Question 1

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?
A) It increases customer loyalty.
B) It provides the producer with greater control over operations.
C) It reduces the amount of direct customer interaction.
D) It lowers the producer's costs and prices.
E) It ensures greater information security.

Accepted Answer

Shifting functions to intermediaries can help lower the producer's costs and prices as intermediaries may have economies of scale, expertise, or resources that the producer lacks, allowing them to perform the function more efficiently and at a lower cost. This cost reduction can then be passed on to customers in the form of lower prices, making the producer more competitive.

Question 2

Identify the channel function that constitutes both backward and forward flow.
A) obtaining financing
B) storage of physical goods
C) persuasive communication
D) movement of physical goods
E) overseeing actual transfer of ownership

Accepted Answer

A

Question 3

Cortron Consultants provides business consulting services for startups. It helps customers design their supply chains by first evaluating the target market and then proceeds backward from that point. What is this strategy of reverse design called? Why is it beneficial?

Accepted Answer

This strategy is called demand chain planning. This helps the companies have a clear focus on the target market.

Question 4

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, the brand choice is made before going to the store, and the product benefits need to be communicated to the consumer, often through advertising directly aimed at end consumers to create demand, thus "pulling" the product through the distribution channels.

Question 5

A computer manufacturing company allows customers to shop in their preferred way. For example, they can gather information online or in the store; they can place orders online or by phone or purchase in a store. They can have orders delivered to their home or arrange to pick them up from a convenient retail location. Which of the following terms best represents this practice?
A) omnichannel marketing
B) mass customization
C) online personalization
D) push strategy
E) internal marketing

Accepted Answer

Omnichannel marketing is a method of providing a seamless shopping experience for customers across all available channels, including online, in-store, phone, and more. This practice allows the customer to have more control over their shopping experience and to choose the most convenient way for them to interact with the company.

Question 6

Which of the following is the most accurate description of a value network?
A) a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings
B) a system of organizations and resources involved in moving a product from supplier to customer
C) an arrangement whereby an organization transforms inputs into finished goods
D) a network that allows an organization to take the finished products to the end-users
E) a communication network that allows an organization to transfer information to end-customers

Accepted Answer

A value network refers to the network of organizations and partnerships that a firm creates to source, augment, and deliver its offerings. It involves a wide range of stakeholders including suppliers, distributors, customers, and other partners who work together to create and distribute value in the marketplace. Option A accurately describes this concept, while the other options are either too narrow or focus on different aspects of the value creation process.

Question 7

Which of the following is an example of a zero-level channel?
A) A manufacturer takes online orders from customers and ships the products to them.
B) An organization uses a combination of direct salespeople and sales agencies to increase sales.
C) A manufacturer sells its products through wholesalers and retailers.
D) A manufacturer sells its products through chains of supermarkets and other large sellers.
E) A large company forms alliances with smaller companies to increase sales coverage.

Accepted Answer

A zero-level channel involves direct sales from the manufacturer to the end consumer, without the involvement of any intermediaries. Option A describes a scenario where the manufacturer sells directly to customers through online ordering, making it an example of a zero-level channel.

Question 8

Which of the following channel functions constitute only a backward flow?
A) movement of physical goods
B) placing orders with suppliers
C) persuasive communication
D) storage of physical goods
E) overseeing actual transfer of ownership

Accepted Answer

Placing orders with suppliers is a function that involves the flow of information and requests from the retailer to the supplier, and does not involve the physical movement of goods or the transfer of ownership. Therefore, it constitutes only a backward flow in the channel.

Question 9

Using the push strategy is most appropriate when ________.
A) consumers are able to perceive differences between brands
B) the product being sold is an impulse item
C) there is high brand loyalty for the product
D) the product is a high involvement purchase
E) consumers choose the brand before they go to the store

Accepted Answer

The push strategy is most appropriate when the product being sold is an impulse item. This is because the push strategy relies on pushing the product to the consumer through promotions, advertising, and personal selling, rather than waiting for the consumer to come to the product. Impulse items are often purchased on the spot, so the push strategy can be effective in creating awareness and generating sales in the moment.

Question 10

Explain the concept of a value network.

