Chapter 10 Marketing Channels

Question 1

Marketing channel

Answer 1

interdependent firms making products available for businesses or consumers

leads to competitive advantage

Question 2

agent or broker

Answer 2

any intermediary with legal authority to act on behalf of another channel member (e.g manufacturer)

Question 3

wholesaler

Answer 3

intermediary who sells to other intermediaries, usually to retailers - this term usually applies to intermediaries who deal in consumer goods

Question 4

retailer

Answer 4

an intermediary who directly sells to consumers

Question 5

distributor

Answer 5

perform variety of functions, including selling, maintaining inventories, extending credit, etc.

Question 6

dealer

Answer 6

a general term that can mean the same as a distributor, a retailer, or a wholesaler

Question 7

how do intermediaries make the selling of goods and services more efficient?

Answer 7

minimize the points of contact for sales to reach a target market
eg) best buy

Question 8

textbook: 3 basic functions of intermediaries

Answer 8

transactional function - the buying and selling, wholesalers purchase and carry risk as well

logistical function - storing, and moving the product itself

facilitating function - do the selling - ex) front person, gift cards

Question 9

5 utilities of intermediaries that create value

Answer 9

form - appearance

time - access when you need it

place - where you want it

possession - providing various ways of purchasing the product

information - informing consumer

Question 10

dual distribution

Answer 10

reaching different buyers by using at least two different channels

Question 11

2 reasons for multi brand distribution strategy

Answer 11

minimize cannibalization

differentiate their channels

Question 12

strategic alliances

Answer 12

one firms channel is used to sell another firm’s products

Question 13

multichannel marketing

Answer 13

aka integrated communication and delivery channels

mutually reinforcing, retaining, and building relationships with custy

Question 14

cross channel shopper

Answer 14

researches online and purchases at a retail store

• comparing among different retailers
• need for more information
• ease of comparing options

Question 15

vertical marketing system

Answer 15

• a channel structure where producers, wholesalers, and retailers act as a unified system
• one channel member owns everyone and has contracts

Question 16

2 kinds of vertical marketing system

Answer 16

corporate vertical

contracted vertical

Question 17

corporate vertical system

Answer 17

a firm at one channel own s the firm at the next level or owns the whole channel
ie) forward integration

Question 18

contracted vertical system

Answer 18

independent firms work together

3 kinds
wholesale sponsored

retailed sponsored coop

franchising

Question 19

4 types of franchises

Answer 19

manufacturer sponsored retail franchise , eg) ford license

manufacturer sponsored wholesale, eg) pepsi

retail franchise systems, eg) mcdonalds

service franchise, eg) h&r block

Question 20

market factors that affect channel choice

Answer 20

geographic concentration of the market

number of potential customers

type of market

order size

Question 21

product factors of channel choice

Answer 21

technical factors

perishability

unit value

product life cycle

Question 22

company factors of channel choice

Answer 22

financial resources and ability of management

desire for channel control

Question 23

3 channel design considerations

Answer 23

1. target market coverage - intensive, selective, exclusive
2. satisfying buyer requirements - information, convenience, variety, and pre / post sale services
3. profitability - distribution, advertising, and selling expenses

Question 24

intensive distribution

Answer 24

placing products in as many outlets as possible

Question 25

selective distribution

Answer 25

balance between exclusive and intensive - more geographic

Question 26

two kinds of conflict in channels

Answer 26

vertical conflict (also disintermediation)
and horizontal conflict

Question 27

Logistics

Answer 27

getting the right products to the right place at the right time at the lowest possible price

Question 28

supply chain

Answer 28

series of firms that perform activities to create and deliver a good or service to consumers or industrial users

Question 29

supply chain management

Answer 29

integration and organization of information and logistics activities across firms in a supply chain through collaboration, coordination, and information sharing

Question 30

4 key logistic functions

Answer 30

transportation (cost, time, capability, dependability, accessibility, frequency)

order processing (electronic data interchange)

inventory management (JIT)

warehousing (public or private, traditional, cross docking combination)

Question 31

order processing, Electronic Data Interchange

Answer 31

computer to computer information exchange

Question 32

Inventory management, JIT

Answer 32

just in time

deliver less merchandise more frequently, what’s delivered is used

complicated because frequency takes logistics

Question 33

cross docking

Answer 33

use of a staging area in between storage and store

Question 34

retail franchise systems

Answer 34

firms that have unique selling strategy