marketing management ch 15 Flashcards

1) ________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.

2) Which of the following entities in the marketing channel is a merchant?

3) A(n) ________ is a facilitator who assists in the distribution process.

4) A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using?

5) Total Beverages, a maker of fruit juices and health drinks, recently launched a new brand of packaged drinking water called AquaPure. In order to induce distributors to carry the product, Total offers all its intermediaries a free refrigerator to store bottles of AquaPure. This is an example of a ________.

6) Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and also ropes in a famous athlete to endorse the product. This is an example of a ________.

7) When is a pull strategy appropriate?

8) Using the push strategy is most appropriate when ________.

9) A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing.

10) A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice?

11) Which of the following is the most accurate description of a value network?

12) Companies should first think of the target market and then design the supply chain backward from that point. This strategy is called ________.

13) Which of the following channel functions constitute only a backward flow?

14) Identify the channel function that constitutes both backward and forward flow.

15) Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

) Which of the following is an example of a zero-level channel?

17) Which of the following entities is present in a zero-level marketing channel?

18) A direct marketing channel is a ________.

19) A jobber in a three-level marketing channel is a(n) ________.

20) Which of the following activities is a reverse-flow channel of marketing?

21) Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?

22) As a service output produced by marketing channels, product variety refers to the ________.

23) Which of the following terms refers to the add-on services, such as credit, delivery, installation, and repairs, provided by a marketing channel?

24) Atburex is a furniture manufacturing company in the United States. The company provides a sixty day credit period and EMI options to customers and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs?

25) Which of the following types of distribution involves severely limiting the number of channel intermediaries?

26) Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?

27) Which of the following channel alternatives is most suited to handle complex products and transactions?

28) Which of the following is a major disadvantage of using the Internet as a marketing channel?

29) Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of ________ distribution.

30) Exclusive dealing arrangements are mainly used by companies looking for an edge in markets increasingly driven by ________.

31) An intensive distribution strategy serves well for ________.

32) Which of the following products is most likely to be sold using an exclusive distribution strategy?

33) Which of the following covers payment terms and producer guarantees?

34) ________ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient.

35) Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens, restaurants, hotels, and so forth. The company provides a one-year warranty on all products and also allows customers to pay in installments–they pay fifty percent on delivery and the rest as equal installments. This refers to which element in the "trade-relations mix"?

36) Which of the following channels is associated with the lowest cost per transaction?

37) Which marketing channel is associated with the highest value added per sale?

38) Which of the following problems is most likely when a sales agency is used instead of company salespeople?

Use of Power (Scenario)

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer", targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch.

39) In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

Use of Power (Scenario)

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer", targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch.

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power.

Use of Power (Scenario)

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer", targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch.

Broomer threatens to withdraw all its other products from the retailers' stores if they are unwilling to push products from the "Inducer" line. This is an example of ________ power.

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

43) A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

44) A manufacturer is using legitimate power when it ________.

45) Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation?

46) Which of the following types of power is objectively observable?

47) A new firm typically starts as a local operation selling in a fairly circumscribed market by ________.

48) Who will most likely be willing to pay for high-value-added channels?

49) A producer must modify its channel design and arrangements if ________.

What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?

51) A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system.

52) A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership.

53) The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.

54) Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores which sell its products. This is an example of a(n) ________ vertical marketing system.

55) An administered VMS coordinates successive stages of production and distribution through ________.

56) A(n) ________ VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

57) A group of small sellers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. This initiative is called a(n) ________.

58) In a retailer cooperative, ________.

59) A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk which are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing system can be observed here?

60) A franchise organization is an example of a(n) ________ vertical marketing system.

61) In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

62) Which of the following is a major advantage of adding more channels for selling?

63) ________ channel conflict occurs between channel members at the same level.

64) Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from its retailers that their orders are not delivered on time. They also complain that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict.

65) A franchisee owner is unsatisfied because the manufacturer provides more benefits to a wholesaler. This conflict is an example of a(n) ________ conflict.

66) A manufacturer wants to achieve rapid market penetration through a low-price policy. However, its dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is ________.

67) General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy.

68) RX Corp. is a large manufacturer of electronic goods and sells its products through distributors and retailers. In order to keep pace with the growing use of the Internet, the company decides to start selling online. The company faces stiff opposition from its retailers as they believe that this will significantly reduce their profits. The company attempts to eliminate this resistance by offering its retailers commissions for processing and delivering orders received via the Web. This is an example of which of the following conflict resolution strategies?

69) Co-optation is an effort by one organization to win the support of the leaders of another by ________.

70) Winstar is a large scale manufacturer which has more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using?

71) Which of the following channel conflict resolution techniques is used only if everything else proves ineffective?

72) Which of the following is the most complete and accurate description of a pure-click company?

73) A large retail chain in the United States decides to expand its operations by adding an online site for e-commerce. This is called a(n) ________ company.

74) An Internet service provider (ISP) is a(n) ________ company.

75) JSE Securities Exchange is the largest stock exchange in Africa. The JSE provides a market where securities can be traded freely under a regulated procedure. The company acts as an intermediary between the traders. JSE is an example of a(n) ________.

76) Exxon Consulting, works as an agent on behalf of business consumers to collect information on various industrial products. When faced with buying decisions, businesses can approach Exxon to obtain detailed information on the various options available to them. The company earns revenue by selling such information to various customers. Marten Consulting can be called

77) Consumer surveys suggest that one of the most significant inhibitors of online shopping is the absence of ________.

78) Which of the following is a major threat facing the brick-and-mortar manufacturers when they add an e-commerce channel?

79) Which of the following is an example of a brick-and-click company?

80) M-commerce refers to ________.