Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Distribution Channels > 11 - The roles of the final-tier trade channel players > Flashcards

11 - The roles of the final-tier trade channel players Flashcards

1
Q

What are final-tier trade channel players?

A

Players that interact with the end customer in various capacities, including product supply and service-related roles.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Name two types of players in the automotive industry.

A
  • Dealers
  • Workshops
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What role do architects play in the final-tier trade channel?

A

They can influence customer choices by specifying fittings in new constructions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the function of service providers in final-tier trade channels?

A

Providing services such as installation, maintenance, and support.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

True or False: All final-tier trade channel players handle products directly.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What term is used for a supplier that customizes products for customers?

A

Product completer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the role of a solution integrator?

A

To render a solution fit for unique customer needs by integrating multiple products and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Fill in the blank: The final-tier trade channel player that acts as a customer advocate is called a _______.

A

customer advocate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a common characteristic of final-tier trade channel players?

A

They often fulfill multiple roles within the value chain.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

List three activities performed by automotive dealers.

A
  • Selling cars
  • Servicing cars
  • Supporting customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the significance of maintaining and upgrading products in final-tier trade channels?

A

Most products require ongoing support and cannot be sold as stand-alone items.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does the term ‘extension of a vendor’ refer to?

A

An outsourced capability handling logistics or back-office processes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

True or False: A service provider’s role is primarily customer-oriented.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What distinguishes a service provider from a solution integrator?

A

Service providers focus on making specific products work, while solution integrators ensure multiple products work together.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the role of a master contractor in construction?

A

To manage the entire project and coordinate with subcontractors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a value-added reseller?

A

A partner that adds features or services to a product before reselling it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How do hybrid business models operate in final-tier trade channels?

A

They combine elements of retailing and service provision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

List two examples of specialist tradespeople in the building industry.

A
  • Window installers
  • Kitchen fitters
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What impact does customer demand have on the roles of final-tier trade channel players?

A

It often leads to hybrid roles where players adapt to fulfill various functions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Fill in the blank: In the realm of trade channels, _______ are defined in terms of the knowledge value chain.

A

roles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What role does a reseller fulfill?

A

They sell products from manufacturers or suppliers, often providing support.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the role of an influencing partner in final-tier trade channels?

A

To affect customer choices regarding specific products or services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the significance of training for service providers from suppliers?

A

It ensures that service providers understand product ranges and can install them properly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is often the first step for a customer seeking IT solutions?

