UF MAR3023: Principles of Marketing Exam 3 Questions And All Correct Answers.
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UF MAR3023
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UF MAR3023
Marketing Channel - Answer Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Intermediaries: Transactional Function - Answer When they buy and sell products or services. Shares risk with the produc...
UF MAR3023: Principles of Marketing
Exam 3 Questions And All Correct
Answers.
Marketing Channel - Answer Individuals and firms involved in the process of making a product or
service available for use or consumption by consumers or industrial users
Intermediaries: Transactional Function - Answer When they buy and sell products or services. Shares
risk with the producer when stocking merchandise in anticipation of sales
Intermediaries: Logistical Function - Answer Preparing and getting a product to buyers. Gathering,
sorting, and dispersing products are some of the functions of the intermediary
Intermediaries: Facilitating Function - Answer Make a transaction easier for the buyer.
Time utility - Answer Having a product or service when you want it
Place utilitiy - Answer Having a product or service available where consumers want it
Form utilitiy - Answer Enhancing a product or service to make it more appealing to the buyer
Possession utility - Answer Efforts by intermediaries to help buyers take possession of a product or
service
Direct Channel - Answer Producer and ultimate consumer deal directly with each other. No
intermediaries in this type of channel, the producer performs all channel functions
Indirect Channel - Answer Intermediaries are inserted between the producer and consumer and
perform numerous channel functions
,Digital marketing channels - Answer Make products and services available for consumption or use by
consumers or organizational buyers. Combine electronic and traditional intermediaries to create time,
place, form, and possession utility for buyers
Electronic intermediaries - Answer Can and do perform transactional and facilitating functions
effectively and at a relatively lower cost than traditional intermediaries because of efficiencies made
possible by digital technology. Incapable of performing elements of the logistical function
Direct to consumer marketing channels (D2C) - Answer Allow consumers to buy products by interacting
with various print or electronic media without a face-to-face meeting with a salesperson. Includes mail-
order selling, direct-mail sales, catalog sales, telemarketing, websites, and televised home shopping
Multichannel marketing - Answer 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
Dual distribution - Answer An arrangement whereby a firm reaches different buyers by employing two
or more different types of channels for the same basic product
Strategic channel alliances - Answer One firms marketing channel is used to sell another firms product.
Popular in the global market (creation of marketing channel relationships are expensive and time-
consuming
Vertical marketing systems - Answer Professionally managed and centrally coordinated marketing
channels designed to achieve channel economies and maximum marketing impact
VMS: Corporate systems - Answer Combination of successive stages of production and distribution
under a single ownership
Forward integration: producer owns the intermediary at the next level down
Backward integration: Retailer owns a manufacturing operation
,VMS: Contractual systems - Answer 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: 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: small, independent retailers form an organization that operates a
wholesale facility cooperatively
Franchising: contractual arrangement between a parent company (franchisor) and an individual or firm
(franchise) that allows the franchisee to operate a certain type of business under an established name
and according to specific rules
Manufacturer-sponsored retail franchise systems - Answer Prominent in automobile industry.
Manufacturer licenses dealer to sell its cars subject to various sales and service conditions
manufacturer-sponsored wholesale franchise systems - Answer Exist in the soft drink industry.
Company or firm licensees wholesalers that purchase concentrate from company/firm and then
carbonate, bottle, promote, and distribute its products to retailers and restaurants
Service-sponsored retail franchise systems - Answer 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 - Answer Exist when franchisors license individuals or firms to
dispense a service under a trade name and according to specific guidelines. DO not have a unique
approach
VMS: Administered systems - Answer achieve coordination at successive stages of production and
distribution by the size and influence of one channel member rather than through ownership
Intensive distribution - Answer Firm tries to place its products and services in as many outlets as
possible. Usually chosen for convenience products or services
, Exclusive distribution - Answer Extreme opposite of intensive distribution because only one retailer in a
specific geographic area carries the firm's products Usually chosen for specialty products or services
- limits head to head competition for an identical products
- Provides a point of difference for a retailer or distributor
Selective distribution - Answer Lies between the two extremes of intensive and exclusive and means
that a firm selects a few retailers in a specific geographic area to carry its products
Buyer Requirements - Answer 1.) Information: important requirement when buyers have limited
knowledge or desire specific data about a product or service
2.) Convenience: proximity, time, hassle
3.) Variety: reflects buyers' interest in having numerous competing and complementary items from
which to choose
4.) Pre- or postsale services: provided by intermediaries and are important buying requirement for
products such as large householfd appliances that require delivery, installation, service, and credit
Considerations in choosing a channel - Answer 1.) Target market coverage (intensive, exclusing,
selective)
Profitability - Answer Determined by the margins earned (revenue minus cost) for each channel
member and for the channel as a whole. Channel cost is the critical dimension of profitability
(distribution, advertising, selling expenses)
Channel conflict - Answer Arises when one channel member believes another channel member is
engaged in behavior that prevents it from achieving its goal
Two types; vertical and horizontal
Vertical conflict - Answer occurs between different levels in a marketing channel (ex. between a
manufacturer and a wholesaler/retailer)
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