Ch. 10 | Marketing Channels and Supply Chain

Question 1

what is a marketing channel?

Answer 1

Marketing Channel
the set of individuals or firms involved in the process of making a product/service available
- by use of intermediaries

Question 2

what are the 5 different kinds of intermediaries?

Answer 2

• middleman
• wholesaler
• retailer
• distributor
• dealer

Question 3

what are the 3 types of marketing channel functions that are performed by intermediaries?

Answer 3

• transactional function
• logistical function
• facilitating function

Question 4

what is a transactional function and what are the associated activities related to it?

Answer 4

Transactional function
intermediaries perform a transactional function when they buy and sell goods.
- buying
- selling
- risk-taking (holding unsold inventory)

Question 5

What is a logistical function and what are the associated activities related to it?

Answer 5

Logistical function
involves the details of preparing and getting a product to the buyers.
- selection/gathering
- storing
- sorting
- transporting

Question 6

what is a facilitating function and what are the associated activities related to it?

Answer 6

Facilitating functions
intermediaries perform facilitating functions that help make a transaction easier for buyers.
- financing
- marketing information and research

Eg. company credit cards that allow you to buy now, pay later

Question 7

how is value created by the use of intermediaries?

Answer 7

intermediaries minimize the number of sales contacts necessary to reach the target market

Question 8

consumers benefit from intermediaries in the form of utilities.
what are the 5 forms?

Answer 8

• time
• place
• form
• information
• possession

Question 9

define what dual distribution is

Answer 9

Dual distribution
is when a firms has different buyers by using two or more different types of channels for the same product

Eg. GE sells its appliances directly to home and apartment builders but uses retails stores sell to sell to consumers

Question 10

What is a cross-channel shopper?

Answer 10

Cross-channel Shopper
researches online and purchases at a retail store
- they compare among different retailers
- they need more information
- ease of comparing options

Question 11

What is omni-channel retailing?

Answer 11

Omni-channel Retailing
seamless experience among all availbale shopping channels