Designing and Managing Integrated Marketing Channels Essay

Planing and Managing Integrated Marketing Channels


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Multiple Choice

1. Mediators who buy. take rubric to. and resell the ware are called ________ .

2. Companies that search for clients and may negociate on the producer’s behalf but do non take rubric to the goods are called ________ .

3. Transportation system companies. independent warehouses. Bankss. and advertisement bureaus that assist in the distribution procedure but neither take rubric to goods nor negotiate purchases or gross revenues are called ________ .

4. One of the main functions of selling channels is to change over possible purchasers into profitable ________ . 5. A selling channel system is the peculiar set of ________ employed by a house. Decisions about the selling channel system are among the most critical facing a house.

6. A ________ scheme involves the maker utilizing its gross revenues force and trade publicity money to bring on mediators to transport. promote. and sell the merchandise to stop users.

7. A ________ scheme creates consumer demand through publicities and advertisement as a manner to bring on mediators to transport the merchandise.

8. Today clients expect channel integrating to work swimmingly. Which of the followers is NOT one of the features of channel integrating?

a. The ability to order the merchandise online and choice it up at a retail location

B. The ability to return an on-line purchase at the retail location

c. The right to have price reductions based on entire online and off-line purchases

d. Offering gift certifications that can be redeemed on-line and off-line
e. None of the above are features of channel integrating

9. By and large talking. purchasers fall into four classs. Which of the followers is NOT one of these classs? a. Habitual shoppers
b. High-value trade searchers
c. Low-involvement shoppers
d. Variety-loving shoppers
e. High-involvement shoppers
10. Shoppers who chiefly seek shops that suit people like themselves or members of groups they aspire to fall in are known as ________ .

11. A supply concatenation position of a steadfast sees markets as finish points and sums to a additive position of the flow. The company should foremost believe of the mark market and so plan the supply concatenation backward from that point. This position is called ________ .

12. A value web includes a firm’s providers and its suppliers’ providers. and its immediate clients and their terminal ________ .

13. Through their contacts. experience. specialisation. and graduated table of operation. mediators help houses _______ in doing goods widely available.

14. A selling channel overcomes the clip. topographic point. and ________ spreads that separate goods and services from those who need or want them. 15. Physical maps. title maps. and promotional maps are illustration of ________ flow of activity from the company to the client.

16. The inquiry sing the assorted channel maps is non whether or non they need to be performed but who is to execute them. All channel maps have three things in common. Which of the followers is NOT one of these channel maps? a. They use up scarce resources.

B. They can frequently be performed better through specialisation. c. They can be shifted among channel members.
d. They require significant investings by the manufacturer.
e. None of the above

17. A ________ channel consists of a maker selling straight to the concluding client.

18. Planing a selling channel system involves analysing client demands. ________ . placing major channel options. and measuring major channel options.

19. In planing the selling channel. the seller must understand the service end product degrees desired by the mark clients. Channels produce five service end products. Which of the followers is NOT one of these end products? a. Merchandise assortment

B. “Entertainment shopping experience”
c. Spatial convenience
d. Waiting and bringing clip
e. Lot size

20. Channel objectives should be stated in footings of ________ service end product degrees.

21. A channel option is described by three elements: the types of available concern mediators. the figure of mediators needed. and the ________ .

22. Companies make up one’s minding on the figure of mediators to utilize at each channel degree have three schemes available to them. They can utilize sole distribution. ________ distribution. and intensive distribution.

23. When the manufacturer wants to keep control over the service degree and end products offered by the resellers. it most probably will utilize ________ distribution.

24. By allowing ________ . the manufacturer hopes to obtain more dedicated and knowing merchandising. 25. With ________ . the company does non necessitate to worry approximately excessively many mercantile establishments ; it can derive equal market coverage with more control and less cost that intensive distribution.

26. Manufacturers are invariably tempted to travel from sole or selective distribution to more intensive distribution in order to ________ .

27. ________ distribution consists of the maker puting his goods and services in every bit many mercantile establishments as possible.

28. The chief elements in the “trade-relations mix” are monetary value policies. conditions of sale. ________ . and specific services to be performed by each party.

29. Each channel alternate demands to be evaluated against ________ . control. and adaptative standards. 30. One of the control issues of utilizing a gross revenues bureau as a channel spouse is that the gross revenues bureau is an independent house seeking to ________ .

31. After a company has chosen a channel option. single mediators must be ________ . trained. motivated. and evaluated.

32. It is of import for the company to choose its channel members carefully because to the clients. the channels _________ the company.

