Chapter 15

Question 1

Marketing Channel

Answer 1

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumer or industrial users

Question 2

Agent or Broker

Answer 2

Any intermediary with legal authority to act on behalf of the manufactuer

Question 3

Wholesaler

Answer 3

An intermediary who sells to other intermediaries, usually to retailers; usually applies to consumer markets

Question 4

Transactional Functions

Answer 4

When intermediaries buy and sell products or services

Question 5

Logistical Functions

Answer 5

Gathering, sorting, and dispersing products

Question 6

Facilitating Functions

Answer 6

Make a transaction easier for buyers

Question 7

Direct Channel

Answer 7

Directly from Producer to Consumer

Question 8

Indirect Channel

Answer 8

Intermediaries are inserted between the producer and consumer and perform numerous channel functions

Question 9

Direct to Consumer Marketing Channels

Answer 9

Allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson

Question 10

Multichannel / Omnichannel marketing

Answer 10

Blending different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online

Question 11

Vertical Marketing Systems

Answer 11

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

Question 12

Corporate vertical marketing system

Answer 12

The combination of successive stages of production and distribution under a single owndership

Question 13

Intensive Distribution

Answer 13

A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible

Question 14

Exclusive Distrubtion

Answer 14

A level of distribution density whereby only one retailer in a specific geographic area carries the firm’s products

Question 15

Selective Distribution

Answer 15

A level of distribution density whereby a firm selects a few retailers in a specific geographic area to carry its products

Question 16

Buyer Requirements

Answer 16

Information, convenience, variety, pre or post-sale services

Question 17

Channel Conflict

Answer 17

When one channel member believes another is engaged in behavior that prevents it from achieving its goals

Question 18

Vertical Marketing System

Answer 18

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

Question 19

Vertical Conflict

Answer 19

Occurs between different levels in a marketing channel (manufacturer and wholesaler)

Question 20

Disintermediation

Answer 20

A source of channel conflict that occurs when a channel member bypasses another member and sells or buys product direct

Question 21

Horizontal Conflict

Answer 21

Occurs between intermediaries at the same level in a marketing channel (between two retailers)

Question 22

Channel Captain

Answer 22

A channel member that coordinates, directs, and supports other channel members

Question 23

Logistics

Answer 23

Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

Question 24

Supply Chain

Answer 24

The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users

Question 25

Supply Chain Management

Answer 25

Integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers