Chapter 12 - Supply Chain, Channel Management and Retail

Question 1

The importance of marketing channels and their management

Answer 1

1. Marketing channels add value

2. Marketing channel management affects other aspects of marketing

Question 2

marketing channels add value

Answer 2

At each step the product becomes more costly but also more valuable to the consumer.
Having a retailer decreases transactions thus channel and supply chain becomes more efficient, and more convenient and less costly for customers.

Question 3

Marketing channel management affects other aspects of marketing

Answer 3

Every marketing decision is affect by and has an effect on marketing channels
Advertising and promotion must be coordinated with departments that control inventory and transportation so merchandise arrives on time.

Question 4

What is the difference between direct and indirect marketing channels

Answer 4

direct marketing channels have no intermediaries between buyer and seller
indirect marketing channels have one or more intermediaries

Question 5

describe how marketing channels are managed

Answer 5

they can be managed 3 different ways:

1. independent/conventional marketing channel
2. vertical marketing system
3. strategic/partnering relationships

Question 6

independent/conventional marketing channel

Answer 6

each member attempts to satisfy its own objectives and maximise its profits, often at the expense of other members
no participants have control over another

Question 7

vertical marketing system

Answer 7

there are three types reflecting phases of formalisation and control

1. administered
2. contractual
3. corporate

Question 8

strategic/partnering relationships

Answer 8

members are committed to maintain long term relationship and invest in opportunities that are mutually beneficial

Question 9

Discuss the factors manufacturers should consider as they develop their strategy for working with retailers

Answer 9

1. choosing retailing partners
2. identifying types of retailers
3. developing a retail strategy
4. managing a multichannel strategy

Question 10

outline the considerations associated with choosing retailed partners

Answer 10

1. channel structure
2. customer expectations
3. channel member characteristics
4. distribution intensity

Question 11

list the three levels of distribution

Answer 11

intensive
exclusive
selective

Question 12

describe the various types of retailers

Answer 12

food
general merchandise
service

Question 13

identify the benefits of stores for consumers

Answer 13

browsing
touching and feeling products
personal service
cash and credit payment
entertainment and social experience
immediate gratification
risk reduction

Question 14

identify the benefits of multichannel retailing

Answer 14

deeper and broader selection
personalisation of customer service and offerings
expand market presence

Question 15

identify challenges of multichannel retailing

Answer 15

integrated CRM
maintaining brand image across all channels
customers expect pricing consistency
struggle to provide integrated shopping experience across all channels