Marketing Channels

Question 1

Sustainable competitive advantage

Answer 1

Place (distribution)

Potential for gaining competitive advantage because place is more difficult for competitors to copy

Question 2

Disintermediation

Answer 2

reduction of number of intermediaries

Question 3

Reintermediation

Answer 3

evolution of a new type of intermediary

Question 4

Marketing Channel

Answer 4

external contractual organization that management operates to achieve its distribution objectives (slide 8, ch1)

Question 5

Channel Manager

Answer 5

anyone in a firm or organization who is involved in marketing channel decision making

Question 6

Channel Strategy

Answer 6

concerned with entire process of starting and operating contactual organization

Question 7

Logistics Management

Answer 7

Focused specifically on providing product availability at appropriate time and place

Question 8

Specialization & Division of Labor

Answer 8

Distribution Tasks- Distributed inter organizationally

Production- distributed intraorganizationally

Question 9

Contactual Efficiency

Answer 9

Negotiation effort in dollar terms relative to achieving the distribution objective

Question 10

Channel Structure

Answer 10

the group of channel members to which a set of distribution tasks has been allocated

Question 11

Anchillary Structure

Answer 11

The group of institution that assist channel members in performing distribution tasks

Question 12

Producers and Manufacturers

Answer 12

• Lack expertise

- lack economies of scale

Question 13

inter organizational social system

Answer 13

• generated by any process of interaction on sociocultural level
• between two or more actors
• actor is individual or collectivity

Question 14

Channel Conflict

Answer 14

Cause: when a channel member perceives that another members actions impeded the attainment of his or her goals

Question 15

Power (in the marketing channel)

Answer 15

a capacity of a particular channel member to control or influence the behavior of another channel member

Question 16

power bases

Answer 16

reward power
coercive power
legitimate power
referent power
expert power

Question 17

Roles

Answer 17

a set of prescriptions defining what the behavior of a position member should be

Question 18

Communication Process

Answer 18

1. differences in goals between manufacturers & retailers
2. differences in the kinds of language they use to convey information
3. perceptual differences among members
4. secretive behavior
5. inadequate frequency of communication

Question 19

Channel Management

Answer 19

The administration of existing channels to secure the cooperation of channel member in achieving the firms distribution objectives

Question 20

Channel Strategy

Answer 20

The board principles by which the firm expects to achieve its distribution objectives for its target market

Question 21

Channel Design

Answer 21

Decisions involving the development of new marketing channels either where none had previously existed or to the modification of existing channels

Question 22

Channel Level

Answer 22

• Range from two to 5 or more
• number of alternatives is limited to two or three choices
• limitation result from the following factors
• particular industry practices
• nature& size of the market
• availability of intermediaries

Question 23

Channel Intensity

Answer 23

Relationship between the intensity of distribution
dimension & number of retail intermediaries used in a
given market area

Question 24

Market Geography

Answer 24

refers to the geographical extent of markets and where they are located

Question 25

Market Size

Answer 25

refers to the number of buyers or potential buyers (consumer or industrial) in a given market

Question 26

Market Density

Answer 26

refers to the numbers of buyers or potential buyers per unit of geographical area

Question 27

Efficient Congestion

Answer 27

Congested (high-density) markets can promote efficiency in the performance of several basic distribution tasks, particularly those of transportation, storage, communication, and negotiation.

Question 28

Market Behavior

Answer 28

1. when the market buys
2. where the market buys
3. how the market buys
4. who Buys