Introduction To Marketing: Chapter 12

1. What is a Marketing Channel?

A platform for social media influencers to share their content.

The physical locations where products are stored in a warehouse.

Set of interdependent organizations involve in the process of making a product or service available for use or consumption by the consumer or business user.

A marketing campaign aimed at increasing brand awareness through television commercials.

A marketing channel refers to the network of organizations involved in the process of distributing a product or service to the end consumer. It includes activities such as product promotion, pricing, and distribution.

Explanation

A marketing channel refers to the network of organizations involved in the process of distributing a product or service to the end consumer. It includes activities such as product promotion, pricing, and distribution.

2. What is the difference between a company that has a channel vs. a company that does not have one?

If you do not have a distributor, a channel, you have to directly sell to customers. Each company would have to contact different groups of clients themselves, however, when there is a channel in the middle, all they have to deal with is selling their products to the distributor and the channel can organize/manage everything (they have contact and records regarding their customers and the product)

A channel refers to physical stores where products are sold, not distribution networks.

Having a channel allows a company to avoid interacting with customers directly.

Companies with channels generally have lower profits compared to those without channels.

Having a channel in the distribution process streamlines the sales process for the company, allowing them to focus on creating products while the channel handles customer interactions and distribution logistics.

Explanation

Having a channel in the distribution process streamlines the sales process for the company, allowing them to focus on creating products while the channel handles customer interactions and distribution logistics.

3. What are the three channels for consumer marketing? / define them.

Channel 1: Single channel, two members are involved, there is a producer that directly sells to the consumer (example: online shopping) -> there are no intermediaries here
Channel 2: There is one element in the middle, a retailer. Here the producer doesn't sell directly to the consumer, they sell to the retailer and the retailer takes care of selling to the consumer. (This is good for companies who have numerous customers)
Channel 3: In additional to the retailer, you may the wholesaler. There may be numerous retailers. So producers sell to wholesalers and retailers buy products from wholesalers.

Channel 1: In this channel, consumers directly buy products from the wholesaler without any involvement of the producer.

Channel 3: In this channel, the producer sells products directly to the consumer through online marketplaces without the need for any retailers.

Channel 2: In this channel, there are multiple layers of retailers involved between the producer and the consumer.

4. What are some advantages and disadvantages when you have a channel?

Advantage: you do not have to deal with each individual customer
Disadvantage: you loose control and there will be complexity

Advantage: it is easy to manage the channel. Disadvantage: customers may have a negative experience due to lack of personal interaction.

Advantage: channels allow for personalized experiences. Disadvantage: channels are not cost-effective.

Advantage: you have complete control over the channel. Disadvantage: you have limited reach.

The correct answer highlights the trade-off between convenience and loss of control and complexity when utilizing a channel. The incorrect answers present misconceptions about the advantages and disadvantages of having a channel.

Explanation

The correct answer highlights the trade-off between convenience and loss of control and complexity when utilizing a channel. The incorrect answers present misconceptions about the advantages and disadvantages of having a channel.

5. How much control do you have for each channel?

Channel 1: partial control Channel 2: full control Channel 3: no control

Channel 1: full control Channel 2: no control Channel 3: partial control

Channel 1: no control Channel 2: partial control Channel 3: full control

Channel 1: full controlChannel 2&3: no control(example: you sell your tickets to a travel agency, they promote other tickets)

The correct answer specifies that Channel 1 provides full control while Channel 2 and 3 offer no control, meaning that once tickets are sold to a travel agency, they have the freedom to promote other tickets.

Explanation

The correct answer specifies that Channel 1 provides full control while Channel 2 and 3 offer no control, meaning that once tickets are sold to a travel agency, they have the freedom to promote other tickets.

6. What is Conventional Channel?

Producer-->Wholesaler-->Retailer-->Consumer
-Each channel is seeking to maximize its own profit and often results in poor performance because price is valued higher than it should be and customers are not happy (and decide to go buy products from competitors instead)

Producer-->Consumer - This eliminates the involvement of intermediaries in the distribution process.

Producer-->Retailer-->Consumer - This skips the wholesaler from the distribution process.

Producer-->Retailer-->Wholesaler-->Consumer - This order disrupts the traditional flow and may lead to inefficiencies in distribution.

