chapter 16

Question 1

External determinants of channel selection (5)

Answer 1

• Customer characteristics
• Nature of the product
• Nature of demand/localtion
• Competition
• Legal regulations / local business practices

Question 2

Keiretsu

Answer 2

A network of businesses that own stakes in one another as a means of mutual security, especially in Japan, and usually including large manfacturers and their suppliers of raw materials and components

Question 3

Three market coverage approaches

Answer 3

• intensive coverage
• selective coverage
• exclusive coverage

Question 4

Channel lenght

Answer 4

The number of levels in the distribution channel

Question 5

Vertical integration

Answer 5

Seeking control of channel members at different levels of the channel, e.g. the manufacturer’s acquisition of the distributor

Question 6

Horizontal integration

Answer 6

Seeking control of channel members at the same level of the channel, e.g. the manufacturer’s acquisition of the competitor

Question 7

Multiple channel strategy

Answer 7

A product/service is available to the market through more channels of distribution. All the channels are in principle available to the customer, but the channels are not themselves integrated

Question 8

Omnichannel strategy

Answer 8

All the channels are available to the customer, and the channels are also integrated and connected. The purpose is to deliver experiences and value through the whole customer journey

Question 9

Disintermediation

Answer 9

The elemination of a layer of intermediaries from a marketing channel or the displacement of traditional resellers by radically new types of intermediaries

Question 10

Channel conflict

Answer 10

Disagreement among marketing channel member on goals and roles.

Question 11

IDR cycle

Answer 11

Intermediation -> disintermediation -> reintermediation

Question 12

Channel power

Answer 12

The ability of a channel member to control marketing variables of any other member in a channel at a different level of distribution

Question 13

Concentration in retailing

Answer 13

Worldwide tendency towards concentration in retailing, in which fewer and fewer retail chains dominate more and more of the retail trade, creating huge buying power in the big international retail chains

Question 14

Grey marketing

Answer 14

Importing and selling of products through market distribution channels that are not authorized by the manufacturer. It occurs when the manufacturer uses significantly different market prices for the same product in different countries and mainly exists for high-prices