts and legal agreements. In an administered VMS, the dominant member is able to coordinate the activities of the other members without formal contracts or ownership.

Question 17

A conventional marketing channel comprises a(n)________,wholesaler(s),and retailer(s),each acting in his own self-interest.

Accepted Answer

A conventional marketing channel typically starts with an independent producer who manufactures the product before it moves to wholesalers and retailers.

Question 18

A channel alternative is described by three elements: the types of available business intermediaries,the number of intermediaries needed,and the ________.

Accepted Answer

The first two elements of a channel alternative are the types and number of intermediaries needed. The third element, therefore, must be related to the terms and responsibilities of each channel member. This could include factors such as pricing, marketing activities, and distribution responsibilities. The other options are not relevant to the description of a channel alternative.

Question 19

By granting ________,the producer hopes to obtain more dedicated and knowledgeable selling.

Accepted Answer

By granting exclusive distribution, the producer limits the number of intermediaries who can sell their product, and only selects those who are dedicated and knowledgeable enough to represent the product effectively. This can lead to better control over the brand image and customer experience, and may result in more effective selling overall.

Question 20

With ________,the company does not need to worry about too many outlets; it can gain adequate market coverage with more control and less cost that intensive distribution.

Accepted Answer

Selective distribution allows companies to have control over the number of outlets while still providing adequate market coverage. This strategy is useful when a company wants to maintain a certain level of exclusivity for its product while also keeping costs low. Intensive distribution would require too many outlets, which can lead to less control over branding and potentially higher costs. Extensive distribution may not provide the same level of exclusivity desired by the company. Random distribution and exclusive distribution are not suitable options for most companies.

Quiz 15: Designing and Managing Integrated Marketing