Question 1

When products move through more than one marketing channel to reach different target markets, it is called dual distribution.

Accepted Answer

The answer of When products move through more than one...

Question 2

The producer-wholesaler-retailer-consumer distribution path is ideal for large companies with large budgets that can be used to train the wholesale sales force to sell their products most effectively.

Accepted Answer

The answer of The producer-wholesaler-retailer-consumer distribution path is ideal for...

Question 3

Product recalls and warranty repairs are examples of reverse channel marketing.

Accepted Answer

Reverse channel marketing refers to the flow of goods or services from the consumer back to the producer, such as in the case of product recalls or warranty repairs.

Question 4

Changing channel strategies can produce conflicts between established intermediaries and the new outlets for the products.

Accepted Answer

Changing channel strategies often involves adding or replacing intermediaries, which can cause tension and conflicts with existing ones who may feel threatened or see changes in their revenue streams.

Question 5

A product warranty that instructs the owner to return the product to the dealer for repair or service in the event of failure during the warranty period creates a dual distribution channel for that product.

Accepted Answer

A product warranty instructing the owner to return the product to the dealer for repair or service does not create a dual distribution channel; it specifies the after-sales service process. A dual distribution channel refers to a situation where a company uses more than one method to sell its products, such as selling directly to consumers and also through retailers.

Question 6

Lands' End products are sold through catalogues, online, and Sears retail stores.By providing three ways for the customer to purchase its products, Sears-owner of the Lands' End brand-is practising dual distribution.

Accepted Answer

This statement is true. Dual distribution refers to a company using multiple distribution channels to sell its products. In this case, Lands' End is sold through catalogs, online, and Sears retail stores, making it an example of dual distribution.

Question 7

When Murray Metal Products contracted to deliver subway trains to the Interborough Rapid Transit System, it probably utilized a shorter, more direct channel than would a consumer goods manufacturer selling nonperishable food products to a retailer.

Accepted Answer

Murray Metal Products, as a supplier of subway trains, likely had a direct channel to the Interborough Rapid Transit System, whereas a consumer goods manufacturer selling nonperishable food products would likely have a longer, more complex channel involving intermediaries such as wholesalers and retailers.

Question 8

Direct selling plays a significant role in business-to-business, but not consumer products marketing.

Accepted Answer

This statement is false. Direct selling can play a significant role in both business-to-business and consumer products marketing. Direct selling involves selling products or services directly to consumers or businesses through personal interactions, demonstrations, and other sales techniques, bypassing traditional retail channels. This approach can be effective for a wide range of products and industries, depending on factors such as the product complexity, target audience, and competitive landscape. Many companies use direct selling as part of their overall marketing strategy to build brand awareness, generate leads, and drive sales.

Question 9

An intensive distribution strategy suits items with narrow appeal across limited, well-defined groups of customers.

Accepted Answer

An intensive distribution strategy is designed for products with broad appeal across a wide audience, aiming for maximum market coverage by placing products in as many outlets as possible.

Question 10

A traditional indirect marketing channel is the so-called "party plan," pioneered by Tupperware and Avon.It uses several intermediaries that bring consumers together to shop for a variety of goods in one place.

Accepted Answer

The "party plan" is a direct marketing strategy, not an indirect one, as it involves selling products directly to consumers in a social setting without intermediaries.

Question 11

A manufacturer assigns national sales teams to sell to Walmart, Loblaws, Zellers, and other large retailers.Smaller retailers and wholesalers are sold through food brokers.In this situation, the manufacturer is utilizing dual distribution.

Accepted Answer

Dual distribution refers to a company using two or more different channels to distribute its products to different customer segments. In this case, the manufacturer is using two different channels - national sales teams for large retailers and food brokers for smaller retailers and wholesalers, which is an example of dual distribution.

Question 12

Business users prefer to deal directly with the manufacturer when purchasing most products, except routine supplies and other small items.

Accepted Answer

This is generally true as direct communication with the manufacturer ensures quality control, customization, and competitive pricing. However, for routine supplies and small items, users may find it more convenient and cost-effective to purchase from a third-party supplier.

Question 13

Highly technical products, pharmaceuticals, and products requiring installation and customization are most likely sold directly from the manufacturer to the customer.

Accepted Answer

This is because the manufacturer often has the specialized knowledge and expertise required to sell and install these types of products, and can also provide necessary technical support and training. Additionally, the manufacturer may want to maintain control over the distribution of their products to ensure quality and consistency.

Question 14

One of the reasons that reverse channels are becoming more important is because of environmental concerns and regulations.

Accepted Answer

Reverse channels, which involve the return of products from the end consumer to the manufacturer or distributor, can help reduce waste and promote sustainability. As environmental concerns and regulations become more pressing, the use of reverse channels is likely to become more important.

Question 15

Small manufacturers often use agents to approach wholesalers and business users.

Accepted Answer

Small manufacturers may not have the resources or connections to approach wholesalers and business users directly, so they often use agents to do so on their behalf. Agents can help small manufacturers expand their reach and find new customers.

Question 16

Companies with adequate financial, management, and marketing resources feel little need for help from marketing intermediaries.

Accepted Answer

Companies that have sufficient financial resources, experienced management teams, and well-established marketing strategies may not require the assistance of marketing intermediaries. Such intermediaries may be less valuable to these companies compared to smaller businesses or those looking to expand their reach. However, this is not always the case, and some larger companies may choose to partner with intermediaries to further strengthen their marketing efforts.

Question 17

Manufacturers of products that experience heavy volumes of repeat purchases find intermediaries to be less expensive, less time consuming, and more efficient.

Accepted Answer

Manufacturers that have products with high repeat purchase rates can benefit from intermediaries because they reduce the need for the manufacturer to constantly market and distribute their product. This can lead to cost savings, time savings, and increased efficiency in the distribution process.

Question 18

A business product with large unit sales, for which transportation accounts for only a small percentage of the total cost, is usually distributed using the producer-agent-business user channel.

Accepted Answer

In the case of a business product with large unit sales and low transportation costs, the producer-agent-business user channel is a cost-effective distribution strategy.

Question 19

Industrial distributors are brokers between the manufacturer and business user.The distributor will provide technical information and facilitate the order process, but title and possession transfer occur directly between the producer and the customer.

Accepted Answer

Industrial distributors often take possession of the products and hold title to them before selling them to the business user, acting as an intermediary in both the transaction and the physical flow of goods.

Question 20

Perishables, vending machine products, and highly technical equipment tend to have shorter distribution channels, while low-unit-cost nonperishables tend to be distributed through longer channels.

Accepted Answer

Perishables, vending machine products, and highly technical equipment require more specialized and immediate handling, which is achieved through shorter distribution channels. On the other hand, low-unit-cost nonperishables can be distributed through longer channels since they don't require as much specialized handling.

Quiz 11: Marketing Channels and Supply Chain Management