A Framework for Marketing Management, 5e (Kotler)
Chapter 13 Designing and Managing Integrated Marketing Channels
1) ________ are sets of interdependent organizations participating in the process of making a
product or service available for use or consumption.
A) Marketing channels
B) Interstitials
C) Communication channels
D) Sales territories
E) Marketing terrains
2) Which of the following entities in the marketing channel is a merchant?
A) wholesalers
B) brokers
C) sales agents
D) warehouses
E) advertising agencies
3) A(n) ________ is a facilitator who assists in the distribution process.
A) advertising agency
B) sales agent
C) manufacturer’s representative
D) broker
E) wholesaler
4) A manufacturer uses the company’s sales force and trade promotions to carry, promote, and
sell products to end users. Which of the following strategies is this manufacturer using?
A) personalization strategy
B) tailoring strategy
C) push strategy
D) pull strategy
E) consumer promotion strategy
5) Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable
running shoes. The shoes come with a digital component that allows them to adapt to the runner’s
biomechanics. To promote this new product, Spike launches an advertising campaign and also
ropes in a famous athlete to endorse the product. This is an example of a ________.
A) trade promotion
B) reverse flow
C) push strategy
D) pull strategy
E) backward flow
6) When is a pull strategy appropriate?
A) when there is low brand loyalty
B) when consumers are able to perceive differences between brands
C) when brand choice is made in the store
D) when it is a low involvement purchase
E) when the product is an impulse item
7) Using the push strategy is most appropriate when ________.
A) consumers are able to perceive differences between brands
B) the product being sold is an impulse item
C) there is high brand loyalty for the product
D) the product is a high involvement purchase
E) consumers choose the brand before they go to the store
8) A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to
medium-sized accounts. The firm is using ________ marketing.
A) hybrid
B) pull
C) personalized
D) vertical
E) internal
9) A computer manufacturing company allows customers to place orders online which they can
later pick up from a convenient retail location. Which of the following terms best represents this
practice?
A) channel integration
B) mass customization
C) online personalization
D) push strategy
E) internal marketing
10) Which of the following is the most accurate description of a value network?
A) A system of partnerships and alliances that a firm creates to source, augment, and deliver its
offerings.
B) A system of organizations and resources involved in moving a product from supplier to
customer.
C) An arrangement whereby an organization transforms inputs into finished goods.
D) A network that allows an organization take the finished products to the end-users.
E) A communication network that allows an organization to transfer information to end-
customers.
11) Companies should first think of the target market and then design the supply chain backward
from that point. This strategy is called ________.
A) demand chain planning
B) resource planning
C) external channel planning
D) materials planning
E) strategic business planning
12) Producers often shift some functions to intermediaries. Which of the following is the most
significant benefit of doing this?
A) It increases customer loyalty.
B) It provides the producer with greater control over operations.
C) It reduces the amount of direct customer interaction.
D) It lowers the producer’s costs and prices.
E) It ensures greater information security.
13) Which of the following is an example of a zero-level channel?
A) A company takes online orders from customers and ships the products to them.
B) An organization uses a combination of direct salespeople and sales agencies to increase sales.
C) A company sells its products through wholesalers and retailers.
D) A company sells its products through chains of supermarkets and other large sellers.
E) A large company forms alliances with smaller companies to increase sales coverage.
14) Which of the following entities is present in a zero-level marketing channel?
A) consumers
B) retailers
C) brokers
D) jobbers
E) wholesalers
15) A direct marketing channel is a ________.
A) one-level channel
B) two-level channel
C) zero-level channel
D) three-level channel
E) reverse-flow channel
16) Which of the following activities is a reverse-flow channel of marketing?
A) raw materials movement
B) product recycling
C) materials ordering
D) finished goods storage
E) customer order placement
17) Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers,
which helps customers save on transportation and search costs in buying and repairing an
automobile. Which of the following service outputs relates to this competitive advantage?
A) spatial convenience
B) service backup
C) lot size
D) waiting time
E) delivery time
18) As a service output produced by marketing channels, product variety refers to the ________.
