9. MKT 201 - Chapter 12 - Marketing Channels

What statement best describes the term 'upstream partners'?

• Upstream partners are organizations that collaborate on marketing and promotional strategies for the company's products.

• Upstream partners refer to competitors in the market who influence the supply chain indirectly through competition.

• Upstream partners are the customers and retailers who distribute the company's products to the end users.

• Upstream partners involve suppliers to the company (manufacturers).

What statement best describes the term 'downstream partners'?

• Downstream partners are the marketing channels or distribution channels that look toward the customer, including retailers and wholesalers.

• Downstream partners include logistics firms responsible for transporting raw materials to manufacturing facilities.

• Downstream partners are suppliers that provide raw materials and components to the company for production.

• Downstream partners are organizations involved in post-purchase services, such as customer support and product maintenance.

Which of the following is not an advantage of having a distributor?

• A manufacturer has to interact with millions of customers if there were no intermediaries and/or distributors.

• Retailers get the product to the customer and the manufacturer advertises for it.

• Distributors limit the control manufacturers have over pricing and promotional strategies, making it harder for manufacturers to maintain brand consistency.

• It is simpler for customers to go to one retailer for all of their products rather than going to each and every manufacturer.

Which of the following is incorrect regarding direct marketing channels?

• A direct marketing channel is most effective for mass-market products that require broad reach and high-volume distribution.

• A direct marketing channel is a marketing channel that has no intermediary levels.

• A direct marketing channel involves the company selling directly to the customer.

• A benefit to direct marketing channels include customizing the product to customer needs.

Which of the following is incorrect regarding indirect marketing channels?

• An indirect marketing channel is a marketing channel containing one or more intermediary levels.

• An indirect marketing channel involves the company selling to intermediaries (wholesalers/retailers), who then sell the product to the customer.

• An indirect marketing channel is most effective for niche products that require highly specialized customization for individual customers.

• A drawback to indirect marketing channels include retailers may push competitors’ products over the firm’s products.

Which statement best explains the term 'channel conflict'?

• Channel conflict refers to issues arising from miscommunication between suppliers and end customers.

• Channel conflict refers to disagreement among channel members over goals, roles, and rewards.

• Channel conflict occurs when competitors in the same market disagree on pricing strategies.

• Channel conflict refers to disputes between marketing and sales teams over revenue allocation.

Which statement best explains to when a vertical channel conflict may occur?

• A vertical channel conflict occurs when there is a disagreement between the company and the intermediaries, such as price issues.

• A vertical channel conflict occurs when two competitors collaborate on a marketing campaign but fail to align strategies.

• A vertical channel conflict happens only when a retailer promotes products that are not aligned with the manufacturer’s interests.

• A vertical channel conflict occurs due to the inability of different manufacturers to cooperate on shared supply chains.

Which statement best explains to when a horizontal channel conflict may occur?

• A horizontal channel conflict occurs when a retailer disputes with a manufacturer about promotional activities.

• A horizontal channel conflict happens when companies in different markets fail to align their distribution strategies.

• A horizontal channel conflict occurs due to inefficiencies in the vertical supply chain structure.

• A horizontal channel conflict occurs when there is a disagreement between two companies at the same level, such as competitors that are working side by side.

Which statement best describes the term 'disintermediation'?

• Disintermediation involves technology reducing the need for traditional supply chains as it is now easier for companies to access consumers through online and social media.

• Disintermediation refers to the process of streamlining supply chains by automating intermediary operations without removing them entirely.

• Disintermediation occurs when manufacturers bypass their distributors to sell directly to wholesalers or retailers.

• Disintermediation is the practice of outsourcing logistics and distribution to third-party service providers to reduce internal costs.

A firm is choosing between which channel distributions to pick, what are the 3 marketing distribution strategies that it can use?

• Intensive distribution, which is used for widely available products in massive amounts, such as groceries.

• Exclusive distribution, which is used for speciality and luxury products that are narrowly available.

• Selective distribution, which is in between intensive and exclusive, such as shoes and clothes.

• All of the above are strategies that it can use, but it mainly depends on the product that they are selling.