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Marketing Channels
Exam 1
12
Marketing
Undergraduate 4
09/23/2013

Additional Marketing Flashcards

 


 

Cards

Term
Which is not a part of the definition of marketing channel?
Definition

 

Non-Contactual, i.e., channel does notinvolve negotiatory functions.

 

Term
Define Multi-channel conflict. Illustrate with an example
Definition

 

Selling same product through more than one channel such as retail stores and online can lead to contention between the two outlets. 

 

Term
Three guitar-makers sell their products through two distributors each to five different end-user firms. What is the total number of contacts in the above arrangement?
Definition
3*2+ 2*5=16
Term

 

Convergence of in-store, catalog and online retailing is known as:

 

Definition

 

Three-tailing

 

Term
Describe economies of scope in your own words
Definition

 

Can share costs/ efficiencies across different types of products.

 

Term
Merchant wholesalers always work on a commission basis. 
Definition
False
Term
Manufacturers have only a limited control over their reps.
Definition
True
Term
Private label brands tend to increase retailer power over manufacturers.
Definition
True
Term
The “Colgate Doctrine” is
Definition
The legal basis for sellers to use their own judgment in deciding to deal with new channel members.
Term
Rack jobbers are a type of limited function wholesaler
Definition
True
Term
List one difference between dual distribution and exclusive dealings.
Definition

 

Dual distribution refers to a scenario where the same product is sold through company’s own outlet as well as through an independent dealer.  Exclusive dealing does not involve necessarily the idea of selling through company’s own stores. It implies a situation where a firm (manufacturer) forces a retailer to carry only the manufacturer’s products.

 

Term

 

Define territorial restrictions . Can they be beneficial to firms ?  Why/ how?

 

Definition

 

Territorial restriction is an arrangement where one dealer gets the exclusive right to represent a manufacturer in a given location. It can be good because it can create commitment in the dealer’s mind towards’ manufacturer brands, and the dealer will strive hard against other competing brands (INTER-BRAND competition); this can promote competition.

 

-- But as explained in class, by itself, territorial exclusivity can reduce competition between dealers of same brand (INTRA-BRAND competition).

 

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