DM CHAPTER 2
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Questions and Answers

What type of marketing channel system involves the ownership of all levels of production or distribution by a single company?

  • Corporate vertical marketing system (correct)
  • Contractual VMS
  • Horizontal marketing system
  • Multi-channel marketing system
  • Which type of vertical marketing system involves one entity that is of a certain size and influences control over other channel partners?

  • Franchise organization
  • Horizontal marketing system
  • Corporate VMS
  • Administered vertical marketing system (correct)
  • What is the primary characteristic of a horizontal marketing system?

  • One entity dictating terms to retailers based on market share
  • Entities acting independently to run a profitable business
  • Ownership of all levels of production by a single company
  • Entities acting together as one team to provide service to end users (correct)
  • What type of arrangement exists between channel members in Contractual VMS?

    <p>Convenient arrangements to obtain economies of scale</p> Signup and view all the answers

    In which type of vertical marketing system do entities including the company act independently to run profitable businesses?

    <p>Corporate vertical marketing system</p> Signup and view all the answers

    Which marketing channel system involves entities acting as one team to provide service to end users?

    <p>Horizontal marketing system</p> Signup and view all the answers

    Which type of marketing system involves companies working together to provide benefits, even if they are unrelated?

    <p>Horizontal marketing systems</p> Signup and view all the answers

    What do companies adopting Multi-Channel marketing systems use to reach different customer segments?

    <p>Two or more marketing channels</p> Signup and view all the answers

    What type of system allows one entity to dictate terms like stock levels and shelf space allocation to retailers?

    <p>Administered vertical marketing system</p> Signup and view all the answers

    What is an example of a Franchise organization mentioned in the text?

    <p>Cafe-Coffee Day</p> Signup and view all the answers

    In which type of marketing system do supermarkets have ATMs of leading banks in their premises?

    <p>Horizontal marketing systems</p> Signup and view all the answers

    What are businesses involved in when they get together to obtain economies of scale in a Contractual VMS?

    <p>Obtaining economies of scale</p> Signup and view all the answers

    Which flow in marketing channels involves the movement of the physical product from the manufacturer to the ultimate consumer?

    <p>Product flow</p> Signup and view all the answers

    In marketing channels, which flow identifies the individuals who participate in the flow of information either up or down the channel?

    <p>Information flow</p> Signup and view all the answers

    Which flow in marketing channels deals with the movement of title through the channel?

    <p>Ownership flow</p> Signup and view all the answers

    Which type of marketing channel system depends on a variety of channel partners based on business needs and customer service levels?

    <p>Administered vertical marketing system</p> Signup and view all the answers

    In which marketing channel system do companies use a network of interdependent companies to help them sell more effectively?

    <p>Horizontal marketing systems</p> Signup and view all the answers

    Which marketing channel system involves channel members being bound by legal agreements spelling out their rights and obligations?

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

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