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MGT 103 FINAL EXAM REVIEW QUESTIONS AND ANSWERS (100% PASS)
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MGT 103 FINAL EXAM REVIEW QUESTIONS AND ANSWERS (100% PASS)
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©PREP4EXAMS@2024 [REAL EXAM DUMPS] Thursday, July 25, 2024 12:43 PMMGT 103 FINAL EXAM REVIEW QUESTIONS AND ANSWERS (100% PASS)
Marketing Channel of Distribution - ✔️✔️consists of individuals and firms involved in the process
of making a product or service available for consumption by consumers or industrial users.
Buying something from Amazon, 7 Eleven, Kohl's all examples of marketing channels
Types of Intermediaries - ✔️✔️middleman, agent or broker, wholesaler, retailer, distributor, dealer
Middleman - ✔️✔️any intermediary between the manufacturer and end-user markets
agent/broker - ✔️✔️has legal authority to act on behalf of the manufacturer
wholesaler - ✔️✔️sells to other intermediaries, usually retailers
retailer - ✔️✔️sells goods directly to the customer
Types of intermediary functions - ✔️✔️transactional, logistical, facilitating
transactional function - ✔️✔️Buying products for resale, selling by contacting potential clients and
promoting, risk taking in business inventory
logistical function - ✔️✔️assorting, storing products at locations, sorting large quantities into
desired amounts, transporting
Facilitating Function - ✔️✔️financing and extending credit to customers, grading and testing
products, marketing info and research that includes competitive trends
time utilty - ✔️✔️having products available when the customer wants them
Place Utility - ✔️✔️having a product available where customers can buy it and want to buy it
Form utility - ✔️✔️senhancing a product or service to make it more appealing to buyers
possession utility - ✔️✔️entails efforts by intermediaries to help buyers take possession of a
product or service
direct channel for consumers - ✔️✔️Channel A; represents direct channels where producers and
consumers deal directly with each other
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indirect channel for consumers - ✔️✔️intermediaries are inserted between the producer and
consumers and perform numerous channel functions. Channel B, C and D
direct channels for business - ✔️✔️Channel A; maintains own salesforce and performs all channel
functions
indirect channel for business - ✔️✔️Adds industrial distributor (Channel B), agent (Channel C), or
both (Channel D) which is most ineffective
digital marketing channels - ✔️✔️make products and services available for consumption by
consumers / organizational buyers. Combine electronic and traditional intermediaries to create
time, place, form, and possession utility for buyers.
direct to consumer marketing channels - ✔️✔️Allow consumers to buy products by interacting
with various prints or electronic media without face to face meeting with salesperson. Examples
are mail order, selling, direct mail sales, catalog, telemarketing.
multichannel marketing - ✔️✔️also called omnichannel marketing, is the blending of different
communication and delivery channels that are mutually reinforcing in attracting, retaining, and
building relationships with consumers who shop and buy in traditional intermediaries and online.
BOPUS - ✔️✔️customers buy online and pick up in store
BORIS - ✔️✔️customers buy online and return purchases in a store
dual distribution - ✔️✔️arrangement whereby a firm reaches different buyers by employing two or
more different types of channels for the same basic product
Strategic Channel Alliances - ✔️✔️innovation in marketing channels, one firm's marketing
channel is used to sell another firm's products
Vertical Marketing systems - ✔️✔️professionally managed and centrally coordinated marketing
channels designed to achieve channel economies and maximum marketing impact
What are three types of vertical marketing? - ✔️✔️corporate, contractual, and administered
Corporate systems - ✔️✔️the combination of successive stages of production and distribution
under a single ownership
forward integration - ✔️✔️owning intermediary at next level down in channel
backward integration - ✔️✔️a retailer might own a manufacturing operation
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Contractual systems - ✔️✔️independent production and distribution firms integrate their efforts on
a contractual basis to obtain greater functional economies and marketing impact than they could
achieve alone
Wholesaler-sponsored voluntary chains - ✔️✔️involve a wholesaler that develops a contractual
relationship with small, independent retailers to standardize and coordinate buying practices,
merchandising programs, and inventory management efforts
Retailer-sponsored cooperatives - ✔️✔️exist when small, independent retailers form an
organization that operates a wholesale facility cooperatively
Franchising - ✔️✔️A contractual agreement between a franchisor (parent) and a franchisee that
allows the franchisee to operate a business using a name and format developed and supported by
the franchisor.
Manufacturer-sponsored retail franchise systems - ✔️✔️prominent in the automobile industry,
where a manufacturer such as Ford licenses dealers to sell its cars subject to various sales and
service conditions
Manufacturer-sponsored wholesale franchise systems - ✔️✔️exist in the soft-drink industry. For
example, Pepsi-Cola licenses wholesalers (bottlers) that purchase concentrate from Pepsi-Cola
and then carbonate, bottle, promote, and distribute its products to retailers and restaurants.
Service-sponsored retail franchise systems - ✔️✔️used by firms that have designed a unique
approach for performing a service and wish to profit by selling the franchise to others
Service-sponsored franchise systems - ✔️✔️when franchisors license individuals or firms to
dispense a service under a trade name and according to specific guidelines
Administered Systems - ✔️✔️achieve coordination at successive stages of production and
distribution by the size and influence of one channel member rather than through ownership
What factors affect channel choice and management? - ✔️✔️target market coverage, buyer
requirements, and profitability
density - ✔️✔️number of stores in geographic area. Three degrees exist: intensive, exclusive and
selective distribution
intensive distribution - ✔️✔️firm tries to place products and services in as many outlets as
possible. done for convenience products usually
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exclusive distribution - ✔️✔️the extreme opposite of intensive distribution because only one
retailer in a specified geographical area carries the firm's products. done for speciality products
selective distribution - ✔️✔️lies between the two extremes, the firm selects a few retailers in the
area to carry its products
Buyer requirements - ✔️✔️information, convenience, variety, pre or post sale services
Profitability - ✔️✔️better determined by margined revenue which is revenue minus cost
channel cost - ✔️✔️is a critical dimension of profitability, which include costs such as advertising,
selling, distribution and selling expenses
channel conflict - ✔️✔️arises when one channel member believes another is engaged in behavior
that prevents it from achieving goals
vertical conflict - ✔️✔️conflict between different levels of the same channel. Between
manufacturer and wholesaler. Has three conflicts: disintermediation, disagreements over profit
margins, and manufacturers believing wholesalers are not giving product adequate attention
disintermediation - ✔️✔️a channel member bypasses another member and sells or buys products
direct
horizontal conflict - ✔️✔️between intermediaries at the same level in a marketing channel.
Happens when manufacturer increases its distribution coverage in area and dual distribution
causes conflict of multiple retailers selling same brands
channel captain - ✔️✔️a channel member that coordinates, directs, and supports other channel
members. Ability to influence which takes four forms: expertise, identification, reward, and
legitimate right
Legal Considerations - ✔️✔️Clayton act: vertical integration, exclusive dealing, dual distribution,
tying arrangements and refusal to deal & Sherman Act: dual distribution and resale restrictions
Exclusive dealing - ✔️✔️exists when a supplier requires channel members to sell only its products
or restricts distributors from selling directly competitive products
tying arrangements - ✔️✔️when a supplier requires a distributor purchasing some products to buy
others from the supplier
full line forcing - ✔️✔️special kind of tying arrangement. involves a supplier requiring that a
channel member carry its full line of products in order to sell a specific item in the supplier's line
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