Q&A Hero

Q: IGA and Ben Franklin variety and craft stores are examples of A. service-sponsored retail systems. B. wholesaler-sponsored voluntary chains. C. retailer-sponsored cooperatives. D. administered cooperative systems. E. manufacturer-sponsored cooperatives.

Q: A vertical marketing system that involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts is referred to as a(n) __________. A. service-sponsored retail franchise system B. retailer-sponsored cooperative C. administered vertical marketing system D. manufacturer-sponsored retail franchise system E. wholesaler-sponsored voluntary chain

Q: There are three variations of contractual vertical marketing systems: retailer-sponsored cooperatives, franchising, and __________. A. service-oriented voluntary chains B. channel-dominated voluntary chains C. wholesaler-sponsored voluntary chains D. distributorship cooperatives E. reseller franchising

Q: There are three variations of contractual vertical marketing systems: wholesaler-sponsored voluntary chains, franchising, and __________. A. service-oriented voluntary chains B. channel-dominated voluntary chains C. distributorship cooperatives D. retailer-sponsored cooperatives E. reseller franchising

Q: There are three variations of contractual vertical marketing systems: wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and __________. A. franchising B. service-oriented voluntary chains C. channel-dominated voluntary chains D. distributorship cooperatives E. reseller franchising

Q: A contractual vertical marketing system refers to an arrangement whereby A. privately owned distributors and retailers integrate their efforts, on a contractual basis, to obtain greater functional economies and marketing impact than they could achieve alone. B. independent production and distribution firms integrate their efforts, on a contractual basis, to obtain greater functional economies and marketing impact than they could achieve alone. C. a manufacturer offers a limited number of franchise licenses to restrict the number of franchisees within a given geographical region. D. a firm reaches different buyers by employing two or more different types of channels for the same basic product. E. a firm formally designates by contract one channel member - whether producer, wholesaler, or retailer - to coordinate, direct, and support all other channel members.

Q: Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices A. backward integration. B. cooperative integration. C. vertical integration. D. joint venturing. E. horizontal integration.

Q: When a retailer owns a manufacturing operation, it is referred to as A. forward integration. B. lateral integration. C. a joint venture. D. horizontal integration. E. backward integration.

Q: Apple now operates over 400 Apple Retail Stores around the world to sell its innovative products such as the iPhone and iPad. Apple uses __________. A. dual distribution B. backward integration C. forward integration D. horizontal integration E. strategic channel alliances

Q: Forward integration means A. a retailer owns a manufacturing operation. B. a wholesaler owns a manufacturing operation. C. retailers form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders. D. a producer owns an intermediary at the next level down in the marketing channel. E. all links in the distribution chain own stock in the manufacturer's company.

Q: When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as __________. A. horizontal integration B. forward integration C. parallel integration D. lateral integration E. backward integration

Q: 21st Century Fox is the new name for its broadcast/cable TV networks and TV/movie studios. Since most of the shows produced at its TV production unit and many of the movies made at its studio are only televised on its cable TV networks, 21st Century Fox is an example of a(n) A. corporate vertical marketing system. B. integrated marketing system. C. contractual vertical marketing system. D. corporate horizontal marketing system. E. contractual horizontal marketing system.

Q: Cessna is considered the volume leader in the executive-jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna A. does not fall under the jurisdiction of any federal regulatory agency. B. owns several of the entities that would make up the traditional marketing channel. C. has eliminated economies of scale. D. has achieved a high level of social responsibility. E. uses outsourcing for all component parts and materials.

Q: A large company produces paint and other home decorating products. Its goal is to choose the marketing channel arrangement that would give it the most control over supply sources. Which marketing channel system should this company choose? A. a contractual vertical marketing system B. an administered vertical marketing system C. a corporate vertical marketing system D. an integrated marketing system E. a retailer-sponsored cooperative

Q: Which of the following statements regarding corporate vertical marketing systems is most accurate? A. Corporate vertical marketing systems combine successive stages of production and distribution under shared ownership with all links in the marketing chain sharing title to the goods. B. Corporate vertical marketing systems can use forward integration or backward integration but not both. C. Corporate vertical marketing systems increase distribution costs. D. Corporate vertical marketing systems result in increased capital investments and fixed costs. E. Corporate vertical marketing systems are only effective with low-end consumer products.

Q: Which of the following statements regarding corporate vertical marketing systems is most accurate? A. Corporate vertical marketing systems can use either forward integration or backward integration but not both. B. Corporate vertical marketing systems increase distribution costs. C. Corporate vertical marketing systems increase investment but decrease fixed costs. D. Corporate vertical marketing systems are only effective with low-end consumer products. E. Corporate vertical marketing systems offer more control over supply sources or resale of products.

