Question 1

Adding a wholesaler to the marketing channel for consumer goods is most common for:

Accepted Answer

Adding a wholesaler to the marketing channel for consumer goods is most common for low-cost, low-unit-value items because the cost of direct distribution from the manufacturer to retailers and ultimately to customers can be expensive for such products. By routing the products through wholesalers, manufacturers can achieve economies of scale by using larger shipments and negotiating better transportation rates.

Question 2

Pharmaceutical companies sell to hospitals and clinics directly.They market their products to large retail chains that distribute the medicines to their stores across the nation.They also sell to drug wholesalers that sell to the remaining independent drugstores in Canada.What method of distribution is used by pharmaceutical companies?

Accepted Answer

Pharmaceutical companies use a multichannel distribution strategy, which involves selling their products through various channels such as selling directly to hospitals and clinics, marketing to large retail chains, and selling to drug wholesalers who then distribute the products to independent drugstores. This approach allows the companies to reach a wider range of customers and maximize their sales.

Question 3

The most indirect channel for consumer goods incorporates agents,wholesalers,and retailers and is most commonly used when:

Accepted Answer

This channel structure is used when there are many small manufacturers and many small retailers, as it helps in efficiently distributing goods through multiple intermediaries.

Question 4

The most common indirect channel moves product from producer to retailer to consumer.This type of channel is most likely to exist with each of the following EXCEPT:

Accepted Answer

Small retailers buying in small quantities typically rely on wholesalers to consolidate products from various producers, making it less likely for a direct producer-to-retailer channel to exist.

Question 5

A channel that includes intermediaries between the producer and consumer and perform numerous channel functions are referred to as a(n)

Accepted Answer

An indirect channel involves intermediaries such as wholesalers, distributors, or retailers that help move the product from the producer to the consumer, performing various channel functions along the way.

Question 6

An intermediary that performs a variety of marketing channel functions involving selling,stocking,and delivering a full product assortment as well as providing financing for industrial goods and services is known as a(n):

Accepted Answer

A business distributor is an intermediary that performs various marketing channel functions, including selling, stocking, delivering a full product assortment, and providing financing for industrial goods and services.

Question 7

International Products,Burlington,Ontario,a firm that sells industrial cleansers and lubricants wanted to sell its product to factories,hospitals,and labs in China,but it did not have the necessary expertise.As a result International Products hired Asia Marketing & Management to sell,stock,and deliver a full assortment of products to the Chinese market.Asia Marketing & Management is an example of a(n):

Accepted Answer

The answer of International Products,Burlington,Ontario,a firm that sells industrial cleansers...

Question 8

In an episode of the Glee television series,members of the glee club were selling home-baked cupcakes at school,to raise money.The students selling their cupcakes without any intermediary would be an example of

Accepted Answer

The students selling their cupcakes directly to the customers, without involving any third party or intermediary, is an example of a direct channel of distribution. This is because the product is reaching the end consumer without the involvement of any additional distribution levels or intermediaries.

Question 9

Callaway Golf,by using an online and storefront strategy to sell the same product is an example of which type of arrangement?

Accepted Answer

Callaway Golf's use of both an online and physical storefront is an example of multichannel distribution, where a company uses multiple channels to reach customers and sell the same products. This allows customers to choose how they want to purchase the product, thus increasing accessibility and convenience.

Question 10

The most common indirect channel moves product from producer to retailer to consumer.This type of channel is most likely to exist in all of the following scenarios,except when:

Accepted Answer

If the cost of maintaining inventory is low, it may not be necessary to use a wholesaler as an intermediary in the distribution process, making a direct producer-to-retailer-to-consumer channel more feasible.

Question 11

Canada has gone from producing and marketing no diamonds to being the third-largest producer of diamonds in the world.This is largely due to the construction of a(n)_____________.

Accepted Answer

The construction of an ice road has allowed for the transportation of heavy machinery and supplies needed for diamond mining in previously inaccessible areas. This has enabled Canada to become a major player in the diamond industry.

