Marketing Channels Chapter 1

A distinction is made between channel members and facilitating agencies because:
The channel management problems are often different for channel members versus facilitating agencies.
In the development of channel strategy, the channel manager is faced with:
An allocation decision
According to the view taken in the text, the marketing channel may be defined as
the external contactual organization that management operates to achieve its distribution objectives
Ideally, the channel manager would like to exercise __________ over which firms in the channel perform the distribution tasks.
Total control
A sustainable competitive advantage is one that
is difficult for competitors to match
When considering the flows in the marketing channel for lawn tractors, product flows __________ and negotiation flows __________.
Down the channel; both up and down
Which of the following statements is false?
The flexibility to respond to consumers does not appear to be relevant to channel design.
For accounting firms and other producers of services:
Marketing channels often include agents or brokers.
When Wal-Mart is performing negotiatory functions, it is involved in
Transferring title, selling, and buying
Which of the following is a true statement about Internet-based channels?
Internet-based channels have become a mainstream channel in the channel mixes of many firms.
Relating to the term, channel manager, which of the following statements is false?
Most firms and organizations have a single designated position called channel manager.
Marketing channel management should be considered:
A major strategic area of marketing management.
According to the text, the most promising avenue for gaining a sustainable competitive advantage today is through an emphasis on:
Channel strategy.
The text argues that the role of marketing channels in marketing management is:
Of strategic importance in many cases.
In general, basic decisions in channel strategy usually __________ operating decisions in logistics management.
Management of the marketing channel frequently involves all of the following except:
Intraorganizational management.
A multi-channel strategy means:
A company reaches its customers through more than one channel.
Because the Sales Coordinator at Borden, Inc. makes channel decisions, he/she can be considered:
A channel manager.
Channel management is concerned mainly with
The entire process of setting up and operating the contactual organization.
In developing and managing the ancillary structure versus the channel structure, the problems faced by the channel manager are:
Usually less difficult and complex.
The concept of specialization and division of labor:
Is of equal importance in production and distribution.
According to the text, the technology that is likely to have the greatest impact on marketing channels is:
The Internet.
The channel manager is:
Anyone in the firm who makes marketing channel decisions.
Consumers often view the marketing channel as simply:
A lot of middlemen standing between them and the producer of the product
The Internet and World Wide Web has connected millions of people and institutions and
Is an important determinant in the use of intermediaries in marketing channels.
Channel management should be viewed as:
One of the major strategic areas of marketing management.
Which of the following is a true statement?
E-commerce technology that includes online sales is a common component in today’s multi-channel structure.
The Coors Company has decided to focus on channel strategy as the key factor in achieving sustainable competitive advantage because:
The relationship between a manufacturer and its channel members is not copied easily by competitors.
In contrast to the development of channel structure, when the channel manager develops ancillary structure, he or she is dealing with facilitating agencies that are:
Outside of the channel decision-making process.
The channel manager should allocate the distribution task to:
Those firms that can perform them most efficiently.
Ten manufacturers of wallpaper all sell through one wholesaler to five retailers. The number of contacts needed for all of the manufacturers to contact all of the retailers is:
The only major difference between the specialization and division of labor principle as applied to a production versus a distribution situation is:
Production tasks are often allocated intra-organizationally, while distribution tasks are frequently allocated inter-organizationally.
When a firm finally invents the Star-Trek® Transporter, its marketing channel will come into existence only after:
The negotiatory functions have taken place

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