Q: Which of the following statements regarding corporate vertical marketing systems is most accurate? A. Corporate vertical marketing systems require all links in the marketing chain to share title to the goods passed through these firms. B. Corporate vertical marketing systems can incorporate both forward and backward integration. C. Corporate vertical marketing systems increase distribution costs. D. Corporate vertical marketing systems increase investment increases but decrease fixed costs. E. Corporate vertical marketing systems are only effective with low-end consumer products.

Q: The combination of successive stages of production and distribution under a single ownership is referred to as a(n) __________. A. contractual vertical marketing system B. corporate vertical marketing system C. integrated marketing system D. corporate horizontal marketing system E. contractual horizontal marketing system

Q: A corporate vertical marketing system refers to A. small, independent retailers that form an organization that operates a wholesale facility cooperatively. B. professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. C. the combination of successive stages of production and distribution under a single ownership. D. professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. E. a contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a certain type of business under an established name and according to specific rules.

Q: The three major types of vertical marketing systems are corporate, contractual, and __________. A. administered B. integrated C. cooperative D. delegated E. manufacturer-dominated

Q: The three major types of vertical marketing systems are administered, corporate, and __________. A. integrated B. cooperative C. delegated D. manufacturer-dominated E. contractual

Q: Vertical marketing systems refer to A. professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. B. professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. C. retailer-sponsored cooperatives where small, independent retailers form an organization that operates a wholesale facility cooperatively. D. professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. E. channel partnerships that share responsibility for ordering and physically distributing each other's products.

Q: Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as __________. A. integrated marketing systems B. horizontal marketing systems C. vertical marketing systems D. functional marketing systems E. cooperative marketing systems

Q: The General Mills-Nestle strategic channel alliance A. increased the ready-to-eat cereal worldwide market share of these companies. B. served as a model for Post Cereal and Weetabix, a British firm. C. increased the hot cereal worldwide market share of these companies. D. increased the ready-to-eat cereal market abroad but decreased General Mills' hot cereal market share in the U.S. E. resulted in a lawsuit from Kellogg's, the global leader in the ready-to-eat cereal market, which cited unfair trade practices.

Q: CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestle. A. dual distribution partnership B. multichannel distribution system C. cooperative distribution channel D. strategic channel alliance E. bilateral trade cooperative

Q: An example of a(n) __________ is Kraft Foods using the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan. A. direct marketing channel B. industrial distribution system C. dual distribution system D. franchising operation E. strategic channel alliance

Q: Kraft Foods distributes Starbucks coffee in U.S. supermarkets and internationally. These firms are most likely using __________ strategy. A. multi-channel distribution B. a direct marketing channel C. a cooperative distribution channel D. a strategic channel alliance E. a dual distribution agreement

Q: Nestle and General Mills have __________ to distribute General Mills products like Cheerios in about 140 markets worldwide. A. multichannel distribution relations B. a direct marketing channel C. a cooperative distribution channel D. a strategic channel alliance E. a dual distribution agreement

Q: Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming? A. dual distribution B. cooperative distribution C. strategic channel alliance D. global distribution alliance E. multichannel distribution

Q: Strategic channel alliances refer to A. an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. B. a practice whereby one firm's marketing channel is used to sell another firm's products. C. the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. D. an arrangement whereby companies reduce distribution costs by sharing facilities, equipment, and transportation. E. a practice whereby consumers can interact with various advertising media to buy products without a face-to-face meeting with a salesperson.

Q: A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as __________. A. dual distribution B. cooperative distribution C. an integrated channel alliance D. a multichannel venture E. a strategic channel alliance

Q: Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and also sell them online. This would be an example of which type of marketing channel strategy? A. a strategic channel alliance B. multichannel distribution C. parallel distribution D. dual distribution E. direct distribution

Q: Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains like Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the U.S. What method of distribution best describes the method used by pharmaceutical companies in this example? A. dual distribution B. vertical distribution C. horizontal distribution D. direct distribution E. exclusive distribution

Q: In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy would be to __________ of the firm's family brand and differentiate its marketing channels. A. create greater perceived value B. maximize channel profits C. minimize cannibalization D. generate awareness E. create a backup channel

Q: Dual distribution refers to A. a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products. B. an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. C. the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. D. professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. E. a practice whereby one firm's marketing channel is used to sell another firm's products.

Q: An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as __________. A. a strategic channel alliance B. multiple level selling C. parallel distribution D. dual distribution E. recursive distribution

Q: Multichannel marketing A. creates greater elasticity of demand for its products. B. can leverage the value-adding capabilities of different channels. C. creates greater inelasticity of demand for its product. D. allows firms to legally circumvent paying taxes on revenue generated by online sales. E. allow customers to avoid shipping and handling charges.