A

Consulting with a solution provider to determine their needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What is the importance of ethical controls in pharmaceutical marketing?
They ensure that channel partners do not shift from customer/patient roles to supplier roles ## Footnote This is crucial to maintain trust and integrity in healthcare practices.
26
In rapidly consolidating industries, what is often found among partners?
A mix of partners playing multiple roles competing with those fulfilling only one role ## Footnote This can lead to confusion and a lack of clarity in market dynamics.
27
How do mass-merchandise retailers affect the household appliances market?
They capture more margin by providing services like kitchen design and installation ## Footnote This shift changes their role from just retailers to full-service providers.
28
What do consumers consider when remodeling their kitchens?
Inputs from a variety of sources before ordering products from a retailer ## Footnote This indicates a thoughtful purchasing process.
29
What role do kitchen fitters play in the household appliances market?
They install products and ensure integration into the kitchen ## Footnote This is crucial for customer satisfaction and proper product functionality.
30
What is a key challenge for service providers in mature industries?
Declining margins for commodity services and the need for higher-value integration work ## Footnote This necessitates a shift in strategy to remain competitive.
31
What compensation model is often used in trade channels?
Trade discount, where suppliers give discounts to trade partners based on conditions ## Footnote This can create competition among trade players based on pricing.
32
What can happen if trade discounts are passed to the street?
Smaller players may struggle to compete and could abandon suppliers ## Footnote This can destabilize the distribution network.
33
How do suppliers manage trade discounts to maintain their distribution network?
By making discounts uncertain or conditional, preventing excessive discounting ## Footnote This strategy helps retain a diverse range of partners.
34
What are 'black box' discounts?
Discounts that are uncertain and contingent on achieving specific targets ## Footnote This creates unpredictability in compensation for trade partners.
35
How can suppliers create incentives for trade partners?
By awarding bonuses based on performance after trading periods ## Footnote This encourages partners to strive for better performance.
36
What is the accreditation approach in trade channels?
Accreditation based on compliance and technical qualifications for discounts ## Footnote This helps ensure that partners are capable and knowledgeable.
37
Fill in the blank: 'The alternative to black box discounts is to pay for ________ performed by the final tier.'
[functions or activities]
38
What is a major change in how a film distributor compensated its partners?
Re-allocating compensation to pay partners for discrete activities ## Footnote This approach enhances control over channel performance.
39
What does a 'fee for function' model entail?
Paying partners for specific activities related to their performance ## Footnote This aligns compensation more closely with desired outcomes.
40
In the context of compensation, what do sophisticated customers do?
Negotiate their required package of services and related pricing ## Footnote This reflects a more informed and proactive consumer base.
41
What should customers be aware of when negotiating service packages?
The scope of specific services they want and related pricing ## Footnote This can significantly affect their satisfaction and value received.
42
How do suppliers define service requirements for customers who are unsure?
By outlining necessary services and encouraging dealers to offer prescribed prices ## Footnote This helps standardize expectations and service quality.
43
What can a customer expect after servicing their car?
The customer can expect the car to be bang up to date on the model, a three-year warranty not to be invalidated, potential free valet service, or the use of a car while theirs is with the dealer.
44
What might change in a customer's performance and risk-management requirements over time?
The customer may only be prepared to fix major problems, may not care about a valet, and may need quick assistance like getting the car started in winter.
45
Who is in control of the value/compensation equation in the customer-supplier relationship?
The customer is in control of the value/compensation equation.
46
What role do 'sell-with' players play in the market?
'Sell-with' players act as advocates for the customer but do not handle the product or facilitate its delivery.
47
Give an example of a 'sell-with' player.
Architects and interior designers specifying products for their designs.
48
How does the business model of a 'sell-with' player work?
The customer pays fees to the 'sell-with' player, who is believed to best understand the customer's needs and budget.
49
What challenge do suppliers face with 'sell-with' partners?
Suppliers depend on customer advocates to recognize and recommend their products over competitors.
50
What strategies can suppliers use to influence 'sell-with' partner behavior?
Suppliers can establish regular meetings, provide strong information flow, and promote discussions on current projects.
51
True or False: Suppliers should avoid rewarding customer advocates to prevent conflict of interest.
False.
52
What are some familiar strategies to reward customer advocates?
* Free technical help * Training beyond product knowledge * Broker introductions and leads * Conferences at attractive locations
53
What issue arises when measuring the influence of 'sell-with' partners?
Challenges include measuring the degree of influence and attributing a sale to a partner.
54
What is the compensation model for financial advisers in the financial services industry?
Many financial advisers are compensated through commissions paid by suppliers on the products they recommend.
55
What is a potential conflict of interest in the financial services industry?
Advisers may have a conflict if they are compensated by suppliers while also working for the customer.
56
What do sophisticated customers prefer regarding financial advice?
They prefer to pay fees to independent financial advisers for sound advice.
57
Fill in the blank: Not all sell-with players are _______.
[customer advocates]
58
What can strategic alliances between suppliers achieve?
Higher sales volumes, better conversion rates, or entry into new markets.
59
How did SAP build its market share outside Germany?
SAP partnered with big systems integrators and demonstrated significant revenue generation for them from consultancy work.
60
What is essential for the success of strategic partnerships?
Time and money investment from both parties, along with strong commitment from top levels.
61
What framework did Hewlett-Packard use to improve its market position?
Hewlett-Packard used the roles of service providers and solution integrators to overhaul its distribution model.
62
Fill in the blank: Strategic partnerships are built on shared expectations of _______.
[long-term revenue generation]

Distribution Channels (25 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions