BA101 (Week 3) Chapter 13

Question 0

Direct Channel

Answer 0

Producer deals directly with customers. 
(+) 
-cost goes directly to producer 
-easily obtain feedback
(-)
-need more employees 
-sell through credit

Question 1

Marketing Intermediaries

Answer 1

Firms that participate in moving the product from the producer toward the customer

Question 2

Merchants

Answer 2

Marketing intermediaries that becomes owners of products and resells them

Question 3

Agents

Answer 3

Match buyers and sellers of products without becoming owners

Question 4

One level channel

Answer 4

One marketing intermediary is between producer & the customer (producer-retail stores)

Question 5

Two level channel

Answer 5

Two marketing intermediaries are between producer and the customers. (Producer-wholesale-retail store)

Question 6

List factors that determine optimal channel of distribution

Answer 6

• ease of transporting (more likely to invoke intermediaries.
• degree of Standization (more Lilly to involve intermediaries.
• Internet orders (direct channel)

Question 7

Market Coverage

Answer 7

Degree of product distribution among outlets

Question 8

Type Of Distribution

Answer 8

• Intensive - distributive product across most or all possible outlets. Ensure consumers will have easy access.
• Selective - distribute product through selective outlets (computers, textbooks)
• Exclusive - only one or few outlets

Question 9

Types of Transportation

Answer 9

• trucks
• rails
• air
• water
• pipeline

Question 10

List the characteristics of retailers

Answer 10

• Number of Outlets
• Quality of Service
• Variety of products
• Nonstore retailers (mail-order retailers)

Question 11

Independent retail store

Answer 11

One outlet

Question 12

Chain

Answer 12

More than one outlet

Question 13

Full Service retail store vs. Self-service

Answer 13

• FS offer sale assistance to customers

- SS do not require much expertise

Question 14

Specialty Retail Store vs. variety

Answer 14

SRS - specialize a specific product

VRS - offer numerous types of goods

Question 15

Services by wholesalers

Answer 15

• Warehouse (main inventory)
• sale expertise (use when selling products to retailers
• delivery to retailers
• assumption of credit risk
• information

Question 16

Vertical Channel Integration

Answer 16

2 or more levels of distribution are managed by one firm.

Question 17

Horizontal Intergration

Answer 17

Strategy to increase your market share by taking over a similar company.