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Question 1

“A marketing channel is an avenue that marketing
professionals use to promote and distribute information
about their company, products, or services to their audience.
The purpose of a marketing channel is to build awareness,

generate leads, and drive sales.

”

Answer 1

wrike.com

Question 2

Flexibility and Buying experience is crucial for satisfying customer’s needs
Land Based + Internet Based = Multiple Marketing Channels/Strategy
Effective monitoring of each marketing channel’s performance must take place
1. Finding the optimal multi-channel mix
2. Creating multi-channel synergies
3. Avoiding multi-channel conflicts
4. Gaining a sustainable competitive advantage via multi-channel strategy

Answer 2

THE MULTI-CHANNEL CHALLENGE

Question 3

• Retail store channels
• Mail order channels
• Wholesale distributor channels
• Sales representative channels
• Call center channels (AT&T)
• Company sales force channels
• Vending machine channels
• Company-owned retail store channels

Answer 3

An Optimal Multi-Channel Mix

Question 4

Channel portfolio (Collection of Marketing channels)

Answer 4

Financial portfolio

Question 5

synergy means using one channel to enhance the effectiveness
and efficiency of other channels in the mix.

Customers doing research before buying a product or service.

Pinch hits (to do something for someone because they are
suddenly unable to do it) or the other channels takes over the
responsibility.

Answer 5

MULTI-CHANNEL SYNERGIES

Question 6

A major obstacle to developing successful multi-channel strategies is the
emergence of conflict between different channels used for reaching the
same customers

Multiple channels may lead to competition

Zero-sum game: if one channel gains customers, then another channel
must have lost customers.

Answer 6

AVOIDING MULTI-CHANNEL CONFLICT

Question 7

is a competitive edge that cannot
be quickly or easily copied by competitors.

Answer 7

sustainable competitive advantage

Question 8

The Marketing Channel Defined Four terms in this definition should be
especially noted.

Answer 8

• External - Operates

-Distribution Objectives - Contactual Organization

Question 9

refers to anyone in a firm or
organization who is involved in marketing channel decision-
making.

Answer 9

channel manager

Question 10

are to seek out
potential target markets and to develop appropriate and
coordinated product, price promotion, and distribution strategies
to serve those markets in a competitive and dynamic
environment.

Answer 10

major tasks of marketing management

Question 11

covers the entire supply chain, from
product development to consumer delivery. Channel planning is
largely involved in the last steps of the supply chain when
marketing comes up with a product idea and logistics makes it.
The product is returned to marketing for delivery.

Answer 11

Logistics management

Question 12

is a distribution route
is the path that a good or service takes from the point where it is
made or where it is bought or used. Most of the time, wholesalers,
and retailers, are the ones who stand between the producer and
the end customer.

Answer 12

marketing channels

Question 13

are utilized in indirect distribution channels.

Answer 13

intermediaries

Question 13

which can also be referred to as specialization, is the
practice of delegating smaller, more manageable tasks to workers so
that they can contribute to a larger, more involved activity.

Answer 13

Division of labor

Question 14

the framework for deciding whether to use
intermediaries rests is

Answer 14

contractual efficiency

Question 15

Group of channel member to which a
set of distribution task has been allocated.

Answer 15

CHANNEL STRUCTURE

Question 16

The group of institution that assist
channel member in performing distribution task.

Answer 16

ANCILLARY STRUCTURE

Question 17

anyone in the firm who is making
channel decisions is, while involved in that activity, is a ….

Answer 17

CHANNEL MANAGER

Question 18

consist of firms that are
involved in extracting, growing, or making products

Answer 18

Producers and Manufacturers

Question 19

or middlemen, are
independent businesses that assist producers and
manufacturers (and final users) in the performance of
negotiatory functions and other distribution tasks.

Answer 19

Intermediaries

Question 20

Wholesalers consist of businesses
that are engaged in selling goods for resale or business use to
retail, industrial, commercial, institutional, professional or
agricultural firms, as well as to other wholesalers.

Answer 20

Wholesale Intermediaries

Question 21

1. Merchant wholesalers
2. Agents, brokers, and commission merchants
3. Manufacturers’ sales branches and offices

Answer 21

Types and Kinds of Wholesalers

Question 22

Retailers consist of business firms
engaged primarily in selling merchandise for personal or
household consumption and rendering services incidental to
selling goods.

Answer 22

Retail Intermediaries

Question 23

Assist the performance of distribution
tasks other than buying, selling transferring title.

