chap 12 marketing

Which two of the following are examples of direct marketing channels?

Home Shopping Network Harry and David food and gift catalog

The presence of intermediaries suggests which type of marketing channel?

Indirect

________ add value by performing transactional, logistical, and facilitating functions.

Intermediaries

Amazon and Orbitz are both part of _______ marketing channels.

Internet

Opentable.com is a reservation mechanism for restaurants. It uses the Internet to allow consumers to reserve tables in many places throughout the United States. It is an example of

Internet marketing channels.

The factors affecting channel choices and management include which two of the following?

Target market coverage - Buyer requirements.

Which of the following statements regarding supply chains is most accurate?

The best supply chain is the one that is consistent with the needs of the customer segment being served and complements a company's marketing strategy.

An example of backward integration is

a retailer that owns the manufacturing plant making the products it sells.

A sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users is known as

a supply chain.

A marketing channel intermediary that purchases merchandise for resale at retail outlets is engaging in ________ function.

a transactional

Logistics involves

activities that focus on getting the right products to the right place at the right time at the lowest possible cost.

Each intermediary in the marketing channel

adds value in terms of the functions it performs.

The three major types of vertical marketing systems are contractual, corporate, and

administered

Understanding the customer is the first step in

aligning a supply chain with marketing strategy.

Any intermediary with legal authority to act on behalf of the manufacturer but that does not take title to products is referred to as

an agent.

A middleman is

any intermediary between a manufacturer and end-user markets.

Kroger supermarkets owns facilities that manufacturer many of the Kroger-branded products it sells in its stores, which is an example of

backward integration.

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, ________ arises.

channel conflict

One aspect of supply chain customer service is ________, the two-way link between the buyer and seller that helps in monitoring service and anticipating future needs.

communication

Supply chain customer service depends on ________, which can be improved by implementing practices like sending status reports on orders.

communication

A retailer sells to

consumers

Under a ________ marketing system, independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.

contractual vertical

Wholesaler-sponsored voluntary chains and retailer-sponsored cooperatives are two types of ________ marketing systems.

contractual vertical

A(n) ________ channel allows ultimate consumers to deal with producers instead of intermediaries for purchases.

direct

When an individual attempts to sell her handcrafted jewelry at an art fair, this is known as a(n) ________ channel of distribution.

direct

Apple has opened many retail stores to sell the various technology products it produces, which is an example of

forward integration.

Ralph Lauren manufactures clothes and now also owns retail stores selling these clothes. This is an example of

forward integration.

When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as

forward integration.

Ford licenses its dealers to sell cars subject to specific sales and service conditions under its

franchise agreement.

A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called

franchising.

Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer's brands, is referred to as

horizontal conflict.

channel has intermediaries between the producer and consumers that perform various channel functions.

indirect

Intensive distribution means that a manufacturer places its product in _______ outlets.

many

Direct and indirect are types of

marketing channels.

Manufacturers often use intermediaries to distribute their products because intermediaries _____.

minimize the number of necessary sales contacts

The difference between an agent and a wholesaler is that the latter

own the products it sells.

Dell chose ______ when it decided to sells its products through Walmart, Best Buy, and Staples, in addition to its direct channel.

selective distribution

A retailer-sponsored cooperative refers to

small, independent retailers forming an organization that operates a wholesale facility cooperatively.

Firms that buy products from manufacturers and resell them to retailers are known as

wholesalers.

Match each factor affecting channel choice with appropriate considerations for the factor.

-target market coverage= Distribution density levels-buyer requirements= customer needs for informatio, convenience, variety, and services-profitability= distribution,adverting and selling costs

It is estimated that logistics costs including transportation, distribution center operations, and order processing represent ________ of the retail price that you pay for a new car.

25 to 30%

Dell's choice of a responsive supply chain allows its to offer its customers which of the following?

A wide variety of products Customizable products Rapid delivery

Which of the following is a type of vertical conflict?

Disintermediation

Which of the following terms refers to the number of stores in a geographic area in which products are placed?

Distribution density

Which of the following are degrees of distribution density considered by manufacturers?

