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Exam 10: Place and Development of Channel Systems

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Question 21

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In an indirect channel of distribution,both vertical conflict and horizontal conflict may arise.

A) True
B) False

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Question 22

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When Amazon.com collects products from many small producers,the company is involved in

A) assorting.
B) accumulating.
C) bulk-breaking.
D) quantitizing.
E) sorting.

F) C) and D)
G) B) and E)

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Question 23

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The CBS network offers consumers hundreds of hours of television viewing each month,but the typical consumer wants to watch only a few programs.What type of discrepancy does this create?

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Every morning,Sycamore Dairy picks up milk that farmers have "milked" that morning.The dairy processes the milk and separates the cream from the milk.Some of the cream is then made into butter and packaged in various sizes of containers.The milk and remaining cream are blended into various products; sealed in pint,quart,and half-gallon containers; and then delivered to supermarkets in the quantities and assortments ordered.Sycamore Dairy is engaged in which regrouping activity?

Exclusive distribution means selling through

The regrouping activity that involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called

Exporting is often the first step toward international marketing.

Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co.(WTB) makes tennis balls and sells them only in the United States.Raul Fernandez,the firm's marketing manager,is comparing his firm's distribution with two major competitors. 1) WTB sells its products through four regional distributors,who then sell to 22 sporting goods wholesalers.The wholesalers sell to a total of 7,000 retail outlets.From its website,WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls.WTB cooperates with members of its channel but maintains some control through its economic power and leadership.It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts. 2) American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country.The distributors then sell through six sporting goods wholesalers,and they,in turn,sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores) .ATB and its channel make little effort to work together.However,because of a relatively low level of competition between the distributors,the wholesalers,or the retail stores,each member of the channel gives the product special attention. 3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs.NTB actually owns the wholesale firms that handle its products.NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area. These three tennis ball producers all rely on retailers to reach consumers who want to buy only a few balls at a time.Apparently they all think that this is an efficient way to

Using the ________ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Strategy decisions concerning Place would NOT include

Selling through only one wholesaler or retailer in a particular geographic area is called

A channel system in which the various members informally agree to cooperate with each other is called a(n) ________ system.

Producers can positively manage channel conflict using all the following tactics EXCEPT

Intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

The main reason that vertical marketing systems are becoming more common is that

In general,marketers that seek greater control over their marketing mixes in the international environment will

When Fresh Produce Wholesaler Inc.buys fruits and vegetables from a variety of different farmers and then takes large bushels and breaks them into smaller package sizes,Fresh Produce is addressing discrepancies of

Licensing,in international marketing,

A vertical marketing system owned and operated by a single firm is called a(n) ________ channel system.