Question 1

Which of the following is not one of the basic distribution decisions that most firms must address?

Accepted Answer

A)  Which individual should be chosen as channel manager
B)  The role distribution should play in the firm's overall objectives and strategies
C)  The role distribution should play in the marketing mix
D)  How the firm's channels should be designed to achieve its distribution objectives
E)  How channel member performance can be evaluatedF) A) and B)
G) D) and E)

Question 2

Partnerships with dealers, such as that enjoyed by Caterpillar tractors are based largely on:

Accepted Answer

A)  Good communication.
B)  Long-term channel strategy.
C)  Very low prices.
D)  Using technology and up-to-date information systems.
E)  Common goals.F) C) and E)
G) A) and B)

Question 3

The more crucial distribution objectives are to a firm's long-run success:

Accepted Answer

A)  The more frequently channel strategy should be revised.
B)  The higher the level of management at which it should be considered.
C)  The higher the cost of developing the necessary distribution systems.
D)  The more often an environmental analysis should be conducted.
E)  The more important the firm's mission and objectives become.F) B) and D)
G) B) and C)

Question 4

Which of the following is not a condition that argues for placing strategic emphasis on distribution in the marketing mix?

Accepted Answer

A)  Parity exists among competitors' pricing.
B)  Distribution is the most relevant variable for satisfying target market demand.
C)  Little vulnerability exists because of strong competitor attention to distribution.
D)  Distribution can enhance the firm by creating a synergy.
E)  Competitors enjoy parity in the promotion variable of the marketing mix.F) None of the above
G) A) and E)

Question 5

After the channel has been designed, the channel manager still has to address fundamental strategic questions regarding all of the following except:

Accepted Answer

A)  The closeness of the relationship with the channel members.
B)  How to motivate channel member cooperation.
C)  How to use the marketing mix.
D)  The intensity of distribution.
E)  How channel members can cooperate in achieving the manufacturer's objectives.F) A) and E)
G) All of the above

Question 6

Payment by the manufacturer for obtaining space on retailers' shelves is commonly referred to as a:

Accepted Answer

A)  Trade discount.
B)  Promotional allowance.
C)  Display and selling aid.
D)  Price guarantee.
E)  Slotting allowance.F) All of the above
G) A) and C)

Question 7

Volvo GM Heavy Truck Corporation cited in the text illustrates:

Accepted Answer

A)  That aggressive pricing is key.
B)  Customer service is key.
C)  Heavy inventory carried by dealers is a must for good service.
D)  That all too often customers are too spread out.
E)  Keeping high levels of inventories is crucial to good customer service.F) A) and B)
G) A) and C)

Question 8

If a manufacturer's products are "middle of the road" in quality and aimed at the mass market, its distribution strategy should stress:

Accepted Answer

A)  Exclusive distribution.
B)  Broad coverage of the market.
C)  Very selective distribution.
D)  Intensive or exclusive distribution.
E)  Regional distribution.F) C) and E)
G) C) and D)

Question 9

The reputation a manufacturer acquires among channel members for furnishing products, services, financial returns, and systems that are in some way superior to those offered by competing manufacturers is referred to as:

Accepted Answer

A)  Channel position.
B)  Channel strength.
C)  Channel design.
D)  Channel superiority.
E)  Channel differentiation.F) B) and D)
G) None of the above

Question 10

Channel strategy should guide channel design so as to help the firm attain:

Accepted Answer

A)  The most efficient channel.
B)  The lowest cost channel.
C)  Differential advantage.
D)  Increased profits.
E)  Power over other members of the channel.F) A) and E)
G) A) and D)

Question 11

A well-developed marketing channel comprised of the right channel members can create __________ between the manufacturer and channel members.

Accepted Answer

A)  synergy
B)  problems
C)  a legal partnership
D)  unforeseen obstacles
E)  conflictF) A) and B)
G) B) and D)

Question 12

The principal lesson BMW learned from Michael Dell of Dell Computer is:

Accepted Answer

A)  Customers are looking for the lowest price.
B)  Highly standardized products sell best.
C)  Custom made distribution can attract customers.
D)  Customers who need no technical support will buy from BMW.
E)  Insecure customers who are afraid to venture into dealerships will buy from BMW.F) B) and E)
G) A) and C)

Question 13

The most fundamental distribution decision of all for any firm or organization to consider is the role:

Accepted Answer

A)  Distribution will play in the marketing mix.
B)  Distribution will play in channel design.
C)  Distribution will play in the firm's overall objectives and strategies.
D)  Distribution will play in channel management.
E)  Distribution will play in channel member evaluation.F) D) and E)
G) B) and D)

Question 14

DPA stands for:

Accepted Answer

A)  Distribution price allocation.
B)  Distribution product advertising.
C)  Distribution portfolio analysis.
D)  Distribution production alternatives.
E)  Distribution promotion analysis.F) A) and D)
G) A) and C)

Question 15

Which of the following is a false statement about Edward D. Jones and Company?