Answer 23

Facilitating Agencies

Question 24

• Transportation Agencies • Storage Agencies • Order Processing Agencies • Third Party Logistics Provider • Advertising Agencies • Financial Agencies • Insurance Companies • Marketing Research firms

Answer 24

Types of Facilitating Agencies

Question 25

The environment consists of myriad external, uncontrollable factors within which marketing channels exist.

Answer 25

CHAPTER 3 the marketing channel and the environment

Question 26

1. Recession- economic slowdown 2. Inflation – 3. Deflation - resulting in a decline prices across a broad spectrum of good and services.

Answer 26

Economic Environment

Question 27

Horizontal competition Vertical competition Intertype competition Channel system competition

Answer 27

Types of competition

Question 28

1. GLOBALIZATION - focuses on the vast and complex trade flows among countries and the international supply chains that make huge flows of products and services across national boundaries possible. 2. CONSUMER MOBILITY AND CONNECTEDNESS - Today’s highly mobile generation expects not only to cover a great deal of territory on a frequent basis, but to also be completely in touch with colleagues, friends and family in the process. 3. SOCIAL NETWORKING - Networking—This term refers to interaction in networks comprised of individuals or organizations that are linked together based on some type of common interest, such as friendship, beliefs, hobbies, professional pursuits, special knowledge and many others. 4. THE GREEN MOVEMENT - Movement—This is a term that has often been used to refer to a focus on preserving the environment and human health.

Answer 28

Sociocultural Environment

Question 29

GLOBALIZATION - focuses on the vast and complex trade flows among countries and the international supply chains that make huge flows of products and services across national boundaries possible.

Answer 29

GLOBALIZATION

Question 30

CONSUMER MOBILITY AND CONNECTEDNESS - Today’s highly mobile generation expects not only to cover a great deal of territory on a frequent basis, but to also be completely in touch with colleagues, friends and family in the process.

Answer 30

CONSUMER MOBILITY AND CONNECTEDNESS

Question 31

Sociat Networking—This term refers to interaction in networks comprised of individuals or organizations that are linked together based on some type of common interest, such as friendship, beliefs, hobbies, professional pursuits, special knowledge and many others.

Answer 31

SOCIAL NETWORKING

Question 32

Movement—This is a term that has often been used to refer to a focus on preserving the environment and human health

Answer 32

THE GREEN MOVEMENT

Question 33

Technology is the most continuously and rapidly changing aspect of the environment. Electronic Data Interchange - Electronic data interchange (EDI) refers to the linking together of channel member information systems to provide real-time responses to communication between channel members. Scanners, Computerized Inventory Management, and Handheld Computers - Electronic scanning and computerized inventory management, enhanced by portable computers, cellular phone technology and the Internet, have created a new world in retailing and wholesaling. The Digital Revolution and Smartphones - The potential for channel managers to use this technology strategically to enhance the design and management of marketing channels is practically unlimited. RFID - This is a relatively new technology that uses a device called an RFID tag attached to a person or object, that enables that person or product to be identified and tracked using radio waves Cloud computing is an internet-based technology that enables both large and

Answer 33

THE TECHNOLOGICAL ENVIRONMENT

Question 34

When these individuals or collectivities (firms or agencies) interact as members of the marketing channel, an interorganizational social system exists

Answer 34

THE MARKETING CHANNEL AS A SOCIAL SYSTEM

Question 35

Competition is behavior that is centered, indirect, and imper Conflict, on the other hand, as show >the preceding discussion is direct, personal, and opponent-centered behavior.

Answer 35

CONFLICT VERSUS COMPETITION

Question 36

• Role Incongruities • Resource Scarcities •Perceptual Differences • Expectational Differences • Decision Domain Disagreements • Goal Incompatibilities • Communication Difficulties

Answer 36

CAUSES OF CHANNEL CONFLICT

Question 37

This text is based on an underlying assumption of trust, commitment, and cooperation among channel members, with an emphasis on building viable relationships to achieve distribution objectives.

Answer 37

CONFLICT IN THE MARKETING CHANNEL

Question 38

context we are referring to the capacity of a particular channel member to control or influence the behavior of another channel member(s)

Answer 38

Power in the Marketing Channel

Question 39

to reward another if the latter conforms to the influence of the former

Answer 39

Reward Power

Question 40

the opposite of reward power. In this case a channel member’s power over another is based on the expectation that the former will be able to punish the latter upon failure to conform to the former’s influence at tempts.

