MARKETING CHANNELS: DELIVERING CUSTOMER VALUE

Producers benefit from using intermediaries because they ________.

• offer greater efficiency in making goods available to target markets

• bring a fresh point of view to strategy development

• eliminate risk

• are generally backlogged with orders

• refuse to store products for longer than a few days

Which of the following is NOT a key function that intermediaries play in completing transactions?

• promotion

• information

• negotiation

• financing

• matching

In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.

• depth

• complexity

• involvement

• length

• width

An advantage of a vertical marketing system (VMS) over a conventional distribution channel is that it acts as a ________ system.

• unified

• democratic

• socially responsible

• customer-driven

• task-driven

As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one?

• expanded sales

• expanded market coverage

• selling at a higher gross margin

• opportunities to tailor products and services to the needs of diverse segments

• A and D

Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones.

• the vertical marketing system

• the corporate marketing system

• disintermediation

• the corporate merger

• the hostile takeover

Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution.

• exclusive

• selected

• intensive

• administered

• corporate

Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process?

• planning the physical flow of goods and services

• implementing the plan for the flow of goods and services

• controlling the physical flow of goods, services, and information

• gathering customer's ideas for new products

• planning the flow of logistics information to meet customer requirements at a profit

Which of the following would be considered an upstream partner in a company's supply chain?

• a firm that resells a finished product and shares the net sales with the producer

• a firm that provides technical expertise in the production of a product

• a firm that markets a product to consumers through social media

• a firm that buys products at wholesale cost from the company

• a firm that exclusively markets a product to other businesses

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) ________ channel to distribute their offerings.

• functional

• indirect

• direct

• layered

• behavioral