MKT 555 Final Study Guide Questions
With Correct Answers
Direct Selling Model - CORRECT ANSWER✔✔-Manufacture-> Customer
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Indirect selling method - CORRECT ANSWER✔✔-Manufacture->Intermediate
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(wholesaler/retailed/broker/main rep) ->customer | |
Outsourcing - CORRECT ANSWER✔✔-when companies chose to sell through
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intermediators, they are outsourcing/delegating tasks | | | |
Easiest way to copy a company (easy to hard): - CORRECT ANSWER✔✔-1. Price:
| | | | | | | | | | | | |
Change your price is easy, matching is easy
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2. Promotion: May take days or weeks to copy
| | | | | | | |
3. Product: weeks or months to copy
| | | | | |
4. Place: channels of distribution can give you a sustainable competitive
| | | | | | | | | | |
advantage
Reasons for Intermediaries - CORRECT ANSWER✔✔-o Cost a lot of capital and
| | | | | | | | | | | |
takes a lot of time to reach to customers directly. That's why they've used
| | | | | | | | | | | | | |
intermediaries, they can carry out cost | | | | |
o Time to market- fast moving companies vs low moving
| | | | | | | | |
,Reasons to net sell through intermediaries - CORRECT ANSWER✔✔-o The costs
| | | | | | | | | | |
are already low
| |
o It's a specialized product- intermediaries don't have knowledge
| | | | | | | |
o The higher customization, low chance to use intermediaries
| | | | | | | |
Push Versus Pull Strategies - CORRECT ANSWER✔✔-Push is when you go from
| | | | | | | | | | | |
manufacture to intermediate to customer. The manufacture motivates the
| | | | | | | | |
intermediate so they can sell more product. The intermediate plays an active role.
| | | | | | | | | | | |
Pull is when the manufacture goes direct to the end user, for example Kellogg
| | | | | | | | | | | | | |
sends coupons for new cereal directly to end user.
| | | | | | | |
Distribution Tasks Performed for Manufacturers - CORRECT ANSWER✔✔-Market
| | | | | | | |
Coverage, Sales Contact, Inventory Holding, Order Processing, Market
| | | | | | | |
Information, Customer Support | |
Distribution Tasks Performed for customers - CORRECT ANSWER✔✔-Product
| | | | | | | |
Availability, Customer Service, Credit & Financial Assistance, Breaking Bulk, Advice
| | | | | | | | |
& Technical Support
| | |
Channel-Design Decisions - CORRECT ANSWER✔✔-Analyzing Customer Needs
| | | | | | |
and Wants |
Establishing Objectives and Constraints | | |
Identifying Major Channel Alternatives | | |
Evaluating Major Channel Alternatives
| | |
, Exclusive distribution - CORRECT ANSWER✔✔-severely limits the number of
| | | | | | | | |
intermediaries. Part of Identifying Major Channel Alternatives
| | | | | |
Selective distribution - CORRECT ANSWER✔✔-Relies on only some of the
| | | | | | | | | |
intermediaries willing to carry a particular product.Part of Identifying Major
| | | | | | | | | |
Channel Alternatives
|
Intensive distribution - CORRECT ANSWER✔✔-places the goods or services in as
| | | | | | | | | | |
many outlets as possible. Part of Identifying Major Channel Alternatives
| | | | | | | | |
Channel-Mngt Decisions - CORRECT ANSWER✔✔-Selecting Channel Members
| | | | | |
Training Channel Members
| |
Motivating Channel Members
| |
Evaluating Channel Members
| |
Managing Market Logistics
| |
Motivating channel members - CORRECT ANSWER✔✔-o Reward power:
| | | | | | | |
compensation
o Coerce power: consequences for not performing
| | | | | |
o Expert Power: they have/done research, the company has done. Intermediaries
| | | | | | | | | | |
become pumped
|
o Referent power- well established companies will motivate you
| | | | | | | |
Evaluating Channel Members - CORRECT ANSWER✔✔-o Sell to them-> treat your
