Integrated Marketing Channels Exam Review
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Questions and Answers

Which of the following is NOT a type of channel member?

  • Manufacturers (correct)
  • Agents
  • Facilitators
  • Merchants

    • Channel conflict can be classified into horizontal and vertical types.

    True

    What are the two main types of distribution channels?

    Direct and Indirect

    The three types of channel members are merchants, agents, and __________.

    <p>facilitators</p> Signup and view all the answers

    Match the following channel members with their respective roles:

    <p>Merchants = Buy, take title to, and re-sell products Agents = Negotiate on behalf of manufacturers Facilitators = Provide logistical and financial support Retailers = Sell products directly to consumers</p> Signup and view all the answers

    Which of the following describes the role of marketing channels?

    <p>To handle logistics and transactions</p> Signup and view all the answers

    Pull strategy focuses on pushing products to retailers and customers.

    <p>False</p> Signup and view all the answers

    Name one advantage of using a direct distribution channel.

    <p>Faster delivery to customers</p> Signup and view all the answers

    Which distribution strategy focuses on maximizing market coverage?

    <p>Intensive distribution</p> Signup and view all the answers

    Vertical channel conflict involves members at the same level of the distribution channel.

    <p>False</p> Signup and view all the answers

    What are some common causes of channel conflict?

    <p>Goal incompatibility, unclear roles, disintermediation, profit margin conflict, inadequate attention.</p> Signup and view all the answers

    A sales agency charging a ______ commission per batch can be a cost-effective strategy for some companies.

    <p>15%</p> Signup and view all the answers

    Match the type of conflict with its description:

    <p>Horizontal channel conflict = Conflict between retailers at the same level Vertical channel conflict = Conflict between different levels of the channel Goal incompatibility = Different goals among channel members Disintermediation = Removal of intermediaries in the supply chain</p> Signup and view all the answers

    What is the primary factor to consider when establishing economic goals for a distribution channel?

    <p>Cost/Benefit of Channel</p> Signup and view all the answers

    Calculate the break-even sale quantity for hiring a sales force versus using the Dunder-Mifflin sales agency.

    <p>300 batches</p> Signup and view all the answers

    Using a pull strategy means promoting products directly to consumers to stimulate demand.

    <p>True</p> Signup and view all the answers

    A firm using an indirect distribution channel has a closer contact with its customers.

    <p>False</p> Signup and view all the answers

    Convenience products usually employ selective distribution.

    <p>False</p> Signup and view all the answers

    Among different types of channel alternatives, which has the lowest cost per transaction?

    <p>Internet</p> Signup and view all the answers

    Franchise organizations, such as Subway, fall under which type of Vertical Marketing System?

    <p>Contractual</p> Signup and view all the answers

    What are the three roles of marketing communications?

    <p>inform, persuade, and remind</p> Signup and view all the answers

    The IMC mix consists of advertising, sales promotions, PR, sales force, events and experiences, and ________ marketing.

    <p>digital</p> Signup and view all the answers

    Match the following budgeting methods with their descriptions:

    <p>Affordable method = Spending on marketing communications based on what the firm believes it can afford Percentage-of-sales method = Allocating a fixed percentage of sales for marketing communications Competitive-parity method = Setting budgets based on competitors' spending Objective-and-task method = Determining the budget based on specific objectives and the tasks required to achieve them</p> Signup and view all the answers

    Sales promotions can be easily duplicated by competitors and abused by final customers.

    <p>True</p> Signup and view all the answers

    What type of advertising focuses on non-product-related benefits and image?

    <p>Transformational appeals</p> Signup and view all the answers

    Celebrity endorsements are not considered a message source.

    <p>False</p> Signup and view all the answers

    Name one method used to establish a marketing communications budget.

    <p>Affordable method</p> Signup and view all the answers

    The highest promotional budget of Kellogg's is spent on __________.

    <p>Corn Flakes</p> Signup and view all the answers

    Match the following message sources with their appropriate use case:

    <p>The firm’s CEO = Increase sales of juices A celebrity = Promote unique products An expert = Promote vocational education A real customer = Showcase personal experiences</p> Signup and view all the answers

    Which appeal might evoke feelings of guilt or shame in advertising?