Q: __________ seeks to leverage the value-adding capabilities of both electronic marketing and traditional delivery. Catalogs can serve as shopping tools for online purchasing, and websites can help consumers do their homework before visiting a store. A. Direct marketing B. Indirect marketing C. Intensive marketing D. Multichannel marketing E. Automated marketing

Q: Multichannel marketing is the blending of different __________ that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. A. pricing channels B. distribution channels C. communication and delivery channels D. direct and indirect channels E. communication channels

Q: The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online is referred to as __________. A. direct marketing B. indirect marketing C. intensive marketing D. multichannel marketing E. electronic marketing

Q: When you order a sweater from an L.L. Bean mail-order catalog, what type of marketing channel are you and the company using? A. cash and carry marketing channel B. intensive distribution channel C. selective distribution channel D. indirect marketing channel E. direct marketing channel

Q: Mail order selling, catalog sales, telemarketing, interactive media, and televised home shopping are all examples of A. direct marketing channels. B. indirect marketing channels. C. multimedia marketing channels. D. virtual marketing channels. E. personal selling.

Q: Direct marketing channels refer to A. the distribution of products and services directly from the manufacturer's production site to end-users. B. the traditional chain of distribution from manufacturer to retailer to consumer. C. the use of agents who represent a single producer and are responsible for the entire marketing function of that producer. D. a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. E. a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service.

Q: Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson is referred to as a(n) __________. A. indirect marketing channel B. direct marketing channel C. multimarketing channel D. channel bypass marketing E. personal selling

Q: MachineTools.com sells grinders, boring mills, and engine lathes. Its website lists products from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this A. electronic government channel. B. virtual marketing channel. C. World Wide Web networks. D. mediated channel. E. Internet marketing channel.

Q: Which of the following products or services must be provided by traditional and NOT by Internet marketing channels? A. car rental reservations B. software C. healthcare D. music E. education

Q: Employing the Internet to make products and services available for consumption or use by consumers or organizational buyers is referred to as __________. A. electronic distribution channels B. virtual marketing channels C. World Wide Web networks D. Internet marketing channels E. Web 3.0 marketing channels

Q: Internet marketing channels refer to A. the employment of the Internet to make products and services available for consumption or use by consumers or organizational buyers. B. a firm's computer driven inventory management through an entirely mechanized warehousing system. C. intranet systems linking all aspects of production within a single firm. D. information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings. E. the name given to all Internet addresses that end in ".com" to indicate that these websites are commercial entities that distribute goods and services.

Q: Figure 12-4 Figure 12-4 above depicts the four most common marketing channels for business products and services. Channel D would be an appropriate marketing channel for __________. A. Cray supercomputers B. Harkman electrical products C. Boeing aircraft D. Caterpillar tractors E. Fastenal industrial fasteners

Q: Figure 12-4 Figure 12-4 above depicts the four most common marketing channels for business products and services. Channel C would be an appropriate marketing channel for __________. A. IBM mainframe computers B. Caterpillar excavators C. Marathon electrical motors D. Stake industrial fasteners E. Bombardier aircraft

Q: Figure 12-4 Figure 12-4 above, depicts the four most common marketing channels for business products and services. Channel B would be an appropriate marketing channel for __________. A. Cray supercomputers B. GE magnetic resonance imaging (MRI) machines C. John Deere excavators D. Fastenal industrial fasteners E. Marathon electrical motors

Q: Figure 12-4 Figure 12-4 above depicts the four most common marketing channels for business products and services. Channel A would be an appropriate marketing channel for __________. A. Boeing aircraft B. Caterpillar lift trucks C. John Deere tractors D. Western Fence fencing systems E. Marathon electrical motors

Q: Figure 12-4 Figure 12-4 above depicts the four most common marketing channels for business products and services. Z represents A. consumers. B. industrial users. C. dual distributors. D. agents or brokers. E. industrial distributors.

Q: Figure 12-4 Figure 12-4 above depicts the four most common marketing channels for business products and services. Y represents A. consumers. B. industrial users. C. dual distributors. D. agents or brokers. E. industrial distributors.

Q: Figure 12-4 Figure 12-4 above depicts the four most common marketing channels for business products and services. X represents A. consumers. B. industrial users. C. dual distributors. D. agents or brokers. E. industrial distributors.

Q: International Products, a Burlington, New Jersey, firm that sells industrial cleansers and lubricants, wanted to sell its product to factories, hospitals, and labs in China, but it did not have the necessary expertise. As a result, International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of a(n) __________. A. agent B. wholesaler C. global agent D. retailer E. industrial distributor

Q: Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel? A. manufacturers B. retailers C. agents D. wholesalers E. brokers

Q: In a business marketing channel, an industrial distributor refers to A. an intermediary that performs a variety of marketing channel functions involving selling, stocking, delivering a full product assortment, and financing. B. an intermediary that maintains its own salesforce and performs all channel functions. C. an intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products. D. an intermediary that deals with a single product line within a single industry. E. an intermediary that performs functions involving selling, stocking, and delivery of industrial goods but is unable to provide financing due to the normally large expenditures.