Answer 40

Coercive Power

Question 41

channel member has a legitimate right to influence the other, and that an obligation exists to accept the influence.

Answer 41

Legitimate Power

Question 42

they may see each other as being in the same reference group

Answer 42

Referent Power

Question 43

derived from knowledge (or perception of knowledge) that one channel member attributes to another in some given area.

Answer 43

Expert Power

Question 44

provides the basis for sending and receiving information among the channel members and between the channel and its environment.

Answer 44

Communication Process in the Marketing Channel

Question 45

two basic behavioral problems that create communication difficulties between the manufacturer and small independent retailer in the channel structure: (1) differences in goals between manufacturers and their retailers (2) differences in the kinds of language they use to convey information.

Answer 45

Behavioral Problems in Channel Communications

Question 46

can be viewed as a special case of the more general marketing strategy.

Answer 46

Marketing channel strategy

Question 47

• Whether or not the firm views distribution as worthy of top management concern when developing overall objectives and strategies, it must still deal with the issue of the role of distribution in the marketing mix.

Answer 47

MARKETING CHANNEL STRATEGY AND THE MARKETING MIX

Question 48

• 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.

Answer 48

MOTIVATION OF CHANNEL MEMBERS

Question 49

Optimizing the marketing mix to meet the demands of the target market requires not only excellent strategy in each of the four strategic variables of the marketing mix, but also an understanding of the relationships or interfaces among them

Answer 49

USE OF MARKETING MIX IN CHANNEL MANAGEMENT

Question 50

• refers to decisions associated with developing new marketing channels where none had existed before, or to modifying existing channels. • The first point to note in this definition is that channel design is presented as a decision faced by the marketer • A second point is that channel design is used in a broad sense to include either setting up channels from scratch or modifying existing channels. • Third, when used in its verb form, the term design implies that the marketer is consciously and actively • Fourth, selection, as we use the term, refers to only one phase of channel design—the selection of the channel members. • Final is the term channel design should be used as an integral part of the firm’s attempt to gain a differential advantage or sustainable competitive advantage in the market

Answer 50

CHANNEL DESIGN

Question 51

• Producers • Manufacturers • Wholesalers (consumer and industrial) • Retailers all face

Answer 51

ENGAGES IN CHANNEL DESIGN

Question 52

RECOGNIZING THE NEED FOR A CHANNEL DESIGN DECISION

Answer 52

PHASE 1

Question 53

SETTING AND COORDINATING DISTRIBUTION OBJECTIVES

Answer 53

PHASE 2

Question 54

SPECIFYING DISTRIBUTION TASKS

Answer 54

PHASE 3

Question 55

DEVELOPING POSSIBLE ALTERNATIVE CHANNEL STRUCTURES

Answer 55

PHASE 4

Question 56

EVALUATING THE VARIABLES AFFECTING CHANNEL STRUCTURE

Answer 56

PHASE 5:

Question 57

CHOOSING THE “BEST” CHANNEL STRUCTURE

Answer 57

PHASE 6

Question 58

SELECTING THE CHANNEL MEMBERS

Answer 58

PHASE 7

Question 59

• Lambert offers another approach, by arguing that the most important variables for choosing channel structure are financial

Answer 59

Financial Approach

Question 60

• the financial approach serves as a useful reminder of the importance of financial variables in choosing a channel structure.

Answer 60

Using the Financial Approach

Question 61

• cost analysis (TCA) has become the focus of much attention in the marketing channels literature.

Answer 61

Transaction Cost Analysis Approach Transaction

Question 62

Using the TCA Approach • TCA has some limitations from the standpoint of managerial usefulness

Answer 62

Using the TCA Approach

Question 63

• some pioneering attempts have been made to use management science methods, such as operations research, simulation, and decision theory, in an effort to design optimal marketing channels

Answer 63

Management Science Approaches

Question 64

• These approaches still need much more development before they are likely to find widespread application to channel choice.

Answer 64

Using Management Science Approaches

Question 65

• As the name suggests, these approaches to choosing channel structure rely heavily on managerial judgment and heuristics, or rules of thumb.

Answer 65

Judgemental-Heuristic Approaches

Question 66

• Straight Qualitative Judgment Approach • Weighted Factor Score Approach • Distribution Costing Approach

Answer 66

Three approaches illustrating variations in judgmentalheuristic