33. ________ can be defined as the ability to change channel members’ behavior so that they take actions they would non hold taken otherwise.

34. The five types of power available to the manufacturer to arouse cooperation from channel members includes all of the undermentioned EXCEPT ________ power. 35. In competitory markets with low entry barriers. the optimum channel construction will necessarily ________ over clip.

36. Sing distribution systems. one of the most hard determination that a
house must do at some clip involves ________ the channel scheme.

37. A conventional selling channel comprises a ( N ) ________ . jobber ( s ) . and retail merchant ( s ) . each moving in his ain opportunism.

38. A ( N ) ________ comprises the manufacturer. jobber ( s ) . and retail merchants ( s ) moving as a incorporate system.

39. A ( N ) ________ consists of independent houses at different degrees of production and distribution incorporating their plans on a contractual footing to obtain more economic systems or gross revenues impact than they could accomplish entirely. 40. Which of the followers is a type of contractual VMS?

a. Forte shops
B. Franchise organisations
c. Kiosks shops
d. Catalog shops
e. None of the above

41. When two or more unrelated companies put together resources or plans to work an emerging selling chance. it is called a ________ .

42. ________ occurs when a individual house uses two or more selling channels to make one or more client sections.

43. By adding more channels. companies can derive three of import benefits. First. they can increase their market coverage ; 2nd. they can take down channel costs ; and 3rd. they can supply ________ .

44. ________ is generated when one channel member’s actions prevent another channel from accomplishing its end.

45. ________ involves struggle between members at the same degree within the channel.

46. ________ means conflict between different degrees within the same channel.

47. ________ exists when the maker has established two or more channels that sell to the same market.

48. ________ occurs when channel members are brought together to progress the ends of the channel. as opposed to their ain potentially incompatible ends.

49. Causes of channel conflict include all of the followers. EXCEPT________ . a. end mutual exclusiveness
b. differences in perceptual experience
c. dependence
d. ill-defined ends and rights
e. channel power use

50. There are several mechanisms for effectual channel struggle direction. These include the undermentioned. EXCEPT ________ . a. frequent seller exchanging
b. superior ends
c. co-option
d. diplomatic negotiations
e. mediation

51. ________ is an attempt by one organisation to win the support of the leaders of another organisation by including them in advisory councils. board of managers. and the similar.

52. ________ means fall backing to a impersonal 3rd party who is skilled in pacifying the two parties’ involvements.

53. Manufacturers of strong trade names sometimes sell them to traders merely if the traders will take some or all of the remainder of the line. This pattern is called full-line forcing or ________ .

54. ________ describes the usage of electronic agencies and platforms to carry on a company’s concern. 55. ________ means that the company or site offers to
transact or ease the merchandising of merchandises or services online.

56. ________ means companies decide to buy goods. services. and information from assorted on-line providers.

57. ________ describes company attempts to inform purchasers. communicate. promote. and sell its merchandises and services over the Internet.

58. ________ are companies that have launched a Web site without any old being as a house.

59. ________ are bing companies that have added an on-line site for information and/or e-commerce. 60. For the brick-and-click companies. adding an e-commerce channel creates the menace of ________ from retail merchants. agents. agents. and other mediators.


101. Explain why the selling channel system is so of import to a house.

102. Explain the construct of a intercrossed channel distribution system.

103. Different consumers have different demands during the purchase procedure. Researchers Nunes and Cespedes argue that. in many markets. purchasers fall into four classs. List and briefly define these four classs.

104. Demand concatenation planning outputs several penetrations for makers who follow this position of the supply concatenation. Explain what these penetrations are and how companies can utilize them to their best advantage.

105. What are some of the advantages available to manufacturers utilizing mediators? 106. In planing a selling channel system. the seller must understand the service end product degrees desired by mark clients. Channels provide five service end products. List and briefly describe each of these end products.

107. Manufacturers are invariably tempted to travel from sole distribution or selective distribution to more intensive distribution. Give a ground why this might non be a good long-run scheme for a maker.

108. Explain the differences between a perpendicular selling system ( VMS ) and a conventional selling system?

109. The most advanced supply-distributor agreements for administrating VMSs affect distribution scheduling. Explain the constituents of distribution scheduling.

110. For a brick-and-click company to add e-commerce to its selling mix. the house must be cognizant that it creates the menace of a recoil from its channel spouses. The inquiry remains: How to sell both through mediators and online? Three schemes for successfully replying this inquiry were postulated in the chapter. List and briefly define these three schemes.


