Question 1

How many channel levels are involved in the distribution of products in the meatpacking industry?

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Question 2

As the channel manager at a consumer products firm, you develop a channel incentive program in which channel members receive an extra 2 percent discount on all purchases when the channel members agree to pass half of this discount along to their customers in terms of a price decline. This is an example of what type of channel power.

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Question 3

When you purchase a Subway franchise, the corporate office delivers to you an entire system designed to bring the services efficiently to the consumer. This is an example of what type of contractual VMS?

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Question 4

A leading manufacturer of watches maintains a set of very exclusive networks of retailers (exclusive distribution) that are authorized to sell its watches. This exclusivity ensures that the company can control the service level, distribution, and outputs offered by the retail stores doing business with them. Recently, however, there has been pressure on the company (by Wall Street investors) to expand its products to more and more retailers (intensive distribution) in order to increase sales. What are some of the dangers that the company might encounter when moving from one form of distribution to another?

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Question 5

Explain the concept of a hybrid channel distribution system.

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Question 6

When surfing a particular manufacturer's Web site you are able to find out costs, colours, styles, sizes, and availability. When deciding to purchase the product, the Web site directs you to the manufacturer's retail store location closest to your home. In fact, there is no option for you to order your selection online the site continues to direct you to the nearest retail store location. You can only order the product once you have visited the retailer's Web site. This is an example of one type of strategy for a manufacturer using both the Web and in continuing to support its channel partners. What are the other two strategies available to manufacturers, who want to use the power of the Internet but at the same time, continue to support its channels?

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Question 7

When we talk about manufacturers' redemption centres, community groups, trash-collection specialists, recycling centres, and central-processing warehouses, we are talking about what kind of distribution channels?

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Question 8

Marketers must be careful not to dilute their brands through inappropriate channels. How have Dior and Louis Vuitton, the manufacturers of high-end leather goods, managed its channels to maintain its luxury status.

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Question 9

When a marketer such as Danier Leather delivers the products to the customer, exchanges title of the goods, or even conducts a sales promotion, they are conducting a forward flow of activity through the channel. Explain the elements for a backward flow from customers to Danier.

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Question 10

The ability of a shopper of laundry detergents to visit a grocery retailer and see a wide variety of brands, sizes, and units for purchase is an example of what elements of the channel service output?

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Question 11

As the "channel manager" for your firm, you have been asked by senior managers to identify new distribution channels for the launch of a new product. Your presentation describes a channel alternative as having three sets of elements. What are the three elements that would be contained in your presentation?

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Question 12

Why is a marketing channel system so important to a manufacturer such as General Motors?

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Question 13

A small Canadian business has developed a new cleaning product. Explain what choosing the appropriate "marketing channels" will involve.

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Question 14

What are the benefits of exclusive arrangements?

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Question 15

A winery in British Columbia is developing a channel strategy to make their wines available across the country. What elements in the "trade-relations mix" between producers and channel members should they consider?

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Question 16

"Stand alone" fax machines are now entering the later stages of their life cycle. As a result, the number of channels used by your firm, and the number of channel intermediaries' needs to be re-evaluated. What other considerations would require a re-evaluation of channel arrangements?

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Question 17

MEC enables its customers to do transactions either by phone, mail-order catalogue, Internet, or in person. This is an example of a company using what type of marketing channels?

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Question 18

Explain why the marketing channel system is so important to a firm.

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Question 19

In setting up its distribution channel, Bowflex Fitness Equipment must account for the physical transfer of the product from its location to the consumer and must receive payment for the goods sold. These are part of the channel functions. All channel functions must be performed and have three things in common. Please list the three things that all functions have in common.

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Question 20

You own a franchise (one location) of a national chain of quick luncheon meals. The corporate office (the franchisor) is conducting a nation-wide marketing campaign introducing a $5.00 value meal option. This $5.00 value meal option severely cuts into you operating margins. Numerous complaints to the corporate office have resulted in the corporate office taking the position that "the franchisees need to be competitive and this $5.00 meal is competitive." You disagree noting that even with an increase in store traffic, the reduction in revenue and margin produced by this value menu, will result in a net loss for your firm. What cause of channel conflict is at play here?

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Quiz 15: Designing and Managing Integrated Marketing Channels