Generally speaking, a company’s marketing channel objectives are influenced by the level of customer service sought, the nature of the company, its products, its marketing intermediaries, its competitors, and the environment.

• A) True
• B) False
• C)
• D)

POP promotions include displays and demonstrations that take place at the point of purchase or sale.

• A) False
• B) True
• C)
• D)

The basis behind integrated logistics management is providing better customer service and trimming distribution costs. This requires teamwork, both inside the company and among all the marketing channel organizations.

• A) True
• B) False
• C)
• D)

Intensive distribution seeks many outlets in a market, selective distribution seeks several outlets, and exclusive distribution seeks only one outlet in a given market area.

• A) False
• B) True
• C)
• D)

Sales promotion consists of short-term incentives to encourage purchases or sales of a product or service.

• A) True
• B) False
• C)
• D)

With the success of the Internet, few producers sell through intermediaries today.

• A) True
• B) False
• C)
• D)

Companies often forget to pay enough attention to their distribution channels, resulting in their failure to make long-term commitments to these firms.

• A) True
• B) False
• C)
• D)

When S&W Company integrates successive stages of production and distribution under a single ownership and attains coordination and conflict management through regular organizational channels, it is using a corporate VMS.

• A) True
• B) False
• C)
• D)

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

• A) False
• B) True
• C)
• D)

The most effective consumer promotion tool is sampling.

• A) False
• B) True
• C)
• D)

The three characteristics for advertising appeals are: meaningful, believable, and distinctive.

• A) False
• B) True
• C)
• D)

Advertisers look for media that showcase the product effectively. Fashions are best advertised on television, and automobile performance is best in color magazines.

• A) True
• B) False
• C)
• D)

A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, even at the expense of the system as a whole. No channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict.

• A) False
• B) True
• C)
• D)

A producer must regularly check each channel member’s performance against standards. These standards typically include sales quotas, average cash flow levels, customer delivery time, treatment of damaged and lost goods, and services to the customer.

• A) False
• B) True
• C)
• D)

Informative ads are used primarily in the growth stage of the product life cycle.

• A) True
• B) False
• C)
• D)

Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company’s supply chain.

• A) True
• B) False
• C)
• D)

If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers.

• A) False
• B) True
• C)
• D)

The key to managing inventory is to balance the costs of carrying larger inventories against resulting sales and profits.

• A) True
• B) False
• C)
• D)

The franchise organization is the second most common type of contractual relationship wherein a channel member called a franchiser links several stages of the production-distribution process.

• A) False
• B) True
• C)
• D)

Members of the marketing channel perform many key functions, such as helping to complete information, promotion, contact, matching, and negotiation transactions. They can also help to fulfill the completed transactions like e-procurement, financing, and risk-taking.

• A) False
• B) True
• C)
• D)