Multiple Choice

111. Your merchandise enjoys high trade name trueness and high engagement in the class. It has perceived differences that consumers recognize between trade names and is one of the few that its consumers choose before choosing the retail store/Web site to buy the merchandise. Which publicity scheme would keep the greatest chance for incremental gross revenues for your merchandise?

112. Your merchandise has low trade name trueness in its class ; trade name pick is frequently made by the consumer in the shop. frequently at the really minute of purchase. Which publicity scheme would keep the greatest chance for incremental gross revenues for your merchandise? 113. When pull offing a intercrossed channel. the channel director must guarantee that these different channels work seamlessly in the consumer’s sentiment. When the consumer can order a merchandise online and choice it up at the nearby retail shop or be able to return the Internet-ordered merchandise to the retail shop. we province that the channel has ________ .

114. Jenny gathers information from a assortment of channels. carry oning extended research on the advantages/disadvantages of the merchandises available. She visits a figure of costly retail merchants. asks legion inquiries. and tries many of the merchandises. When the clip comes to buy. she ever purchases through the lowest-cost channel. Jenny is best described as a ________ .

115. Palm. the taking maker of hand-held devices. consists of a whole community of providers and assembly programs of semiconducting material constituents. fictile instances. LCD shows. and accoutrements ; of off-line and on-line resellers ; of 275. 000 developers in the Palm Developer Network who have created over 21. 000 package plans and 100 hardware additions for the Palm operating system for hand-held computing machines and smartphones. Combined. these make up Palm’s ________ .

116. A company merchandising exercising equipment may necessitate to set up three channels of distribution—a gross revenues channel. a bringing channel. and a ________ . 117. Tupperware manufactures kitchen goods and has its representatives sell them through place parties. This is an illustration of a ________ .

118. ________ trades between providers and retail merchants. such as Disney’s Consumer Products trade with Wal-Mart. are going a pillar for specializers looking for an border in a concern universe that is progressively driven by monetary value.

119. In turn overing out your company’s newest merchandise. you decided to utilize manufacturers’ representatives as your gross revenues agents. Part of your ________ was to set up districts based upon counties per province.

120. The gross revenues of your merchandise are low compared to your competition. The
determination facing you is whether to utilize a gross revenues bureau ( agents. manufacturers’ representatives ) or engage a field gross revenues force. The fixed costs of prosecuting a gross revenues bureau are lower than those of set uping a company gross revenues force. but costs rise quicker through an bureau. When calculating out gross revenues and costs. the intersection of the costs between gross revenues bureaus and gross revenues force ( SB ) means that ________ . 121. Rolex is really selective when taking the retail merchants that will sell its tickers. The company needs to see its retail merchant in the same manner as it views its terminal users. The house needs to find intermediaries’ demands and concept a channel placement such that its channel offering is tailored to supply ________ to these retail merchants.

122. As more adult females entered the work force and were unavailable to Avon’s traditional door-to-door system for selling cosmetics. Avon ventured into selling its cosmetics in JCPenney. Avon revised its channel scheme due to ________ .

123. When Kodak coordinates consecutive phases of production and distribution and receives cooperation from major retail merchants in connexion with shows. shelf infinite. publicities. and pricing policies due entirely to Kodak’s size and power. we call this a ( N ) ________ .

124. The outgrowth of rental auto counters. hair salons. Bankss. and dry cleaners found in such shops as Wal-Mart. Target. food market retail merchants. and others is an illustration of ________ selling systems. 125. As a recent college alumnus. you dream of opening up your ain concern. You have explored franchising. In fact. one of the companies that you are strongly interested in is a service organisation ( fast nutrient ) that has a whole system designed to convey its service expeditiously to consumers. This is an illustration of a ________ .

126. A soft-drink dressed ore manufacturer makes a 20 % border on its regular sodium carbonate and 25 % on its diet version of the same drink. The soft-drink bottlers. nevertheless. are required to sell both the regular and diet versions to the retail merchants at the same monetary value. This is a authoritative illustration of ________ .

127. In make up one’s minding to take your merchandise to market. one of the first considerations must be your channel or channels of distribution. If you decide to sell your merchandise ( a ) in sole franchisee operations and ( B ) to mass distributors/retailers at the same time. to the same mark market. this may take to a ________ .

