Chapter 5: Strategy in Marketing Channels

Question 1

“Kotler defines it as the broad principles by which the business unit expects to achieve its marketing objectives in a target market.”?

Answer 1

• Marketing strategy

Question 2

Six basic distribution decisions?

Answer 2

• Role of distribution in overall objectives and strategies
• Role of distribution in marketing mix
• Designing marketing channels
• Selecting Channel members
• Managing the channel
• Evaluating channel member performance

Question 3

Is the basis for developing an appropriate marketing mix. If customers in the
firm’s target market have demands that can be satisfied best through a distribution strategy, this should be stressed in the firm’s marketing mix?

Answer 3

• Target Market Demand

Question 4

The most fundamental distribution decision for any firm or organization to consider is the role that distribution is expected to play in a company’s long-term overall objectives and strategies?

Answer 4

• True

Question 5

Neglect of distribution strategy by competitors provides an excellent opportunity for those companies who are willing to make the effort to
develop distribution as a key strategic variable in the marketing mix?

Answer 5

• True

Question 6

Also called sustainable competitive advantage in more recent years, refers to a firm’s attainment of an advantageous position in the market relative to competitors, a place that enables it to use its particular strengths to satisfy customer demands?

Answer 6

• Differential Advantage

Question 7

Is what the firm does with its channel planning and decision making to attain the channel position?

Answer 7

• Channel Positioning

Question 8

When motivating channel members, the strategic challenge is to find the means to secure strong channel member cooperation in achieving distribution objectives. Channel strategy in this context involves whatever ideas and plans the channel manager can devise to help achieve that result. More specifically, it means putting together the right mix of tactics to motivate channel members (Planning to motivate channel members to cooperate)

Answer 8

• True

Question 9

Concept has been borrowed by a number of other business areas including marketing?

Answer 9

• The portfolio

Question 10

The portfolio concept has also been applied in the context of marketing channels and is referred to as?

Answer 10

• Distribution portfolio analysis (DPA).

Question 11

Provides a comprehensive method for categorizing channel members, The essence of DPA is that it can help the channel manager to focus more insightfully on the channel members by viewing all of the channel structures and/or channel members as the portfolio?

Answer 11

• DPA

Question 12

The adage “the proof is in the pudding” is most apt when it comes to
the evaluation of channel member performance?

Answer 12

• True

Question 13

What are the four strategic variables of the marketing mix?

Answer 13

• Product strategy
• Pricing Strategy,
• Promotion Strategy
• Distribution Strategy