    <p>Negative Appeals</p> Signup and view all the answers

    The percentage-of-sales method is typically used to budget based on past sales figures.

    <p>True</p> Signup and view all the answers

    The method where a company determines budget based on what competitors are spending is called __________.

    <p>Competitive-parity method</p> Signup and view all the answers

    Which IMC budgeting method is being used if an accountant has $20,000 for advertising and seminars?

    <p>Affordable method</p> Signup and view all the answers

    In the growth stage of the Product Life Cycle (PLC), the main objective of Integrated Marketing Communications (IMC) is to create primary demand.

    <p>False</p> Signup and view all the answers

    Name two advantages of using digital marketing over traditional marketing.

    <p>Tailored messages and traceable results</p> Signup and view all the answers

    Digital marketing includes various strategies like SEO, SEM, and __________.

    <p>social media marketing</p> Signup and view all the answers

    Which of the following is a disadvantage of digital marketing?

    <p>Bogus clicks</p> Signup and view all the answers

    Match the following digital marketing technologies with their respective descriptions:

    <p>SEO = Improving the visibility of a website in search engines SEM = Advertising placed on search engine results Email marketing = Using emails to promote products or services Content marketing = Creating and distributing valuable content</p> Signup and view all the answers

    Advertising is considered an efficient way to reach large numbers of people.

    <p>True</p> Signup and view all the answers

    What does the acronym CRM stand for in marketing?

    <p>Customer Relationship Management</p> Signup and view all the answers

    What is the formula for calculating the Click-through Rate (CTR)?

    <p>clicks / impressions</p> Signup and view all the answers

    A second-price ad auction means that the highest bidder pays their own bid amount.

    <p>False</p> Signup and view all the answers

    Define 'impression' in the context of digital advertising.

    <p>An impression is counted each time an ad is shown.</p> Signup and view all the answers

    CPA stands for __________.

    <p>Cost per Action</p> Signup and view all the answers

    Match the following payment schemes with their descriptions:

    <p>CPM = Cost per Thousand Impressions CPC = Cost per Click CPA = Cost per Action CTR = Clicks divided by Impressions</p> Signup and view all the answers

    Which payment scheme is most popular in search ads?

    <p>CPC</p> Signup and view all the answers

    The Conversion Rate is determined by dividing conversions by impressions.

    <p>False</p> Signup and view all the answers

    What is the click-through rate (CTR) if an ad is shown 1000 times and receives 40 clicks?

    <p>4%</p> Signup and view all the answers

    Study Notes

    Exam 3 Review

    • Exam 3 is comprehensive, covering all semester material, with a focus on the material after Exam 2.
    • Required materials include lecture slides, readings (Dolan), 4 Harvard Business School (HBS) cases, in-class assignments, and videos.
    • The exam format will be similar to previous exams, including multiple choice, short answer, essay, and calculations questions.
    • The exam will be closed-book, notes, and internet.
    • The exam is approximately one hour long.
    • The exam will be available on Canvas.
    • Calculators and scratch paper are permitted.

    Designing and Managing Integrated Marketing Channels

    • Marketing channels are sets of interdependent organizations involved in making products or services available for use or consumption.
    • Three types of channel members:
      • Merchants (wholesalers, retailers): Buy, take title to, and resell products.
      • Agents: Brokers, sales agents, manufacturer representatives: Search for customers and negotiate prices.
      • Facilitators: Transportation, banks, warehouses (support the flow of goods).

    Learning Objectives

    • Understanding marketing channels: their role, importance, and value, and types of channel members.
    • Channel structure: direct vs. indirect channels.
    • Channel design decisions: distribution intensity, retailer fit, pull vs. push strategies, and channel alternatives.
    • Channel conflict and integration: Horizontal vs. vertical.

    Sample Questions

    • What's the difference between merchants and agents in a marketing distribution channel?
    • Identify and explain two advantages of the direct distribution channel over indirect channels.
    • Explain the difference between horizontal and vertical conflict, including an example.
    • What are the steps involved in developing an effective marketing communication campaign?