Q: In marketing channels for business products, an intermediary that performs a variety of marketing channel functions including selling, stocking, delivering a full product assortment, and financing is referred to as a(n) __________. A. agent B. industrial distributor C. wholesaler D. retailer E. channel captain

Q: A small electronics company has begun production of a small line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the U.S. How should the small electronics company best distribute its new products? A. use its established indirect marketing channel B. distribute directly to mass market consumers C. distribute through agents who sell to specialty electronics stores that will feature the new line D. sell directly to specialty electronics stores that will feature the new line E. establish its own chain of electronics retail stores

Q: Figure 12-3 The most indirect marketing channel is employed where many small manufacturers and many small retailers and other intermediaries are used to help coordinate a large supply of the product. This channel is represented in Channel D in Figure 12-3 above. Which of the following products would most likely be marketed using this kind of channel? A. Aspen dental services B. Toyota automobiles C. Leslie pool supplies D. Jaipur rugs made in India E. Hershey's candy bars

Q: Figure 12-3 Figure 12-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel C would be an appropriate marketing channel for __________. A. Hershey's candy B. Toyota automobiles C. State Farm car insurance D. Aspen dental services E. Ticketmaster tickets to a rock concert

Q: Figure 12-3 Figure 12-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel B would be an appropriate marketing channel for which of the following? A. State Farm insurance services B. Schwan direct-to-home food products C. Toyota automobiles D. John Deere construction machinery E. Hershey's candy

Q: Figure 12-3 Figure 12-3 above depicts four common marketing channels for consumer products and services that differ by the kind and number of intermediaries. Channel A would be an appropriate marketing channel for which of the following? A. Toyota automobiles B. Shane Company jewelry C. John Deere construction machinery D. Hershey's candy E. State Farm insurance services

Q: Figure 12-3 Figure 12-3 above depicts the four most common marketing channels for consumer products and services. Z represents A. consumers. B. industrial users. C. wholesalers. D. agents or brokers. E. retailers.

Q: Figure 12-3 Figure 12-3 above depicts the four most common marketing channels for consumer products and services. Y represents A. consumers. B. industrial users. C. wholesalers. D. agents or brokers. E. retailers.

Q: Figure 12-3 Figure 12-3 above depicts the four most common marketing channels for consumer products and services. X represents A. consumers. B. industrial users. C. wholesalers. D. agents or brokers. E. retailers.

Q: List and briefly describe the four customer service factors that must be balanced in a logistics system.

Q: Figure 12-3 Figure 12-3 above depicts the four most common marketing channels for consumer products and services. W represents A. consumers. B. industrial users. C. wholesalers. D. agents or brokers. E. retailers.

Q: What are some specific cost trade-offs that can be made in a logistics system?

Q: The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there A. are only a few large manufacturers but many small retailers. B. are low-cost, low unit volume goods. C. is too large an inventory to be carried by wholesalers. D. are many small manufacturers and many small retailers. E. are many manufacturers with a limited inventory competing for a small group of retailers.

Q: What specific decision areas are associated with the flow of goods and together make up total logistics cost?

Q: A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when A. the cost of maintaining inventory is low. B. the cost of inventory makes it too expensive to use a wholesaler. C. there is little if any seasonal demand. D. the risk lies solely with the manufacturer. E. the retail outlets are regionally located.

Q: What are the three steps used in choosing a supply chain that aligns with an organization's marketing strategy?

Q: A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when A. the retail outlets are regionally located. B. the cost of maintaining inventory is low. C. there is little if any seasonal demand. D. the risk lies solely with the manufacturer. E. the retailer is large and can buy in large quantities from a producer.

Q: Briefly explain the differences between the terms supply chain management and the marketing channel.

Q: Indirect channels for consumer products A. occur when one firm's marketing channels are used to sell another firm's products. B. include producers and end-users dealing directly with each other. C. include intermediaries that are between the producer and consumer and perform numerous channel functions. D. are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. E. occurs when a retailer sells its product in a store and on the Internet.

Q: What is a channel captain? What is its function and how does it accomplish this?

Q: A channel that includes intermediaries that are between the producer and consumers and perform numerous channel functions is referred to as a(n) A. indirect channel. B. direct channel. C. multilevel channel. D. full-service channel. E. limited-service channel

Q: Channels are typically designed to satisfy one or more of four consumer interests. What are they and why are they important?