Chapter 5

Question 1

Channel Strategy

Answer 1

the broad principles by which the firm expects to achieve its distribution objectives for its target market(s)

Question 2

6 Distribution Decisions for Firms to Address

Answer 2

1. The role of distribution in the firm’s overall objectives & strategies
2. The role distribution should play in the marketing mix
3. The design of the firm’s marketing channels
4. The selection of channel members
5. The management of the marketing channel in order to implement the firm’s channel design effectively & efficiently on a continuing basis
6. The evaluation of channel member performance

Question 3

Channel Strategy as Overall Corporate Objective

Answer 3

The higher the priority given to distribution, the higher the level at which it should be considered in formulating the organization’s overall objectives and strategies

Question 4

Channel Strategy & the Marketing Mix

Answer 4

1. Product Strategy e.g., quality and benefits desired)
2. Pricing Strategy (e.g., level of pricing and/or price points)
3. Promotional Strategy (e.g., the “right” combination of “push” & “pull” promotion to apply)
4. Distribution Strategy (e.g., intensity of distribution)

Question 5

Distribution Adventures

Answer 5

based on a combination of superior strategy, organization, and human capabilities.Not easily copied by competitors.

Question 6

Neglect of distribution

Answer 6

The channel manager must analyze target markets to determine whether competitors have neglected distribution and whether vulnerabilities exist that can be exploited.

Question 7

Distribution and Synergy

Answer 7

“Hooking up” with a mix of cooperative channel members will strengthen the channel. -Because each channel member is an independent entity, rewarding opportunities exist for channel managers to cultivate cooperation among members.

Question 8

Differential Advantage

Answer 8

Also called sustainable competitive advantage, occurs when a firm attains a long-term, advantageous position in the market relative to
competitors.

Question 9

Positioning the channel

Answer 9

A firm that plans the channel and makes decisions by viewing the relationship with channel members as a partnership or strategic alliance that offers recognizable benefits to the manufacturer & channel members on a long-term basis

Question 10

Factors to consider when determining the closeness of channel relationships

Answer 10

• Distribution intensity
• Targeted markets
• Products
• Company policies
• Middlemen
• Environment
• Behavioral dimensions

Question 11

Portfolio Concept

Answer 11

A tool for motivating different types and sizes of channel members participating in various channel structures who may respond differently to various motivation strategies.