question

A pull strategy utilizes customers to convince businesses to sell a product

answer

TRUE

question

Consumers are informed via advertising and other promotions that a product is available for sale in a push strategy.

answer

TRUE

question

A product's supply chain includes transportation companies such as railroads.

answer

TRUE

question

The lines between retailers, wholesalers, and producers are very easy to distinguish.

answer

FALSE

question

Wholesalers resell goods to other companies without transforming the goods.

answer

TRUE

question

The Internet has fueled a certain amount of disintermediation.

answer

TRUE

question

The Internet is the best channel for every product

answer

FALSE

question

A company's prime consideration while selecting channels is how its customers want to buy products.

answer

TRUE

question

The Internet is hindering companies' ability to develop customer relationships.

answer

FALSE

question

Cutting middlemen out of the channel is known as:

answer

Disintermediation

question

All of the people and organizations that buy, resell, and promote a product " downstream" as it makes it to the end user is referred to as the _____.

answer

Distribution channel

question

_____ are characterized by selling products at a discount to people who pay an annual membership fee to join them.

answer

WAREHOUSE CLUBS

question

Frank needs to buy groceries, get a haircut, and stop for lunch. He could accomplish all these things under the same roof if he were to visit a(n) _____.

answer

SUPERSTORE

question

Acquiring part or all of a foreign company is a common strategy for companies known as _____.

answer

direct foreign investment

question

A(n) _____ is formed when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.

answer

JOINT VENTURE

question

Which of the following is the least risky global entry strategy?

answer

EXPORTING

question

A strategy utilized by the manufacturer of a good that convinces the wholesaler, distributor, or retailer to sell its products is known as a(n):

answer

Push strategy

question

_____ is a strategy of selling a product in as many outlets as possible.

answer

Intensive Distribution

question

_____ involves selling products through one or very few outlets.

answer

EXCLUSIVE DISTRIBUTION

question

_____ is the ability to influence a channel partner's goals and efforts.

answer

CHANNEL POWER

question

Channel conflicts occur because:

answer

channel members have their own goals.

question

The firms that a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its _____.

answer

CHANNEL MEMBERS

question

A company may partner with intermediaries because:

answer

the producer needs shipping and handling capabilities

question

Organizations that are involved in the process of producing, promoting, and delivering company products to its user but are not active participants in selling of the products are referred to as _____.

answer

SUPPLY CHAINS

question

Cash-and-carry wholesalers are an example of _____.

answer

limited-service wholesalers

question

_____ sell specialty products that they display on their own racks in stores.

answer

RACK JOBBERS

question

Mary ran into a store dedicated to the newest cat foods offered by her favorite pet food provider. She had so much fun interacting with the free samples and toys, she decided to bring her cat Fluffy to the store the next week, but it was no longer there. Mary most likely found a _____.

answer

POP-UP STORE

question

_____ are characterized as having a wide variety of household and personal types of merchandise such as clothing and jewelry.

answer

DEPARTMENT STORE

question

_____ are intermediary firms that sell products that businesses or government departments and agencies use but don't resell.

answer

Industrial Distributors

question

A _____ focuses on communicating the product's benefits to the consumer so as to create demand that retailers and distributors must meet.

answer

Pull strategy

question

Alex is providing special incentives to the employees at a gourmet food shop in hopes that they recommend his company's cheese to customers. Alex is utilizing a(n) _____.

answer

Pushing strategy

question

Often, two or more channel members will work together to promote a product to:

answer

retailers; purchasing agents; consumers.

question

One of the functions of _____ and _____ is to break large quantities of products down into smaller units.

answer

wholesalers; distributors

question

Products that are typically more likely to have a shorter marketing channel include

answer

perishable products

question

Intensive distribution is utilized for products that:

answer

consumers purchase on the spot without much shopping around.

question

Distributing a product exclusively to a limited number of organizations under strict terms can help

answer

prevent a company's brand from deteriorating.

question

A _____ is a market where unauthorized goods are sold without the knowledge of the producers.

answer

GRAY MARKET

question

_____ are products retailers produce themselves.

answer

STORE BRAND

question

Pat's dairy company has a conflict with Ron's grocery store. This is an example of

answer

Vertical conflict

question

A _____ occurs between organizations of the same type.

answer

Horizontal conflict

question

_____ is the practice of selling a large quantity of goods at a price too low to be economically justifiable in another country.

answer

DUMPING

question

An ethical and effective strategy utilized to gain channel member cooperation is:

answer

educating channel members' sales representatives about your product.

question

A(n) _____ involves channel members formally agreeing to closely cooperate with one another.

answer

vertical marketing system

question

A _____ involves two companies at the same channel level agreeing to cooperate with each other to sell their products.

answer

Horizontal marketing system

question

How companies sell is just as important as what they sell.

answer

TRUE

question

The simplest marketing channel consists of just three parties.

answer

FALSE

question

Companies strive to choose not only the best marketing channels, but the best channel partners.

answer

TRUE

question

Brokers take title to the products they sell.

answer

FALSE

question

A category killer is a type of specialty store that sells a high volume of a particular product.

answer

TRUE

question

Outlet stores are oversized department stores that carry a broad array of general merchandise as well as groceries.

answer

FALSE

question

Door-to-door sales and telemarketing are examples of direct marketing.

answer

TRUE

question

A direct channel consists of only a producer and a consumer.

answer

TRUE

question

The producer does not market directly to consumers when it is involved in an indirect channel.

answer

FALSE

question

A marketing channel offers little scope to companies to set itself apart from the crowd.

answer

FALSE

question

When creating a marketing channel, the key is to understand the different target markets for your product and designing the best channel to meet the needs of customers in each.

answer

TRUE

question

Disintermediation involves granting an independent operator the right to use your manufacturing processes, trade secrets, patents, and trademarks for a certain amount of time in exchange for a fee.

answer

FALSE

question

Different organizations in a marketing channel are responsible for different value-adding activities.

answer

TRUE

question

A push strategy primarily involves creating consumer demand.

answer

FALSE

question

The clout of the various organizations in its marketing channel can affect the contract terms.

answer

TRUE

question

The problem with a pull strategy is that it doesn't focus on the needs of the actual user of products.

answer

FALSE

question

Selecting the best marketing channel is critical because it can mean the success or failure of your product

answer

TRUE

question

Designer clothes and sunglasses are examples of products that typically utilize an intensive distribution strategy.

answer

FALSE

question

A channel member with strong channel powers is known as a channel captain.

answer

TRUE

question

Channel conflicts are atypical.

answer

FALSE

question

Contracts typically take care of all channel conflicts.

answer

FALSE

question

Stuffing the channel occurs when a company offers its channel partners deep discounts and unlimited returns to buy a lot of product.

answer

TRUE

question

Horizontal integration is an agreement formed by two or more firms to deliver their products via a channel.

answer

FALSE

MKT 201 CH. 8 Using Marketing Channels to Create Value for Customers – Flashcards

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