In a Conventional Channel, the flow from producer to retailer to consumer is standard practice. Any alterations to this flow can impact the distribution efficiency and customer satisfaction.

Explanation

In a Conventional Channel, the flow from producer to retailer to consumer is standard practice. Any alterations to this flow can impact the distribution efficiency and customer satisfaction.

7. What is a Vertical Marketing Channel?

A vertical marketing channel is when each party sets prices independently without coordinating with others for mutual benefit.

A vertical marketing channel is when only the retailer and consumer are involved in setting prices and profits.

Producer+wholesaler+retailer --> consumer-- all three get together, as a unified system, and discuss a reasonable profit that suites each and everyone of them --> try to come with a price that they all will benefit from as well as their customers

A vertical marketing channel is when the producer dictates prices to the wholesaler and retailer without considering their input.

A vertical marketing channel involves collaboration and coordination between all parties in the channel to ensure mutual benefit and customer satisfaction.

Explanation

A vertical marketing channel involves collaboration and coordination between all parties in the channel to ensure mutual benefit and customer satisfaction.

8. What is a multichannel distribution system?

A multichannel distribution system only uses one way to reach consumers.

A multichannel distribution system restricts the producer to selling only through a single website.

A multichannel distribution system is limited to selling through physical stores only.

The producer could reach the consumers in two different methods: 1) Single Channel Method- the producer uses only one way to reach the consumers: sell directly --> Internet, telephone, cataloguese.g. selling tickets only through one website - you have full control / understand what your customers want2) Multi-Channel Method - the producer uses several ways to reach out to their consumers, they use multiple methods to sell to the consumer- if you sell through different ways, you will get different groups of consumers - the more flexibility you have, the more variations you will get

Multichannel distribution systems involve using multiple methods to reach consumers, allowing for flexibility and reaching different consumer groups.

Explanation

Multichannel distribution systems involve using multiple methods to reach consumers, allowing for flexibility and reaching different consumer groups.

9. What is an example of a channel conflict?

You offer discounts to customers who purchase directly from your website rather than through third-party sellers.

You are selling yourtickets through travel agencies, suddenly you decide to sell tickets on theInternet as well. Travel agencies are not happy with this and tell your companythat if they choose to do this, then they could sell their tickets online however,they would want nothing to do with them if this is done.

You start a loyalty program for customers who book tickets exclusively through the travel agencies you work with.

You collaborate with different travel agencies to increase ticket sales and expand your market reach.

Channel conflict occurs when different distribution channels for a product or service clash. In the correct answer, the conflict arises from selling tickets through both travel agencies and on the internet, causing dissatisfaction among the travel agencies. The incorrect answers do not depict channel conflict as they describe scenarios that promote collaboration or offer incentives without conflicting interests between distribution channels.

Explanation

Channel conflict occurs when different distribution channels for a product or service clash. In the correct answer, the conflict arises from selling tickets through both travel agencies and on the internet, causing dissatisfaction among the travel agencies. The incorrect answers do not depict channel conflict as they describe scenarios that promote collaboration or offer incentives without conflicting interests between distribution channels.

10. What are the four steps for channel design decisions?

Step 1: Identifying Major Alternatives, Step 2: Setting Channel Objectives, Step 3: Analyzing Consumer Needs, Step 4: Evaluating Major Alternatives

Step 1: Analyzing Consumer NeedsStep 2: Setting Channel ObjectivesStep 3: Identifying Major AlternativesStep 4: Evaluating Major Alternatives

Step 1: Setting Channel Objectives, Step 2: Analyzing Consumer Needs, Step 3: Evaluating Major Alternatives, Step 4: Identifying Major Alternatives

Step 1: Evaluating Major Alternatives, Step 2: Analyzing Consumer Needs, Step 3: Setting Channel Objectives, Step 4: Identifying Major Alternatives

The correct steps for channel design decisions involve analyzing consumer needs, setting channel objectives, identifying major alternatives, and evaluating those alternatives.

Explanation

The correct steps for channel design decisions involve analyzing consumer needs, setting channel objectives, identifying major alternatives, and evaluating those alternatives.

11. Define: Step 1: Analyzing Consumer Needs.

Ignoring consumer needs and focusing solely on product features

Assuming all consumers have the same needs and preferences

- Cost and feasibility of meeting needs must be considered - Youmust analyze your consumer needs --> depending on wherepeople buy, they might have different needs (e.g. people who go online to dotheir banking online want to save time. However, people who go to bankbranches, go there to get personalize services, feel safer etc.)

