Marketing Distribution Channels Quiz
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Questions and Answers

Which type of distribution involves making a product available in as many outlets as possible?

  • Targeted Distribution
  • Selective Distribution
  • Exclusive Distribution
  • Intensive Distribution (correct)

What is a key characteristic of exclusive distribution?

  • It requires dealers to provide extensive after-sales service.
  • A limited number of dealers have exclusive rights to sell products in designated areas. (correct)
  • Multiple dealers are allowed to distribute in a territory.
  • Products are made available in every retail outlet.

Which of the following is NOT a criterion used for evaluating major channel alternatives?

  • Economic criteria
  • Marketing mix adoption (correct)
  • Control issues
  • Adaptive criteria

For which type of products is selective distribution primarily used?

<p>Shopping Goods (B)</p> Signup and view all the answers

What does channel management primarily involve?

<p>Evaluating channel members and maintaining relationships. (A)</p> Signup and view all the answers

What is a marketing/distribution channel?

<p>A collection of independent organizations that help deliver a product or service to consumers. (C)</p> Signup and view all the answers

How do intermediaries primarily add value in distribution channels?

<p>By reducing the number of necessary transactions to deliver products. (C)</p> Signup and view all the answers

Which of the following best describes upstream partners?

<p>Firms that provide raw materials and resources required for production. (A)</p> Signup and view all the answers

What is a significant benefit of having a strong distribution system?

<p>Enhanced competitive advantage. (A)</p> Signup and view all the answers

What does the term 'value delivery network' refer to?

<p>A cooperative relationship between a company and its suppliers, distributors, and customers. (D)</p> Signup and view all the answers

Which of the following is NOT a function typically assigned to channel members?

<p>Inventory Control (A)</p> Signup and view all the answers

What type of conflict arises among firms at the same channel level?

<p>Horizontal conflict (A)</p> Signup and view all the answers

What is the purpose of channel levels in a distribution channel?

<p>To describe each marketing intermediary's role in moving products closer to buyers. (D)</p> Signup and view all the answers

Which type of marketing channel consists of independent businesses aiming to maximize their own profits?

<p>Conventional marketing channel (B)</p> Signup and view all the answers

What characterizes a Vertical Marketing System (VMS)?

<p>All channel members act as a unified system. (A)</p> Signup and view all the answers

What is the function of matching within distribution channels?

<p>To align consumer demand with product supply. (A)</p> Signup and view all the answers

What is a key feature of a Corporate Vertical Marketing System?

<p>Common ownership oversees the production and distribution stages. (A)</p> Signup and view all the answers

Which of the following best describes horizontal conflict in marketing channels?

<p>Conflicts occurring among retailers in the same market segment. (A)</p> Signup and view all the answers

In which system do independent firms at different levels of distribution join together through contracts?

<p>Contractual Vertical Marketing System (D)</p> Signup and view all the answers

What type of channel conflict happens between a parent company and its resellers?

<p>Vertical conflict (D)</p> Signup and view all the answers

The Administered Vertical Marketing System coordinates production and distribution primarily through which factor?

<p>The size and power of one party (D)</p> Signup and view all the answers

What is a defining characteristic of a horizontal marketing system?

<p>Companies at the same level join to exploit a marketing opportunity. (A)</p> Signup and view all the answers

Which of the following best exemplifies a multichannel distribution system?

<p>A coffee shop that sells in-store and through grocery distributions. (C)</p> Signup and view all the answers

What primary objective should be considered when setting channel objectives?

<p>The targeted level of consumer service. (D)</p> Signup and view all the answers

In the context of channel design decisions, what does disintermediation refer to?

<p>Removal of intermediaries from the supply chain. (B)</p> Signup and view all the answers

Which factor is NOT typically considered when analyzing consumer service needs?

<p>The historical sales data of competing companies. (B)</p> Signup and view all the answers

Which distribution type allows for the widest market coverage?

<p>Intensive distribution. (A)</p> Signup and view all the answers

In terms of identifying major alternatives, which type of intermediary involves a higher level of direct relationship with consumers?

<p>Company sales force. (A)</p> Signup and view all the answers

Which is a key consideration when evaluating major alternatives in channel design?

<p>The roles of each channel member in terms of service. (B)</p> Signup and view all the answers

Flashcards

Marketing Channel

A group of interconnected organizations (intermediaries) helping get a product or service to consumers.

Distribution Channel Functions

Activities like risk-taking, financing, promotion, physical distribution, and negotiation, done by channel members.

Channel Level

Each layer of intermediaries involved in getting a product to the final buyer.

Value Delivery Network

A network including the company, suppliers, distributors, and customers, working together for better customer value.

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Upstream Partners

Companies supplying the raw materials or parts needed to create a product or service.

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Downstream Partners

Companies involved in delivering products to the end customer.

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Channel Problems

Issues companies face in designing and managing distribution channels.

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Nature of Distribution Channels

The characteristics and importance of the network of intermediaries involved in delivering goods and services.

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Channel Conflict

Disagreements among channel members (e.g., retailers, wholesalers) due to differing roles, activities, or rewards.

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Horizontal Conflict

Channel conflict between firms at the same level (e.g., retailers competing with each other).

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Vertical Conflict

Channel conflict between firms at different levels (e.g., manufacturer and retailer).

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VMS (Vertical Marketing System)

A unified channel where producers, wholesalers, and retailers work together, often through ownership or strong contracts.

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Corporate VMS

A VMS where different stages of production and distribution are under one ownership.

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Contractual VMS

A VMS where independent firms join via contracts to achieve a unified goal.

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Administered VMS

A VMS where one powerful member coordinates the channel.

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Conventional Marketing Channel

A channel where independent members primarily focus on maximizing their individual profits, potentially at the expense of overall channel profits.

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Horizontal Marketing System

Two or more companies at the same level joining to pursue a new market opportunity.

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Multichannel Distribution System

A marketing strategy using more than one distribution method.

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Disintermediation

Removing intermediaries from a supply chain.

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Channel Design Decisions

The process of figuring out how a company will get its products to consumers.

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Analyzing Consumer Needs

Understanding customer preferences regarding buying location, services, and channels.

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Setting Channel Objectives

Determining goals related to customer service levels in a distribution channel.

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Identifying Distribution Alternatives

Choosing between Intensive, Selective, or Exclusive distribution methods.

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Evaluating Distribution Alternatives

Comparing different choices for distribution based on factors like cost and consumer needs.

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Intensive Distribution

Putting products in as many places as possible, like convenience goods.

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Selective Distribution

Using some, but not all, intermediaries. Used for shopping goods.

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Exclusive Distribution

Limiting the number of dealers to sell specialized goods.

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Channel Evaluation criteria

Economic measures (profitability, sales), control (management grip), adapting with market change.

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Evaluating Channel Members

Assessing channel members' performance and suitability for a company.

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