A) units the channel permits a customer to purchase at once
B) assortment provided by the marketing channel
C) add-on services provided by the channel
D) ability of a product to provide incremental value
E) degree to which the channel makes it easy for customers to purchase a product
19) Which of the following terms refers to the add-on services, such as credit, delivery,
installation, and repairs, provided by a marketing channel?
A) service backup
B) product accessories
C) external products
D) product variety
E) service extensions
20) Atburex is a furniture manufacturing company in the United States. The company provides a
sixty day credit period and EMI options to customers and also offers on-site delivery and
installation. These special benefits refer to which of the following service outputs?
A) good service backup
B) large product variety
C) spatial convenience
D) large lot size
E) short waiting time
21) Which of the following allows a firm to maintain control over the service level and obtain
more dedicated and knowledgeable selling?
A) selective distribution
B) intensive distribution
C) push strategy
D) exclusive distribution
E) pull strategy
22) Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for
men and women. The company has only nine distributors across the United States. These
distributors control a nationwide network of 600 retailers. The company does not sell its products
through other channels. This is an example of ________ distribution.
A) selective
B) intensive
C) exclusive
D) internal
E) passive
23) Exclusive dealing arrangements are mainly used by companies looking for an edge in
markets increasingly driven by ________.
A) price
B) efficiency
C) product variety
D) add-on services
E) spatial convenience
24) An intensive distribution strategy serves well for ________.
A) premium cars
B) commercial trucks
C) private label products
D) industrial equipment
E) newspapers
25) Which of the following covers payment terms and producer guarantees?
A) conditions of sale
B) pricing policies
C) exclusive dealings
D) mutual services
E) territorial rights
26) Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens,
restaurants, hotels, and so forth. The company provides a one-year warranty on all products and
also allows customers to pay in installments–they pay fifty percent on delivery and the rest as
equal installments. This refers to which element in the “trade-relations mix”?
A) price policy
B) conditions of sale
C) distributors’ territorial rights
D) exclusive dealings
E) mutual services and responsibilities
27) Which of the following channels is associated with the lowest cost per transaction?
A) Internet
B) telemarketing
C) retail stores
D) distributor
E) sales force
28) Which marketing channel is associated with the highest value added per sale?
A) retail stores
B) sales force
C) distributors
D) Internet
E) telemarketing
29) A manufacturer is using legitimate power when it ________.
A) requests a behavior that is warranted under the selling contract
B) threatens to withdraw a resource or terminate a relationship
C) offers intermediaries an extra benefit for performing specific acts or functions
D) makes the intermediaries sell more of a particular product by offering rewards
E) sells more products by making use of its reputation in the market
30) A new firm typically starts as a local operation selling in a fairly circumscribed market by
________.
A) finding and developing new intermediaries
B) using a few existing intermediaries
C) forming partnerships with the market leader
D) creating a special channel
E) forming partnerships with other firms
31) A producer must modify its channel design and arrangements if ________.
A) consumer buying patterns change
B) the competition in the market stabilizes
C) the product is in the growth stage of its life cycle
D) the market size remains unchanged for a particular period
E) the firm’s profits stabilize
32) What is the major difference between a conventional marketing channel and a vertical
marketing system (VMS)?
A) Elements in a conventional marketing channel act as separate businesses whereas the
elements in a VMS act as a unified system.
B) A VMS has many intermediaries whereas a conventional marketing channel has a limited
number of intermediaries.
C) A VMS is characterized by an independent producer whereas a conventional marketing
channel is characterized by multiple producers.
D) A conventional marketing channel has elements such as retailers and wholesalers whereas
these elements are not present in a VMS.
E) Producers have complete control over the other members in a conventional marketing channel
whereas this control is minimal in a VMS.
33) A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified
system.
A) parallel marketing channel
B) vertical marketing system
C) extensive marketing channel
D) internal marketing system
E) conventional marketing channel
34) A(n) ________ vertical marketing system combines successive stages of production and
distribution under single ownership.
A) corporate
B) administered
C) contractual
D) regulatory
E) controlled
35) Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of
decorative paint products and industrial coatings. In addition to making paints, the company also
owns and operates the retail stores which sell its products. This is an example of a(n) ________
vertical marketing system.
A) administered
B) contractual
C) referent
D) corporate
E) regulated