MKTG 3340 Exam 3 Test Questions with 100% Complete Answers, A+

How do intermediaries create value? - Transactional Function: buying/selling/risk taking Logistical Function: storing/assorting (mix of products)/sorting(lots of a single product)/bulk breaking(one large item broken down)/transporting Facilitating: financing/grading/marketing info and research We use intermediaries to: - make a product or service available by consumers or industrial use be more efficient: reduce # of contacts allow firms to focus on core competencies reduce financial risk and investment Different types of intermediaries - Merchant Wholesalers Agents and Brokers Middlemen (intermediary between manufacturer and end-user) Retailer (sells to consumers) Distributor (variety of distribution functions) Dealer (can be a distributor, wholesaler, retailer, etc) Merchant Wholesalers - Independently owned firms take title to own the merchandise -Full service: general or specialty -limited service: Rack jobbers (stock racks), cash and carry wholesalers (sell to those who call, provide transportation and pay cash), drop shippers (desk jobbers- solicit orders and ship directly w/o handling stock), or truck jobbers (have warehouse with stock, use trucks to distribute) Agents and brokers - Don't own merchandise and perform fewer channel functions; make $ from commission or fees rather than sales -manufacturer's agent: carry noncompetitive, complementary products in an exclusive territory -selling agent: represent a single producer and are responsible for entire marketing function (drug reps) -broker: independent with the function of bringing buyers and sellers together to make sale (real estate) Multi-channel marketing - Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining and building relations with consumers Direct vs. Indirect channel - Direct: Producer sells directly to consumer Indirect: Producer uses retailer, agent, and/or wholesaler Channel choice - Channel depends on which will provide best coverage of tgt market: intensive, exclusive, selective satisfy the buying req'ts of tgt mkt: info, convenience, variety, pre/post sale services and will be most profitable: advertising and selling expenses for one channel over another Channel Conflicts - Horizontal: occur among firms at the same level of the channel (two car dealers) Vertical: occur between different levels of the same channel (franchise disagreements) Dual distribution vs. strategic alliance vs. direct distribution - -Dual distribution: using two or more different types of channels to reach different buyers with same product -strategic channel alliance: one firm's marketing channel is used to sell another firm's products -direct going indirect: starbucks in grocery store Retail - All activities associated with selling, renting and providing G&S to ultimate consumers for personal, family or household use Consumer Utilities - Time: retailer provides access at convenient times (self-scanners, 24 hour Place: Provides access to products at convenient places (ATM machines, retail apps) Form: provides product in a form best for you (customizable products) Possession: makes purchase process easier (product trial by Maytag, Check-out anywhere in Apple) Classifying retail outlets - Form of ownership: independent retailer (owned by individual), Corporate chain (multiple outlets under common ownership), Contractual Systems (independently owned stores that act like a chain) Levels of service: self service (little provided by outlet), limited service (some service-Target), full-service (many services-Nordstrom) Merchandise Line: depth- considerable assortment of related items, breadth-broad mix of products