Question 1

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Accepted Answer

Corporate vertical marketing systems offer more control over supply sources or resale of products. This is because the company owns or controls various stages of the distribution channel, allowing it to make strategic decisions about sourcing materials or resale of products. This control can lead to increased efficiency and the ability to respond quickly to changes in the market. The other options are not accurate, as vertical marketing systems can use both forward and backward integration, may or may not increase distribution costs depending on the specific system, and are not limited to low-end consumer products.

Question 2

Multichannel marketing

Accepted Answer

Multichannel marketing allows a firm to use multiple channels (e.g. physical stores, online marketplace, social media) to reach customers and leverage the unique value-adding capabilities of each channel. This can increase the overall effectiveness of a firm's marketing strategy. Option B and Option C are not relevant to multichannel marketing. Option D is incorrect and illegal, while option E is not necessarily true for all multichannel marketing strategies.

Question 3

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as

Accepted Answer

The answer of Professionally managed and centrally coordinated marketing channels...

Question 4

CPW (Cereals Partners Worldwide)is a __________ designed from the start to be a global business.It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

Accepted Answer

CPW is a strategic channel alliance between General Mills and Nestlé, combining their strengths in cereal manufacturing, marketing, and distribution to create a global business.

Question 5

Strategic channel alliance refers to

Accepted Answer

The answer of Strategic channel alliance refers to
...

Question 6

Rather than compete with large greeting card companies for shelf space in supermarkets,several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment,and in racks in car washes where customers who are waiting for their cars can browse and purchase cards.This is an example of which type of marketing channel strategy?

Accepted Answer

This is an example of dual distribution where smaller card companies are using two different types of channels (pack-and-ship stores and car washes) to distribute their products.

Question 7

Corporate vertical marketing system refers to

Accepted Answer

The answer of Corporate vertical marketing system refers to
...

Question 8

The three major types of vertical marketing systems are administered,corporate,and

Accepted Answer

The three major types of vertical marketing systems are administered, corporate, and contractual. The last type, contractual, includes franchising, wholesaler-sponsored cooperatives, and retailer-sponsored cooperatives, in which independent firms at different levels of the channel join together through contracts to obtain economies of scale and coordination and to reduce conflict. Thus, the best choice is E, contractual.

Question 9

In an example of __________,Kraft Foods uses the distribution system of Ajinomoto,a major Japanese food company,to market its Maxwell House coffee in Japan.

Accepted Answer

This is an example of a strategic channel alliance, which is when two or more companies work together utilizing the strengths of each other's distribution systems to reach a wider market or create more efficient distribution. In this case, Kraft Foods is using Ajinomoto's distribution system in Japan to market its Maxwell House coffee, allowing both companies to benefit from the partnership.

Question 10

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming?

Accepted Answer

Strategic channel alliances are especially good for firms to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming. This is because strategic channel alliances involve forming partnerships with other companies to share resources, costs, and expertise, allowing a firm to quickly establish a strong distribution network in international markets. This can help reduce the time and cost of creating marketing channel relationships from scratch. Dual, cooperative, and multichannel distribution are not necessarily designed specifically for global marketing, and may not be as effective in addressing the challenges of international distribution. Global distribution alliances are similar to strategic channel alliances but are specifically designed for the global marketplace and involve larger partnerships between multiple firms, making them more complex to establish and maintain.

Question 11

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as

Accepted Answer

Dual distribution. This term refers to the use of two or more different types of channels to reach the same target market or customer group. This strategy can help firms increase their reach and penetration, as well as provide customers with greater convenience and access to the product. However, it can also raise concerns around channel conflict and cannibalization if not managed carefully.

Question 12

__________ seeks to leverage the value-adding capabilities of both electronic marketing and traditional delivery.Catalogs can serve as shopping tools for online purchasing,and websites can help consumers do their homework before visiting a store.

Accepted Answer

Multichannel marketing is a strategy that seeks to combine the strengths of electronic marketing and traditional delivery channels. It aims to provide customers with a seamless and integrated shopping experience across multiple channels, including catalogs, brick-and-mortar stores, and websites. By leveraging the value-adding capabilities of each channel, multichannel marketing can help companies reach a wider audience, improve customer engagement and retention, and increase sales and profits.

Question 13

Kraft Foods distributes Starbucks coffee in U.S.supermarkets and internationally.These firms are most likely using __________ strategy.

Accepted Answer

Kraft Foods and Starbucks have entered into a strategic channel alliance where they are leveraging each other's strengths to distribute their products efficiently. Kraft Foods has the distribution network and expertise, whereas Starbucks has the brand recognition and unique blends of coffee. Together, they can reach a wider audience and achieve greater success than if they were to operate independently. Therefore, D is the correct answer.

Question 14

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios under the Nestlé label in about 140 markets worldwide.

Accepted Answer

The described partnership between Nestlé and General Mills is a strategic channel alliance, as they are collaborating to distribute General Mills products under the Nestlé label.

Question 15

Vertical marketing system refers to

Accepted Answer

A vertical marketing system is a system of distribution channels where the members of the chain (manufacturers, wholesalers, and retailers) work closely together as a unified group to meet consumer needs. In a vertical marketing system, there is coordination and cooperation between the different levels of the distribution system, which helps to improve efficiency and reduce costs. A professionally managed and centrally coordinated marketing channel, as described in choice B, is an example of a vertical marketing system.

Question 16

The combination of successive stages of production and distribution under a single ownership is referred to as

Accepted Answer

A corporate vertical marketing system involves the combination of successive stages of production and distribution under a single ownership. This can include a company owning its own suppliers and/or distributors, allowing for greater control and coordination of the entire supply chain.

Question 17

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as

Accepted Answer

A strategic channel alliance is a practice whereby one firm's marketing channel is used to sell another firm's products.

Question 18

Dual distribution refers to

Accepted Answer

Dual distribution involves a company using two or more different types of channels to reach different buyers for the same product. This can include selling through both direct and indirect channels, for example, selling directly to consumers through online channels and also selling through retail stores.

Question 19

In some instances,firms pair multiple channels with a multibrand strategy.The purpose of this strategy is to __________ of the firm's family brand and differentiate its marketing channels.

Accepted Answer

The answer of In some instances,firms pair multiple channels with...

Question 20

Pharmaceutical companies sell some of their products to hospitals and clinics directly.They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation.In addition,they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States.What method of distribution best describes the method used by pharmaceutical companies in this example?

Accepted Answer

Pharmaceutical companies in this example are using two methods of distribution - direct selling and selling to drug wholesalers who then distribute to independent drugstores. This is an example of dual distribution.

Quiz 12: Managing Marketing Channels and Supply Chains