Marketing Systems and Distribution Channels Quiz
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Questions and Answers

What characterizes a Conventional Marketing System?

  • Formal cooperation through contracts
  • Collaboration among members at different levels
  • Independent operation of members prioritizing self-interest (correct)
  • Unified organization encompassing all distribution functions
  • Which type of Vertical Marketing System involves independent channel members collaborating due to a dominant member's influence?

  • Corporate VMS
  • Contractual VMS
  • Administered VMS (correct)
  • Horizontal Marketing System
  • What is a primary cause of channel conflict in marketing systems?

  • Effective communication among members
  • Consistent alignment of responsibilities
  • Different objectives and roles among firms (correct)
  • All members having the same objectives
  • What does the term 'Experiential Merchandising' refer to in retailing?

    <p>Actively engaging customers in the shopping experience (A)</p> Signup and view all the answers

    Which retail trend is characterized by providing a seamless shopping experience across different platforms?

    <p>Omni-channel Marketing (C)</p> Signup and view all the answers

    What is the primary focus of a conventional marketing system?

    <p>Members work independently with self-interest as the primary driver. (A)</p> Signup and view all the answers

    Which function helps to make the purchase process easier for both customers and manufacturers?

    <p>Credit offerings (A)</p> Signup and view all the answers

    What does a vertical marketing system emphasize?

    <p>Cooperation among members at different levels. (C)</p> Signup and view all the answers

    What does dual distribution refer to in marketing systems?

    <p>Implementing multiple channels simultaneously. (B)</p> Signup and view all the answers

    What is a channel of distribution primarily designed to do?

    <p>Facilitate the movement of finished goods to consumers (B)</p> Signup and view all the answers

    Which activity is NOT typically involved in a marketing system?

    <p>Public relations campaigns (C)</p> Signup and view all the answers

    Which of the following is an example of an indirect distribution channel?

    <p>A manufacturer using a wholesaler to sell to retailers (D)</p> Signup and view all the answers

    What function does 'breaking bulk' serve in a distribution channel?

    <p>Purchasing large quantities for smaller retail sales (C)</p> Signup and view all the answers

    What is meant by 'creating assortments' in distribution channels?

    <p>Offering a variety of products from a single seller (C)</p> Signup and view all the answers

    Which activity is NOT typically performed by intermediaries in a distribution channel?

    <p>Direct manufacturing of the products (D)</p> Signup and view all the answers

    What is the primary aim of Integrated Marketing Communication?

    <p>To deliver consistent messaging across platforms (A)</p> Signup and view all the answers

    Which of the following is NOT one of the roles performed by marketing communication?

    <p>It convinces consumers to avoid a specific brand. (B)</p> Signup and view all the answers

    In the integrated marketing communication process, what does 'noise' refer to?

    <p>Competing messages in the marketplace (B)</p> Signup and view all the answers

    What component of integrated marketing communication is responsible for delivering the message?

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

    Which of the following does NOT represent a medium used in integrated marketing communication?

    <p>Competing brands (C)</p> Signup and view all the answers

    What type of media emphasizes sharing, mentions, and reviews?

    <p>Earned Media (B)</p> Signup and view all the answers

    Which media type includes paid promotions like display ads and retargeting ads?

    <p>Paid Media (A)</p> Signup and view all the answers

    Which type of media is represented by web properties like blogs and mobile websites?

    <p>Owned Media (B)</p> Signup and view all the answers

    In the spectrum of marketer control over communication, which element is situated at the low end?

    <p>Word of Mouth (C)</p> Signup and view all the answers

    Which of the following strategies gives marketers the most control over communication?

    <p>Direct Marketing (A)</p> Signup and view all the answers

    What is the main objective of omni-channel marketing?

    <p>To blend digital and physical retail experiences (A)</p> Signup and view all the answers

    Which promotional method is characterized by a 'one to many' approach?

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

    Which type of media includes a company's website and social media channels?

    <p>Owned media (B)</p> Signup and view all the answers

    Which combination of promotion types involves a direct exchange of information between parties?

    <p>Personal Selling and Public Relations (A)</p> Signup and view all the answers

    On the control continuum, which promotional method is considered the least credible?

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

    What is the main goal of content marketing?

    <p>To attract and retain a clearly defined audience (C)</p> Signup and view all the answers

    Which of the following is NOT a type of content in content marketing?

    <p>Guided meditation sessions (A)</p> Signup and view all the answers

    What is a key aspect of the 'groundswell' phenomenon?

    <p>People using technology to share and obtain information from each other (A)</p> Signup and view all the answers

    Which three social media platforms are most used by adults in the US?

    <p>YouTube, Facebook, Instagram (A)</p> Signup and view all the answers

    What is one major consideration for brands when choosing social media platforms?

    <p>Available resources for content creation and management (D)</p> Signup and view all the answers

    What characterizes a Direct channel of distribution?

    <p>Moves goods directly from producer to consumer (D)</p> Signup and view all the answers

    Which type of Vertical Marketing System is characterized by one dominant firm controlling multiple layers?

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

    What function is primarily associated with wholesalers in a distribution channel?