Accepted Answer

The answer of Explain the concept of a value network....

Question 11

Companies should first think about the target market and then design the supply chain backward from that point. This strategy is called ________ planning.
A) demand chain
B) resource
C) external channel
D) materials
E) strategic business

Accepted Answer

Demand chain planning involves starting with the target market and working backward in the supply chain to determine the resources and materials needed to meet that demand. This ensures that the company is meeting the needs of its customers and optimizing its supply chain to fulfill those needs.

Question 12

Door-to-door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores are examples of ________.
A) zero-level channels
B) jobbers
C) wholesalers
D) manufacturer's representatives
E) consumers

Accepted Answer

These examples are all direct or zero-level channels, meaning they involve a direct interaction between the seller and the consumer.

Question 13

Sweet Treats is a startup confectionery manufacturer that sells chocolates, toffees, marshmallows, jelly candies, and so on. Should the firm adopt a push or a pull strategy? Explain your answer.

Accepted Answer

The answer of Sweet Treats is a startup confectionery manufacturer...

Question 14

________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.
A) Marketing channels
B) Interstitials
C) Communication channels
D) Sales territories
E) Marketing terrains

Accepted Answer

Marketing channels are the sets of interdependent organizations that work together to make a product or service available for use or consumption. These channels include intermediaries such as wholesalers, retailers, agents, and brokers, who work together to ensure that the product or service reaches the end customer. Communication channels and sales territories are more focused on the communication and sales aspects of marketing, while interstitials and marketing terrains are not recognized marketing terms.

Question 15

Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and entices a famous athlete to endorse the product. This is an example of a ________.
A) trade promotion
B) reverse flow
C) push strategy
D) pull strategy
E) backward flow

Accepted Answer

This is an example of a pull strategy, as the advertising campaign and endorsement from a famous athlete are aimed at attracting consumers to seek out and purchase the new customizable running shoes.

Question 16

The Norticon Group provides and manages computers and network systems for businesses and communities. Norticon sells its products through various means. It uses its sales force to sell to large customers and telemarketing to sell to smaller customers. The company also sells its products via the Internet. Briefly explain the marketing approach being used by the company.

Accepted Answer

The answer of The Norticon Group provides and manages computers...

Question 17

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 companies design their supply chain by first identifying the demands of their target market and then work backward from that point to fulfill those demands efficiently.

Question 18

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?
A) personalization strategy
B) tailoring strategy
C) push strategy
D) pull strategy
E) consumer promotion strategy

Accepted Answer

The manufacturer is using a push strategy, which involves using the sales force and trade promotions to push (or promote) the product to the end user through the distribution channel. This strategy focuses on building relationships with retailers and wholesalers to get them to carry and promote the product to their customers.

Question 19

When is a pull strategy appropriate?
A) when there is low brand loyalty
B) when consumers are able to perceive differences between brands
C) when brand choice is made in the store
D) when it is a low involvement purchase
E) when the product is an impulse item

Accepted Answer

The answer of When is a pull strategy appropriate?
A) when...

Question 20

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 include all the steps a product or service goes through until it reaches the end user, ranging from distribution to advertising and promotion.

Quiz 12: Designing and Managing Integrated Marketing Channels

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

Identify the channel function that constitutes both backward and forward flow.

Cortron Consultants provides business consulting services for startups. It helps customers design their supply chains by first evaluating the target market and then proceeds backward from that point. What is this strategy of reverse design called? Why is it beneficial?

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.

Which of the following is the most accurate description of a value network?

Which of the following is an example of a zero-level channel?

Which of the following channel functions constitute only a backward flow?

Using the push strategy is most appropriate when ________.

Explain the concept of a value network.

Companies should first think about the target market and then design the supply chain backward from that point. This strategy is called ________ planning.

Door-to-door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores are examples of ________.

Sweet Treats is a startup confectionery manufacturer that sells chocolates, toffees, marshmallows, jelly candies, and so on. Should the firm adopt a push or a pull strategy? Explain your answer.

________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

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.

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

When is a pull strategy appropriate?

Marketing channels are the set of pathways a product or service follows after production, culminating in purchase and consumption by the final end user.