Term
| Which is not a part of the definition of marketing channel? |
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Definition
Non-Contactual, i.e., channel does notinvolve negotiatory functions.
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Term
| Define Multi-channel conflict. Illustrate with an example |
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Definition
Selling same product through more than one channel such as retail stores and online can lead to contention between the two outlets.
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Term
| Three guitar-makers sell their products through two distributors each to five different end-user firms. What is the total number of contacts in the above arrangement? |
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Definition
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Term
Convergence of in-store, catalog and online retailing is known as:
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Definition
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Term
| Describe economies of scope in your own words |
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Definition
Can share costs/ efficiencies across different types of products.
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Term
| Merchant wholesalers always work on a commission basis. |
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Definition
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Term
| Manufacturers have only a limited control over their reps. |
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Definition
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Term
| Private label brands tend to increase retailer power over manufacturers. |
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Definition
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Term
| The “Colgate Doctrine” is |
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Definition
| The legal basis for sellers to use their own judgment in deciding to deal with new channel members. |
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Term
| Rack jobbers are a type of limited function wholesaler |
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Definition
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Term
| List one difference between dual distribution and exclusive dealings. |
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Definition
Dual distribution refers to a scenario where the same product is sold through company’s own outlet as well as through an independent dealer. Exclusive dealing does not involve necessarily the idea of selling through company’s own stores. It implies a situation where a firm (manufacturer) forces a retailer to carry only the manufacturer’s products.
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Term
Define territorial restrictions . Can they be beneficial to firms ? Why/ how?
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Definition
Territorial restriction is an arrangement where one dealer gets the exclusive right to represent a manufacturer in a given location. It can be good because it can create commitment in the dealer’s mind towards’ manufacturer brands, and the dealer will strive hard against other competing brands (INTER-BRAND competition); this can promote competition.
-- But as explained in class, by itself, territorial exclusivity can reduce competition between dealers of same brand (INTRA-BRAND competition).
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