UGBA 10 LECTURE 9 questions with correct solutions 2023/2024

UGBA 10 LECTURE 9 What is a channel of distribution? - correct answer A group of individuals and organizations that directs the flow of products from producers and consumers What is a market intermediary? - correct answer A link between producers and other intermediaries or to the ultimate users of the product From a producer's perspective, what do the different distribution channels provide you? - correct answer An avenue to different customer segments Do channels add any value to a business? How so? - correct answer Yes; they improve efficiency in making goods available to target markets What intangible thing do channels increase? - correct answer A company's reach—different channels let you distribute to different customers you might not have been able to get to before! In what way do channels increase synergy with other marketing decisions (namely the 4Ps)? - correct answer Channels lead to many competitive advantages; eg: selling to Costco adds value by getting access to different prices, access to different markets, and reducing transaction costs! How do intermediaries increase efficiency? - correct answer They reduce the number of contacts from the producer to the consumer You can eliminate the middleman, but not the middleman's ____? - correct answer Function When does channel conflict occur? - correct answer When channels don't beg as according to manufacturer wishes What are the 3 types of channel conflicts. - correct answer 1. Horizontal channel conflicts 2. Vertical channel conflicts 3. Multichannel conflicts What is a horizontal channel conflict? - correct answer Disagreements between 2 or more channel members at the same level (eg: Safeway vs Whole Foods) What is a vertical channel conflict? - correct answer When there is disagreement between channel members on consecutive levels (eg: producer vs wholesaler) What are multichannel conflicts? - correct answer Disagreements among members in separate marketing channels What is disintermediation? What does this inevitably lead to? - correct answer The process of removing intermediaries in a channel ecosystem; multichannel conflicts Which company had a big issue with multichannel conflicts? - correct answer Magic the gathering What exactly was the issue with magic the gathering? - correct answer Product diversion—cards reserved for authorized resellers found their way to online sites What has seen a major decline due to channel conflict? - correct answer Retail stores getting demolished by the internet What are 3 channel considerations for an upstream channel member? - correct answer 1. Economic 2. Adaptive 3. Control What is the economic channel consideration? (Upstream) - correct answer The channel should be profitable and competitive with alternatives What is the adaptive channel consideration? (Upstream) - correct answer The channel should be flexible with distribution decisions: price, selling different quantities; the channel should also commit to selling a certain volume of your good and to dedicate a certain amount of space to it too What is the control channel consideration? (Upstream) - correct answer You should consider to whom the control should be given