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Lancome, makes and markets a range of cosmetics and skincare products which are sold through department stores and pharmacies. Before a retailer is permitted to stock the Lancome brand, the retailer's staff must undergo appropriate product and sales training with Lancome's Head Office. In this way, Lancome exerts some control over the quality of retail outlets stocking its product and also minimises potential channel conflict by ensuring the pharmacies permitted to stock their brand are spread over a wide geographic area. Lancome is using which type of distribution?


A) intensive
B) mass
C) concentrated
D) selective
E) exclusive

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The task performed by channel members concerned with grading, assembling and packaging is:


A) promotion.
B) prospecting.
C) negotiation.
D) matching.
E) contact.

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A channel of distribution with no intermediaries is called a(n) :


A) direct marketing channel.
B) unconventional marketing channel.
C) indirect marketing channel.
D) conventional marketing channel.
E) direct retail channel.

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In a(n) _________ , two or more unrelated companies put together resources or programmes to exploit an emerging marketing opportunity.


A) administered VMN
B) corporate VMN
C) horizontal marketing system
D) multichannel marketing system
E) contractual VMN

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Two recent trends evident in the distribution of goods and services are the replacement of conventional channels with vertical marketing networks and disintermediation.

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Once a channel alternative is chosen, the channel alternatives must be selected.

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When designing a channel, the producer should choose the highest level of service possible.

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Select the word that best completes the following sentence. A major trend in distribution is __________ in which producers either cut out intermediaries and go directly to final buyers or seek out new types of channel intermediaries.


A) disintermediation
B) hybrid distribution systems
C) direct distribution
D) exclusive distribution
E) reintermediation

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Systems in which retailers organise a new, jointly- owned business to carry on wholesaling and, possibly, production activities are known as:


A) manufacturer- owned chains.
B) franchised distribution channels.
C) retail cooperatives.
D) wholesaler- sponsored voluntary chains.
E) distribution cooperatives.

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Select the word that best completes the following sentence. Historically,_________ have lacked the power and leadership to manage channel conflict.


A) contractual marketing systems
B) corporate vertical marketing systems
C) manufacturer sponsored marketing systems
D) retailer sponsored marketing systems
E) conventional marketing systems

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verified

Characterise a horizontal marketing network and provide an illustration of such a network.

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A horizontal marketing network is a chan...

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Once channel objectives have been established, the next step in channel design is to:


A) evaluate the major channel alternatives.
B) determine service output levels.
C) select the channel members.
D) identify the major channel alternatives.
E) set up contingency plans in the event of environmental changes.

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verified

Which of the following lists of intermodal transportation combinations means rail and trucks; water and trucks; and water and rail?


A) fishyback; airtruck; and trainship
B) piggyback; fishyback; and trainship
C) piggyback; airtruck; and fishyback
D) piggyback; fishyback; and birdyback
E) trainship; fishyback; and piggyback

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Avon, Amway and Tupperware use which of the following forms of channel distribution?


A) indirect marketing channel
B) forward channel
C) direct marketing channel
D) fashion channel
E) intermediary channel

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When Evans Toys for Boys agreed not to carry any other brand of motorcycle EXCEPT Kawasaki, it was an example of a(n) :


A) exclusive distribution arrangement.
B) tying contract.
C) reciprocal agreement.
D) vertical buying agreement.
E) horizontal buying agreement.

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Select the word that best completes the following sentence. A(n) _________ marketing channel consist of independent producers, wholesalers and retailers.


A) horizontal
B) vertical
C) lateral
D) conventional
E) independent

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A vertical marketing network is enforced by contracts.

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Select the words that best complete the following sentence. One of the biggest recent channel developments has been the rise of _________marketing networks to replace __________ marketing channels.


A) vertical; horizontal
B) horizontal; vertical
C) vertical; transient
D) vertical; conventional
E) contractual; vertical

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Packaged peanuts are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and vending machines. This is an example of _________distribution strategy.


A) selective
B) exclusive
C) horizontal
D) intensive
E) franchising

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Explain why some degree of channel conflict is inevitable in some distribution systems. Use examples to illustrate your answer.

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Conflict occurs when different members o...

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