Investigating competitor products and services to replicate them

Analyzing consumer needs involves understanding the cost, feasibility, and unique preferences of different consumer segments in order to tailor products or services accordingly.

Explanation

Analyzing consumer needs involves understanding the cost, feasibility, and unique preferences of different consumer segments in order to tailor products or services accordingly.

12. Define: Step 4: Evaluating Major Alternatives.

- Economic Criteria- Control Issues - Adaptive Criteria e.g.manufacturer of food --> you want to evaluatemajor alternatives (which one is easier to control etc.)

- Ranking insignificant options

- Randomly selecting alternatives

- Ignoring all alternatives

In Step 4 of evaluating major alternatives, the main focus is on evaluating major alternatives based on economic criteria, control issues, and adaptive criteria. Ranking insignificant options, ignoring all alternatives or randomly selecting alternatives would not be part of this step.

Explanation

In Step 4 of evaluating major alternatives, the main focus is on evaluating major alternatives based on economic criteria, control issues, and adaptive criteria. Ranking insignificant options, ignoring all alternatives or randomly selecting alternatives would not be part of this step.

13. What is involved in Channel Management Decision?

- Selecting channel members- Managing and motivating channel members- Evaluating channel members

Developing new product features

Advertising on social media

Setting pricing strategy

Channel Management Decision involves activities related to choosing, managing, and assessing channel members in order to effectively distribute products or services.

Explanation

Channel Management Decision involves activities related to choosing, managing, and assessing channel members in order to effectively distribute products or services.

14. What is partner relationship management (PRM) used for in the context of managing and motivating channel members?

PRM -> partner relationship management for long-term partnership
Software available to coordinate memebrs

PRM is a method of micromanaging channel members.

PRM is a term used in financial management.

PRM stands for Personal Relationship Management.

Partner relationship management (PRM) software is specifically designed to help companies manage and nurture their strategic channel partnerships for long-term success.

Explanation

Partner relationship management (PRM) software is specifically designed to help companies manage and nurture their strategic channel partnerships for long-term success.

15. How do you evaluate channel members?

Check channel performance of:- sales- inventory- customer delivery- promotions and training - customer service

Look at social media followers

Focus on employee satisfaction

Ask for personal references

When evaluating channel members, it's essential to assess various aspects of their performance related to sales, inventory, customer delivery, promotions and training, and customer service. Looking at social media followers, asking for personal references, or focusing on employee satisfaction alone may not provide a comprehensive evaluation of channel members.

Explanation

When evaluating channel members, it's essential to assess various aspects of their performance related to sales, inventory, customer delivery, promotions and training, and customer service. Looking at social media followers, asking for personal references, or focusing on employee satisfaction alone may not provide a comprehensive evaluation of channel members.

16. What are the marketing logistics?

Sales Logistics: Flow of goods and information from the company to customers.

InboundLogistics: about flow of goods, materials and information from supplies tothe company --> between company and suppliers (a lot ofproblems with inbound logistics = problem with suppliers)OutboundLogistics: Flow of goods, materials and information from company to retailers(a lot of problems with outbound logistics = problem with retailers)ReverseLogistics: Flow of products, information from later steps to earlier steps ( e.g. system to get unsold products backto company)

Production Logistics: Flow of goods within the production process.

Distribution Logistics: Flow of goods and materials from warehouses to retailers.

Marketing logistics involves the flow of goods, materials, and information at different stages of the marketing process. Inbound logistics deal with the supply chain, outbound logistics focus on distribution to retailers, and reverse logistics handle the return and reuse of products.

Explanation

Marketing logistics involves the flow of goods, materials, and information at different stages of the marketing process. Inbound logistics deal with the supply chain, outbound logistics focus on distribution to retailers, and reverse logistics handle the return and reuse of products.

17. Draw a diagram illustrating the concept of supply chain management.

See Picture

Create a supply chain management software program.

Perform a SWOT analysis on a supply chain system.

Write an essay explaining supply chain management principles.

The question asks for a visual representation of supply chain management, not written explanations or software development.

Explanation

The question asks for a visual representation of supply chain management, not written explanations or software development.