Marketing Channels

Which channel partners in a company’s supply chain are upstream from a manufacturer or producer?

• Suppliers

• Wholesalers

• Customers

• Retailers

Which of the following is a reason that producers use marketing channels and channel intermediaries?

• Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

• Using channel intermediaries increases the number of contacts with customers.

• Marketing channel decisions require only a short-term commitment.

• Using marketing channels allows producers to retain control over how and to whom they sell their products.

Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) ....

• administered VMS

• corporate VMS

• contractual VMS

• conventional distribution channel

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?

• An administered VMS.

• A conventional distribution channel.

• A contractual VMS.

• A corporate VMS.

Which of the following is an example of horizontal channel conflict?

• A Ford dealer complaining that another Ford dealer is advertising in its territory.

• A retailer complaining about a producer’s pricing.

• A consumer complaining to a retailer about the service he or she received.

• A retailer complaining about receiving damaged goods from a wholesaler.

Producers of ... typically use intensive distribution for their products.

• consumer electronics

• convenience goods

• luxury brands

• furniture

What is the first step in marketing channel design?

• Identifying the types of intermediaries to use.

• Analyzing consumer needs.

• Setting channel objectives.

• Identifying the number of intermediaries to use.

When setting channel objectives, companies should state the objectives in terms of ....

• targeted levels of customer service

• expected profitability

• competitor’s objectives

• the length of the channel