Test 1 Review

Question 1

Sustainable Competitive Advantage

Answer 1

competitive edge that cannot be quickly or easily copied

Question 2

Optimal Multichannel Mix

Answer 2

Internet based online channels, In-store Channels, Mail Order Channels, Wholesale Distributor Channels, Sales Rep Channels, etc

Question 3

Channel Portfolio

Answer 3

Provides access to a range of customer segments while achieving channel diversification

Question 4

Multichannel Synergy

Answer 4

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

Question 5

Marketing Channel

Answer 5

The external contactual organization that management operates to achieve its distribution objectives

Question 6

Contactual Organization

Answer 6

firms or parties who are involved in negotiatory functions as a product or service moves from the producer to the end user

Question 7

Facilitating Agencies

Answer 7

transportation companies, ad agencies, banks, warehouses, insurance companies; perform tasks other than negotiatory functions

Question 8

Channel Manager

Answer 8

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

Question 9

Marketing Mix Channel Strategy

Answer 9

Managing the controllable 4 P’s (Product, Price, Promotion and Place) to meet the needs of the targeted consumer in the light of uncontrollable external factors

Question 10

Environmental Factors

Answer 10

Government, Sociocultural Norms, Economy, Competition, and Technology

Question 11

Disintermediation

Answer 11

eliminating the middle man

Question 12

Specialization and Division of Labor

Answer 12

Setting specific tasks for people within a firm to create the finished product or mission, (Assembly Line)

Question 13

Contactual Efficiency

Answer 13

level of negotiation effort between sellers and buyers relative to achieving a distribution objective

Question 14

Channel Structure

Answer 14

The group of channel members to which a set of distribution tasks has been allocated (given set of distribution tasks that must be performed to achieve distribution objectives)

Question 15

Ancillary Structure

Answer 15

The group of institutions (facilitating agencies) that assist channel members in performing distribution tasks

Question 16

Commercial Channel

Answer 16

The external contactual organization that management operates to achieve its distribution objectives (DOES NOT INCLUDE END USER)

Question 17

During a recession

Answer 17

Economic slowdown, sales volume levels and profitability slow. Channel members need to focus on adding value

Question 18

During an inflation

Answer 18

Devaluation of Money. Channel members expect better price deals, more promotional support, and reduced inventory.

Question 19

Horizontal Competition

Answer 19

competition from firms at the same type (Banana vs JCrew)

Question 20

Intertype competition

Answer 20

Competition between different types of firms at the same level (off-price stores vs department store)

Question 21

Vertical Competition

Answer 21

Competition between firms at different channel levels (retailer vs wholesaler)

Question 22

Channel System Competition

Answer 22

Complete channels competing other complete channels

Question 23

Complete Channel

Answer 23

Vertical Marketing Systems

1) Corporate
2) Contractual
3) Administered

Question 24

Corporate Channel

Answer 24

Production and marketing facilities are owned by the same company

Question 25

Contractual Channel

Answer 25

Independent channel members are linked by formal contractual agreement

Question 26

Administered Channel

Answer 26

Result from strong domination by one of the channel members (usually manufacturer) over the other channel members

Question 27

The Technological Environment

Answer 27

RFID (Radiofrequency Identification), EDI (Electronic Data Interchange), Cloud Computing,

Question 28

Power in Marketing Channels

Answer 28

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

Question 29

Power Base

Answer 29

The root of power that one party exercises over the other.Reward, Coercive, Legitimate, Referent & Expert Power

Question 30

Reward Power

Answer 30

Channel can reward the other if they conform to the request. Present in almost all channel members

Question 31

Coercive Power

Answer 31

Channel punishes the other for not fulfilling request

Question 32

Legitimate Power

Answer 32

Has a legitimate right to exercise its power (Franchisor to the franchisee)

Question 33

Referent Power

Answer 33

When wholesalers user manufacturers power as their own power

Question 34

Expert Power

Answer 34

One channel members attempt to influence another channel member is based on superior expertise

Question 35

Marketing Channel Strategy

Answer 35

Broad principles by which the firm expects its distribution objectives for its target markets

Question 36

Slotting Allowances

Answer 36

Paying channel members for shelving space

Question 37

Channel Design

Answer 37

Decisions associated when selecting new marketing channels where none had existed before, or to modify existing channels

Question 38

Who engages in Channel Design?

Answer 38

Producers, Wholesalers, and Retailers all face channel design problems

Question 39

Paradigm of Channel Design

Answer 39

1) Need
2) Setting/coordinating distribution objectives
3) Specifying Distribution Tasks
4) Developing alternative channel structures
5) Evaluating the variables affecting the channel structure
6) Choosing the best channel structure
7) Selecting the channel members

Question 40

Intensity at various levels

Answer 40

1. Intensive
2. Selective
3. Exclusive

Question 41

Durable Goods

Answer 41

Motor Vehicles, Furniture, Electrical Goods, Plumbing, Lumber, Commercial Equipment