Section: S0601 date: January 18, 2006

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DATE: January 18, 2006
STUDENT NAME:____________________________ ID#:____________________

Please use the computer card provided to enter you answers. Make sure you put your name, student ID#, Course Name & Section number on one side of the card.

MULTIPLE CHOICE (1 mark each): Choose the BEST answer for each of the following:

  1. A marketing channel is:

    1. A set of interdependent organizations involved in the process of making a product or service available for use or consumption.

    2. A manner by which products or services are sold.

    3. A method for communicating advertising.

    4. A process by which customer feedback can be provided to the manufacturer.

  2. Four factors that create change in marketing channels are;

    1. Facilitation of Search, Routinization of Transactions, Adjustment of Assortment Discrepancy, and the Reduction of the number of contacts.

    2. Environment, Government, Financials, and Competition

    3. Demographics, Psychographics, Politics, and Market Size

    4. Environment, Government, Politics, and Competition

  3. The work of a marketing channel includes the performance of___________

    1. several marketing flows

    2. primarily, keeping customers satisfied

    3. making products

    4. keeping inventory levels low

  4. Marketing channels consist of:

    1. Manufacturers, Intermediaries, and End-Users

    2. Manufacturers, Wholesalers, and Retailers

    3. Service Providers, Manufacturers, and Advertisers

    4. Trade barges navigating coastal waters

  5. License is a form of Manufacturer-Based Channel Formats…

    1. whereby distribution and marketing agreements are made that usually grant exclusivity for some period of time.

    2. that is mandatory when shipping goods FOB originator.

    3. often used to describe Franchise distributorships.

    4. used to describe the scenario where the inventor is not the producer

  6. Bartering is used to describe a

    1. service-provider-based channel format where an exchange of goods or services is made.

    2. retailer based channel format where an exchange of goods or services is made

    3. manufacturer-based channel format where an exchange of goods or services is made

    4. situation where a manufacturer has no cash to pay for distribution and exchanges product in return for shipping services.

  7. Power is:

    1. The ability of one channel member to get another channel member to do something they otherwise would not have done.

    2. Rather difficult to diagnose, because people often do what they desire regardless of power.

    3. Hypothetical, speculative and can be precisely determined.

    4. both bad and good and should be used very carefully within marketing channels.

  8. Reward, Coercive, Expert, Legitimate, and Referent are terms used to describe:

    1. The five power sources in a distribution channel

    2. Psychographic customer segmentation

    3. Buyer behaviour in a distribution channel

    4. The instructor

  9. The six influence strategies comprise:

    1. Promise, Threat, Legalistic, Request, Information Exchange, Recommendation

    2. Reward, Coercion, Legitimacy, Referent, Expertise, Reward-Coercion,

    3. Reward, Contract, License, Leverage, Coercion, Recommendation

    4. None of the above

SHORT ESSAY (6 marks): Use the space provided below to answer only ONE of the following questions:

  1. “We should not deal with powerful suppliers. They are sure to abuse us –after they use us”. Debate this statement, often heard in the meeting rooms of distributors and sales agents.

  2. Discuss and describe the three “Point-Of-Consumption Merchandising Formats”. Provide an example for each that demonstrates how they help to improve the flow of products or services.

  3. Briefly describe the key challenges of the Chinook Traders Case as discussed in class. Looking at the concept of Channel Power. Describe at least two influence strategies that could be used by Chinook Traders to distribute their products.

QUESTION # (chosen) _________


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