Exclusive distribution Selective distribution

Which of the following are functions performed by intermediaries in a marketing channel?

Facilitating functions Transactional functions Logistical functions

Which of the following are steps when aligning your supply chain with marketing strategy?

Harmonize the supply chain with the marketing strategy. Understand the supply chain. Understand the customer.

In which way do intermediaries in the marketing channel enhance the value of a product for consumers?

Intermediaries provide various forms of utility: time, place, form, and possession.

Disintermediation is a vertical conflict between the channel partners where one _______ another to buy or sell a product ________.

bypasses; directly

A marketing ________ consists of those individuals or firms involved in the process of making products available to consumers or industrial users.

channel

Choice of a marketing ______ by a producer might involve examining a number of factors, including coverage of the target market, buyer requirements, and profitability.

channel

Choosing a marketing ______ is a critical decision for a producer because not only does it provide a link to its buyers but also the means through which it implements various elements of its marketing strategy.

channel

When franchisees like car dealerships believe they are located too close to each other, ______ might arise.

horizontal channel conflict

An independent car dealership became angry with Goodyear Tire Company when it began selling its tires at Sears, Walmart, and Sam's Clubs. This is an example of

horizontal channel conflict.

The objective of logistics management in a customer-driven supply chain is to ________ while delivering ________.

minimize logistics costs; maximum customer service

One difference between intensive and exclusive distribution is that the latter uses ________ retailer(s) in a specified geographical area.

one

Though similar, supply chain management focuses on ________ while logistics management focuses on ________.

supply and distribution firms; flows of materials and products

Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for ________ percent of the retail price you pay for a new car.

25 to 30

________ makes possible the flow of goods from a producer, through intermediaries, to a buyer.

A marketing channel

In the context of a supply chain, Blank 1 of 2 Blank 2 of 2 is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. (Enter one word in each blank.)

Blank 1: customer Blank 2: service

Which three of the following are the elements of dependability, one of the factors of supply chain customer service?

Consistent lead time Safe delivery Complete delivery

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Corporate vertical marketing systems can incorporate both forward and backward integration.

________, as it pertains to a supply chain, is the ability to satisfy users in terms of time, dependability, communication, and convenience.

Customer service

________ channels allow consumers to buy products by interacting with advertising media instead of a face-to-face meeting with a salesperson.

Direct marketing

Which two of the following are characteristic of multichannel marketing?

It is a blending of different communication and delivery channels. The goal is to attract, retain, and build relationships with buyers who use various channels.

________ costs like transportation and order processing of sales are a large part, estimated at 25 to 30 percent, of the retail cost of an automobile.

Logistics

Which two of these are benefits associated with reverse logistics?

Lowered operating costs for companies Reduced waste in landfills

Which of the following are true about supply chains?

Managers must often make trade-offs between efficiency and responsiveness of their supply chains. Choice of a supply chain should reflect customer needs.

Which of the following should be considered as part of total logistics cost?

Materials handling and warehousing Order processing

Which two of the following combine to describe the objective of logistics management for a customer-driven supply chain?

Minimize logistics costs Maximize customer service

Vendor-managed inventory does which of the following?

Minimizes effort for the business buyer

marketing is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. (Enter one word in the blank.)

Multichannel

A quick response delivery system increases the efficiency of which of the following processes?

Reordering

Which of the following refers specifically to an intermediary that sells to consumers?

Retailer

Which of the following degrees of distribution weds some of the market coverage benefits of intensive distribution to the control over resale evident with exclusive distribution?

Selective distribution

________ are typically designed to be either responsive or efficient, depending upon a firm's strategy to meet customer requirements.

Supply chains

Which of the following functions is performed by intermediaries when they buy and sell products or services?

Transactional

conflict occurs between different levels in a marketing channel, such as between a wholesaler and a retailer. (one word)

Vertical

Disintermediation involves

a channel member bypassing another member to sell or buy product directly.

Franchising involves

a contractual arrangement between a parent company and another entity that is allowed to operate a business under an established name.

The Schwan's Company of Marshall, Minnesota, the largest direct-to-home provider of foods in the United States, uses route sales representatives who sell from refrigerated trucks. This particular method of distribution is referred to as

a direct channel.