    Value, Role, and Importance of Distribution Channels

    • Connect producers to customers efficiently.
    • Handle transactions, logistics, financing, and post-sale support.
    • Collect and disseminate information to stimulate demand.
    • Place orders with manufacturers.
    • Negotiate prices and reach agreements.
    • Assume business risks.

    Channel Length

    • Direct channels: Producer deals directly with consumers (e.g., manufacturer-owned stores, internet). Advantages: more control, closer customer contact, elimination of double margins.
    • Indirect channels: Intermediaries (e.g., wholesalers, retailers) exist between producer and consumer. Advantages: rapid penetration, broader coverage, benefits of specialization.

    Channel Design Decisions

    • Examine target customers' location, needs, and behaviors.
    • Evaluate product objectives and constraints (e.g., perishability, size, complexity, value).
    • Consider economic goals (cost/benefit), competitive factors, desired levels of control, service, and coverage. Distribution strategies such as exclusive, selective, or intensive distribution.

    Identifying and Evaluating Channel Alternatives

    • Channel alternatives are shown in a graph illustrating the relationship between value-add of sale and cost per transaction.

    Sales Agency or Sales Force?

    • Examines the decision when a product manufacturer needs a salesforce versus a sales agency.

    Channel Conflict

    • Channel conflict occurs when one channel member's actions impede another channel member's ability to achieve their goals.
    • Horizontal conflict: Between channel members at the same level (e.g., two retailers competing).
    • Vertical conflict: Between channel members at different levels (e.g., retailer and manufacturer).

    Channel Integration and Systems

    • Conventional marketing channels.
    • Double marginalization.
    • Vertical marketing systems (VMS): Producer, wholesaler(s), and retailers acting as a unified system (Corporate, contractual).

    Pepsi Case

    • PepsiCo's channel structure: On-premise, vending, retail stores.
    • Relationship with bottlers/distributors.
    • Pull vs. Push strategy.
    • Distribution intensity.

    Integrated Marketing Communications (IMC)

    • Learning Objectives:
      • Role of marketing communications—to inform, persuade, and remind.
    • IMC Mix:
      • Advertising, sales promotions, public relations (PR), sales force, events and experiences, and digital marketing (online, social, mobile).
    • Communication process: IMC and buyer-readiness stage, developing effective communication, and budgeting IMC.
    • IMC and Product Life Cycle:
      • Introduction stage (inform, primary demand, attract channel members).
      • Growth stage (inform, persuade, selective demand, build and strengthen channel relationships).
      • Maturity stage (persuade, remind, build and maintain brand loyalty).
      • Decline stage (decrease costs, increase to slow decline).

    Creative Strategy

    • Informational Appeals: Logically focused; uses attributes, benefits, and endorsements to convince consumers.
    • Transformational Appeals: Focuses on non-product related benefits and an image-building approach; emphasizes experiences.

    Message Source

    • Credibility: Expertise, trustworthiness, and likeability affect the persuasiveness of a message. Examples of specific source choices in commercials.

    Establishing a Marketing Communications Budget

    • Methods:
      • Affordable method.
      • Percentage-of-sales method.
      • Competitive-parity method.
      • Objective-and-task method.

    Managing Digital Communications

    • Learning Objectives: Pros and cons of digital marketing communications, different digital tools/technologies for communicating to customers, SEO and SEM differences, online advertising, key concepts: impressions, clicks, CTR, CPC, CPM, CPA.

    Digital Marketing

    • Describes the process of marketing products or services using digital technologies including internet desktop, mobile phones and tablets. Specific examples of such techniques are listed.

    Sample Questions Exam 3

    • True or false questions.
    • Multiple-choice questions covering various topics.

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    Chapman University Argyros School of Business and Economics Exam 3 Review PDF

    Description

    Prepare for your Exam 3 with this comprehensive review that covers all semester materials, focusing on content following Exam 2. You'll find essential resources like lecture slides, readings, HBS cases, and in-class assignments to guide your study. Familiarize yourself with the exam format to enhance your performance.

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