Question 12

Facebook,Amazon.ca,Expedia.ca,and Dell.ca are all examples of:

Accepted Answer

Facebook, Amazon.ca, Expedia.ca, and Dell.ca are all examples of electronic marketing channels, as they use electronic means to distribute and sell products and services. They rely heavily on the internet to connect with customers, and offer a range of online tools and resources to make the shopping experience easy and convenient.

Question 13

When you order a sweater from an L.L.Bean mail-order catalogue,what type of marketing channel are you and the company using?

Accepted Answer

Direct marketing involves the direct communication between a company and its customers without any intermediaries. In this case, the L.L.Bean mail-order catalogue is a direct marketing channel as the company is reaching out directly to its customers without involving any intermediaries.

Question 14

Mail-order selling,catalogue sales,and telemarketing,are all examples of:

Accepted Answer

Direct marketing involves direct communication with potential customers to promote a product or service. Mail-order selling, catalog sales, and telemarketing are all examples of direct marketing because they involve direct communication with customers to promote products or services. Indirect marketing involves promoting products or services through intermediaries, such as retailers, and does not involve direct communication with customers. Impersonal marketing is not a recognized marketing term, and channel bypass marketing refers to the practice of manufacturers bypassing intermediaries to sell directly to consumers, which is not the case in these examples.

Question 15

The channel strategy demonstrated when Black & Decker sells its tools in the consumer market under the Black & Decker name and basically the same tool to the business market using the DeWalt brand name.Black & Decker is using:

Accepted Answer

Black & Decker is using a multichannel distribution strategy by selling the same product under different brand names to target different market segments.

Question 16

MachineTools.com sells grinders,boring mills,and engine lathes.The website has listed goods from over 700 machinery manufacturers,2,500 distributors of new equipment,and 650 dealers of used inventory for sale at the website.MachineTools.com relies on a well-established channel of manufacturers,distributors,and machinery dealers to provide the merchandise that is sold through this:

Accepted Answer

The answer of MachineTools.com sells grinders,boring mills,and engine lathes.The website...

Question 17

A method of marketing which allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as:

Accepted Answer

Direct marketing is a method of selling products and services directly to the consumers without any intermediary or middleman. This can be done through various advertising media such as TV commercials, print media, direct mail, telemarketing, and online advertising. Unlike personal selling, direct marketing does not involve face-to-face interaction with a salesperson, making it a more convenient and accessible way of purchasing products. Indirect marketing, on the other hand, involves promoting products through intermediaries such as wholesalers or retailers, while impersonal marketing is a vague term that is not commonly used in marketing.

Question 18

Indirect channels for consumer goods

Accepted Answer

Indirect channels for consumer goods refer to the use of intermediaries who perform numerous channel functions between the producer and the consumer. Examples of such intermediaries include wholesalers, retailers, and agents who help to distribute goods to the end-users.

Question 19

Business distributors perform functions that are most like which intermediary in the consumer goods marketing channel?

Accepted Answer

Business distributors are intermediaries who sell products to other businesses rather than to consumers. They perform functions like warehousing, transportation, and financing, similar to wholesalers who perform similar functions in the consumer goods marketing channel.

Question 20

Hybrid marketing channels or dual distribution are two terms that mean the same as:

Accepted Answer

Hybrid marketing channels and dual distribution both refer to the use of multiple channels to distribute a product or service. This can include both traditional brick and mortar stores as well as online retailers, for example. The term "multichannel distribution" is also commonly used to describe this strategy. Strategic channel alliance refers to a partnership between companies to sell through each other's distribution channels, while multi-intermediary distribution refers to the use of multiple intermediaries (such as wholesalers and retailers) in the distribution process. Parallel distribution is a term used more specifically in the context of intellectual property, where products are sold through multiple channels (such as authorized and unauthorized resellers) at the same time.

Quiz 14: Managing Marketing Channels and Supply Chains