Five Guys restaurant chain originated in Virginia, and started franchising its concept in many U.S. states. It enters into a formal agreement with each franchisee, creating a(n)

contractual vertical marketing system.

Which of the following are types of vertical marketing systems?

corporate administered contractual

A manufacturer that also owns distribution centers and retail outlets is an example of a _______ marketing system.

corporate vertical

Estee Lauder both manufactures MAC cosmetic products and owns the MAC retail stores. This is an example of a ________ marketing system.

corporate vertical

Marketing channels help ________ for consumers through the four utilities: time, place, form, and possession.

create value

The typical order cycle includes all of the following elements except which?

cross-docking

One aspect of supply chain customer service is ________, the consistency of replenishment.

dependability

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the United States. What method of distribution best describes the method used by pharmaceutical companies in this example?

dual distribution

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is known as

dual distribution.

GE sells its large appliances directly to home and apartment builders but uses retail stores like Lowe's to sell to consumers, in a strategy known as

dual distribution.

Which two best describe effective choices for designing a supply chain that meets customer requirements and aligns with strategy?

efficient responsive

When Martha Stewart's products are found only at Macy's, it is an example of ________ distribution.

exclusive

Extending credit to customers is an example of a ________ function.

facilitating

For business products, a(n) ________ performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing.

industrial distributor

The marketing channel for business products sometimes features a(n) ________, which in many ways is like a wholesaler in consumer channels.

industrial distributor

The 1 million ATM machines owned by Visa are an example of Visa's strategy to provide a(n) _______ distribution of cash.

intensive

The best supply chain

is consistent with customer needs.

The combination of a firm's supplier network and its marketing channel is known as

its supply chain.

deals with decisions needed to move a product from the source of raw materials to consumption. (one word)

logistic

The combination of the inbound flow of raw materials and parts and the outbound flow of finished products is known as

logistics management.

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirement is known as

logistics management.

Those activities that focus on getting right amount of the right products to the right place at the right time at the lowest possible cost are known as

logistics.

Using electronic data and inventory systems to make the process of reordering and receiving products as simple as possible is known as a(n)

quick response delivery system.

Which two of the following refer to the time between ordering an item and when it is received and ready for use or sale (choose 2).

replenishment time order cycle

Dell's target market desires rapid delivery and a wide variety of customizable products, so the company has opted for a(n) ________ supply chain.

responsive

In terms of target market coverage, density refers to the number of ________ in a geographical area.

retail stores

An intermediary who sells to consumers is called a

retailer

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is known as

reverse logistics.

The integration and organization of information and logistics activities across firms to create and deliver products that deliver value to the consumer is known as

supply chain management.

IBM used its artificial intelligence supercomputer Watson to improve its own

supply chain.

In the context of a supply chain, customer service refers to

the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

One or more intermediaries between ________ defines an indirect channel of distribution.

the manufacturer and the consumer

Reverse logistics is

the process of reclaiming recyclable and reusable materials for repair, redistribution, or disposal.

In vendor-managed inventory improves convenience by having ________ determine the product amount and assortment required and automatically delivery appropriate items.

the supplier

Replenishment time refers to

the time between ordering an item and when it is available for use or sale.

Marketing channels help create value for consumers through four utilities. These utilities are

time, place, form, and possession.

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling are included in

total logistics cost.

The choice of a supply chain follows from a clearly defined marketing strategy and involves three steps: (1) ________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.

understand the customer

Though uninformed consumers may not appreciate the extra markups from channel members, the four utilities each provide methods of

value creation by channel intermediaries.

Tylenol and Advil are two manufacturers of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, fever, and general pain. Both manufacturers seek distribution of their products through pharmacies such as Walgreens and CVS. These companies seek channels and intermediaries that will satisfy a buyer's desire for

variety.

marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. (Enter one word in the blank.)

vertical

The two types of channel conflict are

vertical and horizontal.

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as

vertical marketing systems.

A firm that would typically be called a(n) ________ in consumer markets would perform the same functions as a distributor in business markets.

wholesaler