Accepted Answer

A)  They have consciously decided to avoid Internet sales.
B)  The company opens four new bricks and mortar offices per day.
C)  Customers desire human contact.
D)  Marketing channels of physical offices and "real-live" brokers are essential to the company's core mission.
E)  The company maintains a pretax profit of 10% which is below the industry average.F) C) and E)
G) C) and D)

Question 16

The main reason WD-40 is in 75 percent of all U.S. households seems to be:

Accepted Answer

A)  Its efficient inbound logistics.
B)  Marketing and sales.
C)  Its retail distribution channels.
D)  Technology development.
E)  Procurement.F) C) and D)
G) None of the above

Question 17

When Mattel sells Barbie's younger sister, Kelly, only at Target stores, Mattel is engaging in:

Accepted Answer

A)  A long-term placement strategy.
B)  Channel member selection strategy.
C)  Exclusive placement strategy.
D)  Target market selection strategy.
E)  Intermediary selection strategy.F) All of the above
G) A) and D)

Question 18

Which of the following statements regarding the marketing mix is true?

Accepted Answer

A)  When distribution is the most relevant marketing mix element, it is because power retailers are channel members.
B)  Distribution usually is the leading variable in the marketing mix unless the manufacturer owns and operates its own retailing operation.
C)  As the number of channel members expands, so does the importance of distribution in the marketing mix.
D)  The most emphasis should be placed on profits and placement in developing a marketing mix.
E)  Distribution can offer a more favorable basis for developing the competitive edge because it is not easily copied.F) A) and E)
G) D) and E)

Question 19

How close a channel relationship any given manufacturer should develop with its channel members is really a question of:

Accepted Answer

A)  Cost.
B)  Strategy.
C)  Channel lengths.
D)  Tactics.
E)  Behavioral dimensions.F) C) and E)
G) None of the above

Question 20

Many manufacturers have neglected distribution because:

Accepted Answer

A)  Product, price and promotion are more difficult to control.
B)  Independent channel members can be difficult to control.
C)  It takes too long for distribution to impact market share.
D)  The decisions are difficult to make.
E)  It is hard to obtain the information.F) A) and E)
G) A) and B)

Exam 5: Strategy in Marketing Channels

How close a channel relationship any given manufacturer should develop with its channel members is really a question of:

Correct AnswerverifiedShow Answer

If a manufacturer's products are "middle of the road" in quality and aimed at the mass market, its distribution strategy should stress:

Correct AnswerverifiedShow Answer

Which of the following statements regarding the marketing mix is true?

Correct AnswerverifiedShow Answer

Which of the following is not a condition that argues for placing strategic emphasis on distribution in the marketing mix?

Correct AnswerverifiedShow Answer

After the channel has been designed, the channel manager still has to address fundamental strategic questions regarding all of the following except:

Correct AnswerverifiedShow Answer

The principal lesson BMW learned from Michael Dell of Dell Computer is:

Correct AnswerverifiedShow Answer

The most fundamental distribution decision of all for any firm or organization to consider is the role:

Correct AnswerverifiedShow Answer

The main reason WD-40 is in 75 percent of all U.S. households seems to be:

Correct AnswerverifiedShow Answer

The reputation a manufacturer acquires among channel members for furnishing products, services, financial returns, and systems that are in some way superior to those offered by competing manufacturers is referred to as:

Correct AnswerverifiedShow Answer

Many manufacturers have neglected distribution because:

Correct AnswerverifiedShow Answer

Which of the following is not one of the basic distribution decisions that most firms must address?

Correct AnswerverifiedShow Answer

Which of the following is a false statement about Edward D. Jones and Company?

Correct AnswerverifiedShow Answer

The more crucial distribution objectives are to a firm's long-run success:

Correct AnswerverifiedShow Answer

DPA stands for:

Correct AnswerverifiedShow Answer

Volvo GM Heavy Truck Corporation cited in the text illustrates:

Correct AnswerverifiedShow Answer

When Mattel sells Barbie's younger sister, Kelly, only at Target stores, Mattel is engaging in:

Correct AnswerverifiedShow Answer

Payment by the manufacturer for obtaining space on retailers' shelves is commonly referred to as a:

Correct AnswerverifiedShow Answer

Channel strategy should guide channel design so as to help the firm attain:

Correct AnswerverifiedShow Answer

Partnerships with dealers, such as that enjoyed by Caterpillar tractors are based largely on:

Correct AnswerverifiedShow Answer

A well-developed marketing channel comprised of the right channel members can create __________ between the manufacturer and channel members.

Correct AnswerverifiedShow Answer

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