| | | | | | | | | | |
intermediates as your customers- persuade them
| | | | |
With Correct Answers
Direct Selling Model - CORRECT ANSWER✔✔-Manufacture-> Customer
| | | | | |
Indirect selling method - CORRECT ANSWER✔✔-Manufacture->Intermediate
| | | | | |
(wholesaler/retailed/broker/main rep) ->customer | |
Outsourcing - CORRECT ANSWER✔✔-when companies chose to sell through
| | | | | | | | |
intermediators, they are outsourcing/delegating tasks | | | |
Easiest way to copy a company (easy to hard): - CORRECT ANSWER✔✔-1. Price:
| | | | | | | | | | | | |
Change your price is easy, matching is easy
| | | | | | |
2. Promotion: May take days or weeks to copy
| | | | | | | |
3. Product: weeks or months to copy
| | | | | |
4. Place: channels of distribution can give you a sustainable competitive
| | | | | | | | | | |
advantage
Reasons for Intermediaries - CORRECT ANSWER✔✔-o Cost a lot of capital and
| | | | | | | | | | | |
takes a lot of time to reach to customers directly. That's why they've used
| | | | | | | | | | | | | |
intermediaries, they can carry out cost | | | | |
o Time to market- fast moving companies vs low moving
| | | | | | | | |
,Reasons to net sell through intermediaries - CORRECT ANSWER✔✔-o The costs
| | | | | | | | | | |
are already low
| |
o It's a specialized product- intermediaries don't have knowledge
| | | | | | | |
o The higher customization, low chance to use intermediaries
| | | | | | | |
Push Versus Pull Strategies - CORRECT ANSWER✔✔-Push is when you go from
| | | | | | | | | | | |
manufacture to intermediate to customer. The manufacture motivates the
| | | | | | | | |
intermediate so they can sell more product. The intermediate plays an active role.
| | | | | | | | | | | |
Pull is when the manufacture goes direct to the end user, for example Kellogg
| | | | | | | | | | | | | |
sends coupons for new cereal directly to end user.
| | | | | | | |
Distribution Tasks Performed for Manufacturers - CORRECT ANSWER✔✔-Market
| | | | | | | |
Coverage, Sales Contact, Inventory Holding, Order Processing, Market
| | | | | | | |
Information, Customer Support | |
Distribution Tasks Performed for customers - CORRECT ANSWER✔✔-Product
| | | | | | | |
Availability, Customer Service, Credit & Financial Assistance, Breaking Bulk, Advice
| | | | | | | | |
& Technical Support
| | |
Channel-Design Decisions - CORRECT ANSWER✔✔-Analyzing Customer Needs
| | | | | | |
and Wants |
Establishing Objectives and Constraints | | |
Identifying Major Channel Alternatives | | |
Evaluating Major Channel Alternatives
| | |
, Exclusive distribution - CORRECT ANSWER✔✔-severely limits the number of
| | | | | | | | |
intermediaries. Part of Identifying Major Channel Alternatives
| | | | | |
Selective distribution - CORRECT ANSWER✔✔-Relies on only some of the
| | | | | | | | | |
intermediaries willing to carry a particular product.Part of Identifying Major
| | | | | | | | | |
Channel Alternatives
|
Intensive distribution - CORRECT ANSWER✔✔-places the goods or services in as
| | | | | | | | | | |
many outlets as possible. Part of Identifying Major Channel Alternatives
| | | | | | | | |
Channel-Mngt Decisions - CORRECT ANSWER✔✔-Selecting Channel Members
| | | | | |
Training Channel Members
| |
Motivating Channel Members
| |
Evaluating Channel Members
| |
Managing Market Logistics
| |
Motivating channel members - CORRECT ANSWER✔✔-o Reward power:
| | | | | | | |
compensation
o Coerce power: consequences for not performing
| | | | | |
o Expert Power: they have/done research, the company has done. Intermediaries
| | | | | | | | | | |
become pumped
|
o Referent power- well established companies will motivate you
| | | | | | | |
Evaluating Channel Members - CORRECT ANSWER✔✔-o Sell to them-> treat your
| | | | | | | | | | |
intermediates as your customers- persuade them
| | | | |