    <p>Breaking bulk (B)</p> Signup and view all the answers

    What defines a Horizontal Marketing System?

    <p>Multiple independent firms partnering at the same level (D)</p> Signup and view all the answers

    Which statement best describes Indirect channels of distribution?

    <p>They incorporate multiple intermediaries in the process. (A)</p> Signup and view all the answers

    Flashcards

    Channel of Distribution

    A series of firms or individuals that moves finished goods from the manufacturer to the consumer.

    Direct Channel

    A distribution channel where the producer sells goods directly to the consumer without intermediaries.

    Indirect Channel

    A distribution channel that uses intermediaries like wholesalers and retailers to get goods to consumers.

    Breaking Bulk

    Intermediaries buy large quantities from producers and sell smaller quantities to consumers.

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    Creating Assortments

    Intermediaries offer a variety of products from different producers.

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    Conventional Marketing System

    A multi-level distribution channel where members act independently, focusing on their own self-interest while still maintaining fair dealings.

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    Vertical Marketing System

    A distribution channel with formal cooperation among multiple levels of members.

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    Dual Distribution

    Using multiple marketing channels at once; e.g., direct sales, distributors, retailers.

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    Marketing System Function: Risk Taking

    The risk a retailer takes when buying a product from a manufacturer, especially in the case of unwanted inventory.

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    Distribution Channel Efficiency

    Distribution channels make things easier by simplifying steps to get products to customers, reducing steps needed.

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    Vertical Marketing System (VMS)

    A formalized collaboration between members at different levels of a distribution channel, aiming for a shared goal.

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    Administered VMS

    A VMS where a dominant member exerts power to coordinate independent channel members.

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    Channel Conflict

    Disagreements arising between firms in a distribution channel due to incompatible goals, communication issues, or role conflicts.

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    Experiential Merchandising

    Retail strategies that focus on creating engaging experiences to draw customers into stores.

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    Integrated Marketing Communication (IMC)

    Planning, executing, and evaluating coordinated brand communication programs over time to deliver consistent messaging across platforms to target audiences.

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    What are the 4 Roles of Marketing Communication?

    1. Informs consumers about new goods and services. 2. Reminds consumers to continue using certain brands. 3. Persuades consumers to choose one brand over others. 4. Builds relationships with customers.
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    Source in IMC

    The company or individual that originates the marketing communication message.

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    Message in IMC

    The content of marketing communication, delivered through various channels like advertising, public relations, sales promotion, etc.

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    Receiver in IMC

    The target audience or consumer who receives the marketing communication message.

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    Earned Media

    Media coverage generated through positive customer engagement and interactions. It includes mentions, shares, reposts, and reviews.

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    Owned Media

    Channels directly controlled by a brand, such as websites, mobile apps, blogs, and social media profiles.

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    Paid Media

    Advertising strategies where you pay for placements and reach. Examples include per-click ads, display ads, retargeting ads, and social media ads.

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    Digital Marketing Trifecta

    The combination of earned, owned, and paid media strategies to create a holistic marketing approach.

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    Marketer Control Over Communication

    The extent to which marketers can influence the message and reach their target audience. High control is seen in advertising and promotions, while low control is seen in word-of-mouth.

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    Content Marketing

    A strategic approach to creating and sharing valuable, relevant, and consistent content to attract and keep a specific audience, aiming to drive profitable customer actions.

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    Groundswell

    A social trend where people rely on each other (friends, family) for news and information, instead of traditional sources like news channels or institutions.

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    Thought Leader

    An expert who is highly respected in their field, offering innovative ideas and turning them into reality.

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    What are the top 3 most used social media platforms by adults in the US?

    YouTube, Facebook, and Instagram are the most popular social media platforms among adults in the United States.

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    Considerations for choosing social media platforms

    Brands need to consider their resources (budget, staff, skills) when deciding which social media platforms to use.

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    Omni-Channel Marketing

    A marketing strategy that combines digital and physical retail experiences, creating a seamless and integrated shopping journey for customers.

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    Integrated Marketing Communications

    A strategy where all marketing efforts across different platforms (e.g., social media, advertising, PR) deliver a consistent message and brand image.

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    Control Continuum in Marketing

    A spectrum of marketing strategies ranked by their credibility, with advertising at the highest and word-of-mouth at the lowest.

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    What makes a Vertical Marketing System (VMS) 'administered'?

    An administered VMS has one dominant company controlling multiple layers of the channel, like a large retailer dictating how smaller suppliers operate.

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    What is a Horizontal Marketing System?

    Partnerships between firms at the same level of the distribution channel, like two retailers collaborating to reach more customers.

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    What is 'breaking bulk' in distribution?

    Intermediaries buy products in large quantities from producers and then sell them in smaller amounts to consumers.

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    What is the main difference between Business to Business (B2B) and Business to Consumer (B2C)?

    B2B focuses on businesses selling to other businesses, while B2C involves businesses selling directly to individual consumers.

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    Why do channels have conflicts?

    Channel conflicts occur when companies within the same distribution chain have conflicting goals, communication problems, or disputes over roles and responsibilities.

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