Marketing 380 Exam 3 UPDATED ACTUAL Questions And Correct Answers
Terms in this set (79)
Retailer an intermediary who sells to consumer
3 functions performed by Intermediaries 1) Transactional function
2) Logistical function
3) Facilitating function
, Transactional functions when they buy and sell products or services
Logistical functions gathering, sorting and dispersing products
Facilitating functions make a transaction easier for buyers
4 utilities received by consumers 1) Time Utility
2) Place Utility
3) Form Utility
4) Possession Utility
Time Utility refers to having a product or service when you want it
Ex: FedEx provides next-morning delivery
Place Utility having a product or service available when consumers want it, such as having a
Chevron gas station located on a long stretch of lonely highway
Form Utility involves enhancing a product or service to make it more appealing to buyers
Ex: Cola, Lemon-lime
Possession Utility entails efforts by intermediaries to help buyers take possession of a product or
service such as having airline tickets delivered by travel agency
Direct channel the producer and the ultimate consumers deal directly with each other
Indirect channel intermediaries are inserted between the producer and consumers and perform
consumers channel functions
Vertical Marketing Systems professionally managed and centrally coordinated marketing systems designed to
achieve channel economies and maximum marketing impact
3 types of Vertical Marketing Systems 1) Corporate systems
2) Contractual systems
3) Administrated systems
Corporate systems (single ownership) the combination of successive stages of production and distribution under a
single ownership
Forward integration Ex: Ralph Lauren manufactures clothing and also owns apparel shops, Goodyear,
Apple, Sherwin-Williams
Backward integration Ex: Kroger supermarkets operate manufacturing facilities that produce everything
from aspirin to cottage cheese for sale under the Kroger label
Contractual Systems independent production and distribution firms integrate their efforts on a
contractual basis to obtain greater functional economies and marketing impact
than they could achieve alone
Terms in this set (79)
Retailer an intermediary who sells to consumer
3 functions performed by Intermediaries 1) Transactional function
2) Logistical function
3) Facilitating function
, Transactional functions when they buy and sell products or services
Logistical functions gathering, sorting and dispersing products
Facilitating functions make a transaction easier for buyers
4 utilities received by consumers 1) Time Utility
2) Place Utility
3) Form Utility
4) Possession Utility
Time Utility refers to having a product or service when you want it
Ex: FedEx provides next-morning delivery
Place Utility having a product or service available when consumers want it, such as having a
Chevron gas station located on a long stretch of lonely highway
Form Utility involves enhancing a product or service to make it more appealing to buyers
Ex: Cola, Lemon-lime
Possession Utility entails efforts by intermediaries to help buyers take possession of a product or
service such as having airline tickets delivered by travel agency
Direct channel the producer and the ultimate consumers deal directly with each other
Indirect channel intermediaries are inserted between the producer and consumers and perform
consumers channel functions
Vertical Marketing Systems professionally managed and centrally coordinated marketing systems designed to
achieve channel economies and maximum marketing impact
3 types of Vertical Marketing Systems 1) Corporate systems
2) Contractual systems
3) Administrated systems
Corporate systems (single ownership) the combination of successive stages of production and distribution under a
single ownership
Forward integration Ex: Ralph Lauren manufactures clothing and also owns apparel shops, Goodyear,
Apple, Sherwin-Williams
Backward integration Ex: Kroger supermarkets operate manufacturing facilities that produce everything
from aspirin to cottage cheese for sale under the Kroger label
Contractual Systems independent production and distribution firms integrate their efforts on a
contractual basis to obtain greater functional economies and marketing impact
than they could achieve alone
