Chapter 4.1: The Concept of Marketing Channel

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Marketing channels are sets of independent organizations participating in the process of making a product or service available for use or consumption.

A marketing channel is also known as a production channel.

The term 'middleman' includes facilitating agencies that perform or assist in marketing functions.

Producers mainly sell their goods directly to the final users without the involvement of intermediaries.

The path along which goods move from producers to ultimate consumers is known as a channel of distribution.

Middlemen may act in the capacity of an agent or broker, but they do not acquire title to the goods.

The term 'intermediaries' includes banks, railways, roadways, warehouses, insurance companies, advertising agencies, etc.

Wholesalers and retailers who buy, take title to, and resell merchandise are called brokers.

Transportation companies, independent warehouses, banks, and advertising agencies are considered intermediaries in the distribution process.

Producers delegate the selling job to intermediaries to gain more control over how and to whom products are sold.

The text states that many producers have the financial resources and expertise to sell directly on their own.

Middlemen perform the marketing function of implementing pricing policies that are acceptable to buyers and ensure effective distribution.

Middlemen provide feedback information, marketing intelligence, and sales forecasting services to their suppliers.

The role of middlemen in the distribution of goods does not include participating actively in the creation and establishment of a market for a new product.

The text mentions that Ford has almost 12,000 dealer outlets worldwide.

The William Wrigley Jr. Company finds it practical to establish small retail gum shops throughout the world.

What type of conflict occurs when there is conflict between different levels within the same marketing channel?

In the context of marketing channels, which term refers to the dominant and controlling members of the channel?

What is the main cause of channel conflict in marketing channels?

What is the primary goal of channel coordination in marketing channels?

When can vertical, horizontal, and multichannel conflict occur in a marketing channel?

What should marketers aim to achieve in order to resolve conflict situations in marketing channels?

What is one of the reasons for disputes among channel members mentioned in the text?

What factor influences the rate of channel conflict according to the text?

What is an example of horizontal channel conflict?

What practice may lead to competition and horizontal conflict among middlemen?

What is the main source of horizontal conflict among middlemen according to the text?

What does the text highlight as an inevitable feature of distribution channels?

What does greater market size relative to the optimum scale size lead to, according to the text?

What is an example of horizontal conflict mentioned in the text?

What is one of the factors influencing the rate of channel conflict according to the text?


Test your understanding of the concept of marketing channels and the role of intermediaries in making products or services available for use or consumption.

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