Chapter 10

Question 1

place

Answer 1

making goods and services available in the right quantities and locations when customers want them

Question 2

channel of distribution

Answer 2

any series of firms or individuals who participate in the flow of products from producer to final user or consumer

Question 3

direct marketing

Answer 3

direct communication btw a seller and an individual customer using a promotion method other than face to face personal selling

Question 4

discrepancy of quantity

Answer 4

the difference btw the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want

Question 5

discrepancy of assortment

Answer 5

the difference btw the lines a typical producer makes and the assortment final consumers or users want

Question 6

regrouping activities

Answer 6

adjust the quantities or assortments of products handled at each level in a channel of distribution

Question 7

accumulating

Answer 7

involves collecting products from many small producers

Question 8

bulk breaking

Answer 8

involves dividing larger quantities into smaller quantities as products get closer to the final market

Question 9

sorting

Answer 9

separating products into grades and qualities desired by different target markets

Question 10

assorting

Answer 10

putting together a variety of products to give a target market what it wants

Question 11

traditional channel systems

Answer 11

the various channel members make little or no effort to cooperate with one another

Question 12

channel captain

Answer 12

a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts

Question 13

vertical systems

Answer 13

channel systems in which the whole channel focuses on the same target market at the end of the channel

Question 14

corporate channel systems

Answer 14

corporate ownership all along the channel

Question 15

administered channel systems

Answer 15

channel members informally agree to cooperate with one another

Question 16

contractual channel systems

Answer 16

channel members agre by contract to cooperate with one another

Question 17

ideal market exposure

Answer 17

makes a product available widely enough to satisfy target customers’ needs but not exceed them

Question 18

intensive distribution

Answer 18

selling a product through all responsible and suitable wholesalers and retailers who will stock or sell the product

Question 19

selective distribution

Answer 19

selling thru only those intermediaries who will give the product special attention

Question 20

exclusive distribution

Answer 20

selling thru only one intermediatry in a particular geo area

Question 21

mutlichannel distribution

Answer 21

occurs when a producer uses several competing channels to reach the same target market

Question 22

reverse channels

Answer 22

channels used to retrieve products that customer no longer want

Question 23

liscensing

Answer 23

selling the right to use some process, trademark, patent, or other right for a fee or royalty

Question 24

management contracting

Answer 24

seller provided only management and marketing skills-others own the production and distribution facilities

Question 25

joint venture

Answer 25

a domestic firm enters into a partnership with a foreign firm

Question 26

direct investment

Answer 26

means that a parent firm has a division in a foreign market