4.08 Study Guide - 1
Objective 4.08: Acquire foundational knowledge of channel management to understand its role in marketing.
1. The use of __________________________ results from their greater efficiency in making goods available to
target markets.
2. ___________________________________________ – Occurs between different levels of the same channel.
3. Channel Functions:
 Information
 _______________________________________________
 Contact
 Matching
 Negotiation
 Funding
 _______________________________________________
 Physical distribution
 Payment options
4. Key Channel Tasks:
 Marketing
 Packaging
 _______________________________________________
 Storage
 _______________________________________________
 Merchandising
 _______________________________________________
5. Evaluating Channel Members
 Produces must evaluate intermediaries performance against such standards as:
 _______________________________________________
 Average inventory levels
 _______________________________________________
 Treatment of damaged and lost goods
 Cooperation in promotional and training programs.
6. There are a variety of _________________________that may get involved before a product gets from the
original producer to the final user.
7. _____________________________ provide value to producers because they often have expertise in certain
areas that producers do not have.
8. Intermediaries that sell to final user are __________________________ in displaying, merchandising, and
providing convenient shopping locations and hours for customers.
9. Laws that govern channel management:
 _______________________________________________
 _______________________________________________
 _______________________________________________
 _ ______________________________________________
10. To avoid ____________________ problems and penalties, a formal antitrust compliance program should be
developed and maintained.
11. ___________________________--such as price discrimination, a refusal to do business with a given
customer or supplier (often referred to as a "refusal to deal"), certain customer and territorial restrictions,
mergers of rivals, tying arrangements and conspiracies among competitors, some of which will be discussed
in greater detail below.
12. ____________________________ - If two or more competitors conspire to fix prices or methods of price
computation at a certain level, then such conduct per se is illegal. Or "conscious parallelism," by which
4.08 Study Guide - 2
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companies follow the acts of a dominant market leader, by changing prices or sales terms, even in the
absence of a formal agreement to fix prices among competitors.
____________________________ - Most price discrimination issues arise under the Robinson-Patman Act
when a seller offers its otherwise uniform products at different prices due to size or geographic location of
the buyer.
____________________________ - Manufacturers may attempt to implement a variety of restraints
affecting distribution channels that trigger antitrust considerations. The three most common forms are
tying, exclusive dealing, territorial and customer restrictions.
_____________________ is an arrangement by which the sale or lease of Product X, which the buyer wants,
is conditioned on the buyer also purchasing Product Y, which the buyer does not necessarily want.
_____________________ involves a situation in which a buyer contracts to purchase all of its requirements
for a given product exclusively from a particular seller.
________________________________________ usually involve attempts by sellers to divide the targeted
market into distinct territorial segments and grant geographic or customer exclusivity to a given buyer.
____________________________ are those placed by a manufacturer on a distributor or by a wholesaler on
a retailer. These are restraints on trade that develop between firms at different levels in the production and
distribution network and are relevant when building distribution channels.
_____________________________ are practices by firms operating at the same level in the distribution
chain and generally doing business in the same markets. The laws are designed to protect against large
portions of market strength and market share being concentrated in the hands of one or only a few firms
The penalties for failure to obey the federal ___________________________ can be severe, and in the past
have included criminal sanctions, injunctive relief, damages for lost profits, and in certain cases triple
damages.
A ___________________________ is a market created through the sale or resale of branded products
through unauthorized dealers or distributors. These are real products showing up in places in which the firm
never expected them to be sold – and it happens all the time.
In _____________________ selling, bag the merchandise with care. Products such as glassware may require
individual wrapping before bagging.
Following up with your _______________________ after the sale is an important part of providing good
customer service.
________________________________ (Enterprising Resource Software) aims to integrate all departments
and functions across a company or channels.
Building a single _________________________________ that serves the needs of people in finance, human
resources, and the warehouse is a huge task.
Each ________________________ typically has its own software and computer system.
Channel member employees have to change the way they used to keep records _______________________
(no change-large barrier).
Channel member employees have to enter information into the system in a ____________________
manner.
Channel member employees may resist using the ____________________________________.
______________________________________ get bogged down in expensive customizing software for each
channel member.