BUS2 130 Exam 3 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Value delivery network - CORRECT ANSWER made up of the company, suppliers,
distributors, and ultimately, customers who "partner" with each other to improve the performance of
the entire system in delivering customer value
Most large companies engaged with value delivery network
Ex: Pepsi makes great beverages but to make and market just one of its many lines- say its classic cola
Upstream Supply Chain - CORRECT ANSWER set of firms that supply the raw materials,
components, parts, information, finances, and expertise needed to create a product or service
Marketing channel (distribution channel) - CORRECT ANSWER A set of interdependent
organizations that help make a product or service available for use or consumption by the consumer or
business user
A company's channel decisions directly affect every other marketing decision
Companies often pay too little attention to distribution channels- sometimes with damaging results
while many companies have used imaginative distribution systems to gain a competitive advantage
Ex: Suppliers, Manufacturers, Retailers, Consumers
Distribution channel decisions often involve long-term commitments to other firms.
It is harder to change their advertising, pricing or promotion programs when they set up distribution
channels through franchises, independent dealers, or large retailers because they can't readily replace
these channels with company-owned stores or internet sites.
Why Channel Members Add Value? - CORRECT ANSWER Producers use intermediaries
because they create greater efficiency in making goods available to target markets.
Experience, contacts, scale of operation and specialization of intermediaries offer firms more than it
can achieve on its own
Channel level - CORRECT ANSWER A layer of intermediaries that performs some work in
bringing the product and its ownership closer to the final buyer
The number of intermediaries levels indicates the length of the channel
, Direct marketing channel (Channel 1): - CORRECT ANSWER a marketing channel that has no
intermediary levels
A company sells their products directly to consumers
Indirect marketing channel - CORRECT ANSWER a marketing channel that contains one or
more intermediary levels
Examples of indirect marketing channels - CORRECT ANSWER Producer to Retailer to
Consumer
Producer to Wholesaler to Retailer to Consumer
Wholesalers - CORRECT ANSWER Sell for resale or business use
Retailers - CORRECT ANSWER sell for personal or household consumption
How Distributors Reduce the Number of Channel Transactions - CORRECT ANSWER
Number of contacts without a distributor: 9
Number of contacts with a distributor: 3
Channel Behavior and Organization - CORRECT ANSWER A marketing channel consists of
firms that have partnered for their common good (depend on each other)
Each channel member plays a specialized role in the channel and the channel will be the most
successful when each member assumes the tasks it can do best
Although channel members depend on one another, they often act alone in their own short-term best
interests.
Channel conflict - CORRECT ANSWER disagreements among marketing channel members on
goals, roles, and rewards- who should do what and for what rewards
QUESTIONS AND CORRECT ANSWERS
Value delivery network - CORRECT ANSWER made up of the company, suppliers,
distributors, and ultimately, customers who "partner" with each other to improve the performance of
the entire system in delivering customer value
Most large companies engaged with value delivery network
Ex: Pepsi makes great beverages but to make and market just one of its many lines- say its classic cola
Upstream Supply Chain - CORRECT ANSWER set of firms that supply the raw materials,
components, parts, information, finances, and expertise needed to create a product or service
Marketing channel (distribution channel) - CORRECT ANSWER A set of interdependent
organizations that help make a product or service available for use or consumption by the consumer or
business user
A company's channel decisions directly affect every other marketing decision
Companies often pay too little attention to distribution channels- sometimes with damaging results
while many companies have used imaginative distribution systems to gain a competitive advantage
Ex: Suppliers, Manufacturers, Retailers, Consumers
Distribution channel decisions often involve long-term commitments to other firms.
It is harder to change their advertising, pricing or promotion programs when they set up distribution
channels through franchises, independent dealers, or large retailers because they can't readily replace
these channels with company-owned stores or internet sites.
Why Channel Members Add Value? - CORRECT ANSWER Producers use intermediaries
because they create greater efficiency in making goods available to target markets.
Experience, contacts, scale of operation and specialization of intermediaries offer firms more than it
can achieve on its own
Channel level - CORRECT ANSWER A layer of intermediaries that performs some work in
bringing the product and its ownership closer to the final buyer
The number of intermediaries levels indicates the length of the channel
, Direct marketing channel (Channel 1): - CORRECT ANSWER a marketing channel that has no
intermediary levels
A company sells their products directly to consumers
Indirect marketing channel - CORRECT ANSWER a marketing channel that contains one or
more intermediary levels
Examples of indirect marketing channels - CORRECT ANSWER Producer to Retailer to
Consumer
Producer to Wholesaler to Retailer to Consumer
Wholesalers - CORRECT ANSWER Sell for resale or business use
Retailers - CORRECT ANSWER sell for personal or household consumption
How Distributors Reduce the Number of Channel Transactions - CORRECT ANSWER
Number of contacts without a distributor: 9
Number of contacts with a distributor: 3
Channel Behavior and Organization - CORRECT ANSWER A marketing channel consists of
firms that have partnered for their common good (depend on each other)
Each channel member plays a specialized role in the channel and the channel will be the most
successful when each member assumes the tasks it can do best
Although channel members depend on one another, they often act alone in their own short-term best
interests.
Channel conflict - CORRECT ANSWER disagreements among marketing channel members on
goals, roles, and rewards- who should do what and for what rewards
