Untitled Flashcards Set

Well-Positioned Channel

Channel members support the strategy the manufacturer uses to gain differential advantage.

Post-Channel Design Strategic Question

How to use the marketing mix.

Channel Design View

One component in the firm’s attempt to gain differential advantage.

Competitive Advantage via Distribution

Long-lived.

Distribution Intensity & Channel Relationship

Looser.

Mass Market Distribution Strategy

Broad coverage of the market.

Manufacturer Payment for Shelf Space

Slotting allowance.

Corporate Level Planning Focus

Communicating corporate guidelines, business definition, and mission.

Channel Member Performance Evaluation

Provision for evaluation is made in the design and management of the channel.

Motivating Channel Members

Are very diverse in approach.

False Statement About Channel & Marketing Strategy

The marketing channel strategy focuses on product, price, and promotion.

Non-Essential Distribution Decision

Which individual should be chosen as channel manager.

Target Market Focused Marketing Strategy

Selective or exclusive distribution.

Basic Channel Design Variable

The target market.

Distribution Objectives Setting

With an eye toward objectives and policies of the firm.

Distant Manufacturers & Distribution Costs

The use of intermediaries will decrease distribution costs.

Heuristics in Channel Design

A rough reflection of fairly typical relationships among variables affecting channel structure.

Geographically Dispersed Markets

The more difficult and expensive is distribution.

Intermediary Variables

Size, expertise, and cost.

Effect of Shortening Channel

Increase the amount of capital necessary for distribution.

Problem with Financial Approach to Channel Design

Obtaining accurate estimates of future revenues and costs from alternative channel structures.

Weighted Factor Score Meaning

A quantitative representation of management’s judgment on the merits of a particular channel alternative.

Definition of Intensity

Refers to the number of intermediaries at each level of the marketing channel.

Markets Requiring More Intermediaries

Markets requiring many contacts.

Preferred for Short Channels

Firms that desire a high level of channel control.

Congruency of Distribution Objectives

The other elements of the marketing mix.

Channel Design Strategy Focus

As a means for gaining differential advantage.

Sources for Prospective Channel Members

All of the above.

Market Coverage Criterion

Market coverage.

Effect of Intensive Distribution on Selection

Less emphasis is placed on selection.

Manufacturer’s Commitment to Channel Members

Offering a management assistance program.

Best Way to Obtain Information on Potential Intermediaries

Conducting surveys.

Channel Member Selection & Structure

Is sometimes necessary even though the basic channel structure remains the same.

Trade Shows & Finding Channel Members

Are generally useful sources for finding new channel members.

Manufacturers with Most Channel Inquiries

Those who advertise most heavily.

Not a Good Inducement for Channel Members

Friendly relationships.

Channel Member Selection Criteria

A changing environment may require the firm to alter its emphasis.

Bucklin’s Distance & Lot Size Model

More expensive.

Efficient Congestion Concept

Increase the level of efficiency.

Most Complex Market Dimension

Market behavior.

Distribution Task Least Promoted by Congestion

Negotiations.

Shopping Goods Store Location Importance

Less important than what.

Channel Structure & Manufacturer Control

Decreases.

Definition of Market Size

The number of buyers in a given market.

Managing Seasonal Demand Variations

Include the willingness to buy off-season as a channel member selection criteria.

Four Subdimensions of Market Behavior

How, when, and where the market buys, and who does the buying.

Industrial Buying Decision Participants

Buying center.

Channel Manager’s Market Geography Responsibilities

Delineate the geographic location of target markets.

Main Focus of Channel Design Strategy

A competitive sustainable advantage.

Market Location Changes & Channel Manager Actions

Modifications in channel structure may be needed.