128. As a selling director for a national company that uses agents as your field gross revenues agents. you suggest to your senior direction the creative activity of an “advisory team” composed of retail merchants. nutrient agents. gross revenues directors. and inside selling and direction forces. Your aim is to win support of the leaders of another organisation by including them in be aftering treatments. You are recommending what type of struggle direction declaration? 129. The text would specify eBay. a 3rd party that creates markets by associating purchasers and Sellerss. as a ________ .

130. Harley-Davidson’s entry into the Web for their parts and accoutrement concern called for them to “protect” their retail merchants by mentioning clients to the local Harley-Davidson trader. One extra scheme available to houses wishing to protect their channels of distribution yet capitalise on Internet gross revenues is ________ .

Short Answer

131. Specify the term “marketing channels. ”

132. Why is a selling channel system so of import to the maker?

133. The ability by the consumer to entree information via the Internet. behavior concern minutess either by phone. Internet. or in individual is an illustration of a company utilizing what type of selling channels?

134. When you deliver the merchandises to the client. exchange rubric of the goods. or even carry on a gross revenues publicity. you are carry oning a forward flow of activity through the channel. Explain the elements for a backward flow from clients to the company.

135. In puting up your distribution channel. you note that you must account for the physical transportation of the merchandise from your location to the consumer and must have payment for the goods sold. These are portion of the channel maps. All channel maps must be performed and have three things in common. List the three things that all maps have in common.

136. Your company has decided to utilize a distribution channel that consists of a jobber. a middleman. and a retail merchant to make your concluding consumer or user of your merchandise. How many channel degrees are involved in the distribution of your merchandise to the concluding user?

137. When we talk about manufacturers’ salvation centres. community groups. trash-collection specializers. recycling centres. and cardinal processing warehouses. we are speaking about what sort of distribution channels?

138. The ability of a shopper of laundry detergents to see a food market retail merchant and see a broad assortment of trade names. sizes. and units for purchase is an illustration of what elements of the channel service end product?

139. As the “channel manager” for your house. you have been asked by senior directors to place new distribution channels for the launch of a new merchandise. Your presentation describes a channel option as holding three sets of elements. What are the three elements that would be contained in your presentation?

140. A prima maker of tickers maintains a set of really sole webs of retail merchants ( sole distribution ) that are authorized to sell its tickers. This exclusivity ensures that the company can command the service degree. distribution. and end products offered by the retail shops making concern with them. Recently. nevertheless. there has been force per unit area on the company ( by Wall Street investors ) to spread out its merchandises to more and more retail merchants ( intensive distribution ) in order to increase gross revenues. What are some of the dangers that the company might meet when traveling from one signifier of distribution to another?

141. List the chief elements in the “trade-relations mix” between manufacturers and channel members.

142. As the channel director at a consumer merchandises house. you develop a channel inducement plan in which channel members receive an excess 2 % price reduction on all purchases when the channel members agree to go through half of this price reduction along to their clients in footings of a monetary value diminution. This is an illustration of what type of channel power?

143. When you purchase a Subway franchise. the corporate office delivers to you an full system designed to convey the services expeditiously to the consumer. This is an illustration of what type of contractual VMS?

grosss. When independent operators such as oculists or nail and hair salons locate in the front portion of selected retail superstores. this is an illustration of what type of marketing system?

145. A text edition maker uses a direct gross revenues force to make the college market. a telemarketing division to make little independent bookshop proprietors. and rack middlemans to make retail mercantile establishments. This is an illustration of what type of marketing systems?

146. What three of import benefits can companies derive by adding more channels?

147. Identify four things that sellers can make to break incorporate their online and off-line channels.

148. You own a franchise of a national concatenation of speedy tiffin repasts. The corporate office is carry oning a countrywide selling run presenting a $ 5. 00 value repast option. This $ 5. 00 value repast option badly cuts into you runing borders. Numerous ailments to the corporate office have resulted in the corporate office taking the place that “the franchisees need to be competitory and this $ 5. 00 repast is competitory. ” You disagree. observing that even with an addition in shop traffic. the decrease in gross and border produced by this value bill of fare will ensue in a net loss for your shop. What type of channel struggle is apparent here?

149. When one Pizza Hut franchisee noticed that his opposite number in the south portion of town was utilizing “nonapproved” ingredients in its Pizza Hut pizzas. he complained to the franchise office. This is an illustration of what type of channel struggle?

150. In puting up your company’s channel of distribution. you arranged for the company’s merchandises to be carried by a choice set of mercantile establishments and required that these mercantile establishments non transport competitory merchandises. What are the benefits to the company and to the distributer in come ining into such an sole distribution and sole covering agreement?