MKT Chapter Fourteen

What is certain to occur when a brand uses more than one channel, direct and indirect, or multiple indirect channels?

Conflict

A local business produces a single product that customers usually purchase as part of an assortment of other goods and products. What type of distribution strategy makes the most sense for this business?

A distributor that will place the product on a shelf or in a cart of other products

The spectrum of intensity distribution helps brands determine where they want to stand on the spectrum. Which of the following is not included on the spectrum?

Exhaustive

The first step in designing the ideal channel structure is:

Determining what role distribution should play in achieving brand objectives

Which of the following functions does a brand that uses direct channels own (have complete responsibility for)?

It owns all of these functions

You manufacture a product you hope to sell globally to any consumer through any retailer that is willing to carry your product. What intensity of distribution makes the most sense to protect your brand image?

Intensive

You manufacture a premium, luxury product. In order to protect your brand image, you want to distribute your product through multiple, but not all, possible channel partners in your market. What intensity of distribution makes the most sense to protect your brand image?

Selective

What type of distribution relies on third-party intermediaries?

Indirect

What are firms that buy from manufacturers and then sell to other retailers?

Wholesale distributor

A manufacturer that wants total control over its brand and every aspect of the customer experience will probably opt for which type of channel structure?

Direct

The accounting term for what manufacturers must know to determine what margin to let an indirect channel partner earn is:

Cost of goods sold

Distribution channels usually perform all but which of the following functions?

Manufacture goods to sell to customers

Indirect channels typically make money by:

Getting a percentage of what consumers pay to buy products

There are many ways channel partners can respond to channel conflict. Which response category reflects a desire to ignore the conflict and accept the relationship consequences?

Neglect

Distribution channels provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm wanting to expand in a foreign country in which it currently has no presence?

Access to new markets

There are many ways channel partners can respond to channel conflict. What kind of response is likely if the relationship history between partners has been good?

Loyalty

The Cost of Goods Sold for your product is $10. You desire to make a profit of $10 on each product sold, so you set the manufacturer's suggested retail price at $20. A retailer approaches you and proposes selling your product in its stores, and asks for a 50% margin on sales. How will this proposal affect your revenues?

We will break even

Which of these are examples of direct channels?

All of these are examples of direct channels

A reason why a brand would choose an intensive intensity of distribution is:

To have a presence everywhere it is possible

What type of indirect channel would create efficiency for residential builders, who must acquire a variety of building materials to construct a home?

A contractor's warehouse

The two major types of channels are:

Direct and indirect

Which of the following is an example of an indirect distribution channel?

All of these are indirect distribution channels

Brands whose distribution strategy involves blending direct and indirect channels is said to be practicing:

Dual distribution

A company manufactures its products in bulk and cannot handle small orders from individual consumers. What type of channel structure makes sense for this company?

Indorect

Distribution channels serve a number of purposes and provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm wanting to create efficiency or convenience for itself and its customers?

Efficiency

You manufacture a consumer product that you want in the widest possible distribution, anywhere and everywhere you can sell it. What intensity of distribution does this represent?

Intensive

Distribution channels provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm needed to set its products apart from a competing firm with similar products?

Differentiation

When a brand has a successful, mutually profitable relationship with a channel partner, what is likely to happen?

All of these things are likely to happen

There are many ways channel partners can respond to channel conflict. Which response category reflects a desire to have discussions about how to resolve it?

Voice

You manufacture a premium luxury item under a highly esteemed brand that you are very protective of, and your brand reputation has been growing stronger for decades. You have found only one distribution channel partner you feel upholds your carefully nurtured brand image. What intensity of distribution does this represent?

Exclusive

Which of the following are reasons why conflict might occur between channel members?

All of these are reasons why conflict occurs

All of the following are advantages of indirect distribution except for:

Higher margins

Which of the following products would benefit the most from the supply chain efficiencies of a distribution partner?

Bananas

Choosing the right indirect channel(s) requires balancing which of the following factors?

It requires balancing all of these factors

Which type of distribution is one that the manufacturer or supplier owns?

Direct

A manufacturer that wants a brand presence in every possible place it can would opt for what type of intensity of distribution?

Intensive

Your company sells a product for which the sales process is complex and the sales process itself delivers a lot of value in the form of consulting. What type of channel structure makes the most sense in this situation?

Direct

Which of the 4 Ps of the classic marketing mix do channels fall under?

Place

What is another business that is separate from the brand whose product it carries?

Third-party intermediary

Distribution channels serve a number of purposes and provide many benefits to the companies that use them. What is the benefit a channel might provide as a result of creating a mutually profitable, loyal relationship between a brand and its channel partner?

Creating barriers to competition

Which of the following is an example of a distribution channel a company might use to get its products to market?

All of these are channels

What kind of intensity of distribution makes sense for a manufacturer that wants to limit distribution through just a single, trusted channel partner?

Exclusive

Your company manufactures a product with a cost of goods sold of $5 and a retail price of $10. You're considering an indirect distribution partnership that would require you to pay a 50% margin to your distribution partner. What will be the financial result of this partnership?

You will break even on every sale

All of the following are types of intensity of distribution except:

Proactive