Marketing 3000 Exam 3 (Joel Poor)
Chapters 8 – 14 Test Questions and All
Quality Correct Answers 2025-2026
Update.
Channel members - Answer Distributors, intermediaries, resellers, or middlemen.
Membership includes wholesalers (who sell to other intermediaries) and retailers (who sell to
consumers)
Functions of channel members - Answer Transactional, logistical, facilitation functions
Transactional functions - Answer Contacting and promoting products to potential customers.
Logistical functions - Answer Provided through the physical distribution, storing, and sorting
of goods.
Facilitation functions - Answer Includes both research and financing.
Research function -> collection and dissemination of information to and from the producer and
the consumer.
Depth of distribution channel - Answer Refers to the number of intermediaries between the
producer of a good and the consumer.
Width of a channel - Answer The number of outlets offering a product in a particular
geographic area.
Types of channel coverage strategies - Answer Intensive, selective, exclusive
Intensive distribution - Answer Stocking the product in as many outlets as possible. Provides
the widest coverage.
Routine decisions
,Not every product is intensively distributed because distribution cost goes up as the coverage
widens and there is a tradeoff between coverage and sales effort on the part of channel
members (the greater the number of outlets carrying product, the lower percentage of sales
made by any one outlet).
Examples: electronics, appliances, watches, other moderately priced items.
Limited decision
Exclusive distribution - Answer Giving a limited number of dealers the exclusive right to
distribute the company's products in their territories. Maximizes sales effort while minimizing
coverage.
Used by firms offering luxury goods or specialty products.
Extensive decision.
Licensing - Answer Can generate revenue flow with little new investment. Can be good for a
company that possesses adv tech, strong brand image, or valuable intellectual property.
Advantages of licensing - Answer - Enables companies to circumvent tariffs, quotas, or
similar export barriers
- Licensees are granted considerable autonomy and are free to adapt the licensed goods to local
tastes
Disadvantages of licensing - Answer -Limited market control
-Returns may be lost
-The agreement may be short-lived
-Licensee may become competitor
-Licensee may exploit company resources
Global strategic partnerships (GSP) - Answer Ambitious, reciprocal, cross-border alliances
that may involve business partners in a number of different country markets.
, -Participants share the benefits of the alliance as well as control over the performance of
assigned tasks
-Participants make ongoing contributions in technology, products, and other key strategic areas.
Joint venture - Answer One type of strategic alliance.
Partners (parents) share equity investments in an independent entity (child). Offers two or more
companies the opportunity to share risk and combine complementary strengths.
Advantages of joint ventures - Answer - Company can limit financial risks as well as its
exposure to political uncertainty.
- Use the experience to to learn about new market environment
- Allow partners to achieve synergy by combining different value chain strengths.
- May be the only way to enter a country or region if gov favors local companies, tarifs too high,
laws prohibit foreign control.
Disadvantages of joint ventures - Answer - Must share rewards as well as risks
- Potential for conflict between partners
Foreign direct investment - Answer Investment made by a foreign company in the economy
of another country.
Used to establish operations outside of home country through green field investment,
acquisition of minority or majority equity stake in foreign business, or taking ownership of
existing business entity through merger or outright acquisition.
Green field investment - Answer Constructing new operational facilities in a foreign country.
Advantages of direct investment, acquisition, or ownership - Answer - May provide instant
market access
- Offers greater control than other market entry methods.
Disadvantages of direct investment, acquisition, or ownership - Answer - Requires most
commitment in terms of managerial effort and investment.
Chapters 8 – 14 Test Questions and All
Quality Correct Answers 2025-2026
Update.
Channel members - Answer Distributors, intermediaries, resellers, or middlemen.
Membership includes wholesalers (who sell to other intermediaries) and retailers (who sell to
consumers)
Functions of channel members - Answer Transactional, logistical, facilitation functions
Transactional functions - Answer Contacting and promoting products to potential customers.
Logistical functions - Answer Provided through the physical distribution, storing, and sorting
of goods.
Facilitation functions - Answer Includes both research and financing.
Research function -> collection and dissemination of information to and from the producer and
the consumer.
Depth of distribution channel - Answer Refers to the number of intermediaries between the
producer of a good and the consumer.
Width of a channel - Answer The number of outlets offering a product in a particular
geographic area.
Types of channel coverage strategies - Answer Intensive, selective, exclusive
Intensive distribution - Answer Stocking the product in as many outlets as possible. Provides
the widest coverage.
Routine decisions
,Not every product is intensively distributed because distribution cost goes up as the coverage
widens and there is a tradeoff between coverage and sales effort on the part of channel
members (the greater the number of outlets carrying product, the lower percentage of sales
made by any one outlet).
Examples: electronics, appliances, watches, other moderately priced items.
Limited decision
Exclusive distribution - Answer Giving a limited number of dealers the exclusive right to
distribute the company's products in their territories. Maximizes sales effort while minimizing
coverage.
Used by firms offering luxury goods or specialty products.
Extensive decision.
Licensing - Answer Can generate revenue flow with little new investment. Can be good for a
company that possesses adv tech, strong brand image, or valuable intellectual property.
Advantages of licensing - Answer - Enables companies to circumvent tariffs, quotas, or
similar export barriers
- Licensees are granted considerable autonomy and are free to adapt the licensed goods to local
tastes
Disadvantages of licensing - Answer -Limited market control
-Returns may be lost
-The agreement may be short-lived
-Licensee may become competitor
-Licensee may exploit company resources
Global strategic partnerships (GSP) - Answer Ambitious, reciprocal, cross-border alliances
that may involve business partners in a number of different country markets.
, -Participants share the benefits of the alliance as well as control over the performance of
assigned tasks
-Participants make ongoing contributions in technology, products, and other key strategic areas.
Joint venture - Answer One type of strategic alliance.
Partners (parents) share equity investments in an independent entity (child). Offers two or more
companies the opportunity to share risk and combine complementary strengths.
Advantages of joint ventures - Answer - Company can limit financial risks as well as its
exposure to political uncertainty.
- Use the experience to to learn about new market environment
- Allow partners to achieve synergy by combining different value chain strengths.
- May be the only way to enter a country or region if gov favors local companies, tarifs too high,
laws prohibit foreign control.
Disadvantages of joint ventures - Answer - Must share rewards as well as risks
- Potential for conflict between partners
Foreign direct investment - Answer Investment made by a foreign company in the economy
of another country.
Used to establish operations outside of home country through green field investment,
acquisition of minority or majority equity stake in foreign business, or taking ownership of
existing business entity through merger or outright acquisition.
Green field investment - Answer Constructing new operational facilities in a foreign country.
Advantages of direct investment, acquisition, or ownership - Answer - May provide instant
market access
- Offers greater control than other market entry methods.
Disadvantages of direct investment, acquisition, or ownership - Answer - Requires most
commitment in terms of managerial effort and investment.
