CH10

Question 1

marketing channel

Answer 1

consists of individuals and firms involved in the process of making a product or service available

Question 2

consumer benefits from intermediaries

Answer 2

1. time utility
2. place utility
3. form utility
4. info utility
5. possession utility

Question 3

direct channel

Answer 3

a producer and ultimate consumers dealing with each other directly

Question 4

indirect channel

Answer 4

have intermediaries such as agents that perform various functions between the producer and consumer, because they have expertise and provide more value

Question 5

dual distribution

Answer 5

an arrangement where a firm reaches different buyers by employing two or more different types of channels for the same basic product

Question 6

multi channel distribution

Answer 6

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining and building relationships with consumers

Question 7

vertical marketing system

Answer 7

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximize marketing impact

Question 8

corporate vertical marketing system

Answer 8

firm at one level of a channel owns the firm at the next level or owns the entire channel

Question 9

contractual vertical marketing system

Answer 9

independent production and distribution firms combine their efforts on a contractual basis to obtain greater economies and marketing impact

Question 10

administered vertical marketing systems

Answer 10

achieve coordination at successive stages of production and distribution by the size and influence of one channel member

Question 11

intensive distribution

Answer 11

when a firm places its products in as many outlets as possible, and is used for convenience goods or services

Question 12

selective distribution

Answer 12

when a firm selects a few retail outlets in a specific geographical area to carry its products and is the most common form of distribution density. It is usually used for shopping goods or services

Question 13

exclusive distribution

Answer 13

involves choosing only one retail outlet in a specified geographical area to carry the firm’s products

Question 14

channel conflict

Answer 14

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals

Question 15

vertical conflict

Answer 15

occurs between different levels in a marketing channel

Question 16

horizontal conflict

Answer 16

occurs between intermediaries at the same level in a marketing channel

Question 17

supply chain

Answer 17

a series of firms that perform activities required to create and deliver a good or service to consumers or industrial users

Question 18

key logistics functions in a supply chain

Answer 18

1. transportation
2. order processing
3. inventory management
4. warehousing