Chapter 11,12,13,14

Which of the following describes a vertical marketing system?

A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels

Marketing systems

A conventional marketing system is a multiple-level distribution channel in which channel members work independently of one another. A vertical marketing system (VMS) is a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels. In an administered VMS, a type of vertical marketing system, members remain independent but voluntarily work together because of the power of a single channel member. A horizontal marketing system is an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose. previous

Firm powers

A firm has economic power when it has the ability to control resources. A firm such as a franchiser has legitimate power if it has legal authority to call the shots. A firm has reward or coercive power if it engages in exclusive distribution. A firm has reward or coercive power if it has the ability to give profitable products to and take them away from the channel intermediaries. previous

Chapter 12

A general merchandise discount store is a retailer that offers a broad assortment of items at low prices with minimal service. A supercenter is a larger store that combines an economy supermarket with other lower-priced merchandise. A category killer is a large specialty store that carries a vast selection of products in its category. A specialty store is a retailer that carries only a few product lines but offers good selection within the lines that it sells.

Chapter 14

A location-based social network integrates sophisticated GPS technology that enables users to alert friends of their exact whereabouts via their mobile phones. A product review site enables people to post stories about their experiences with products and services. A virtual world is a highly engaging digital environment where avatars live and interact with other avatars in real time. A social network is an online platform that allows users to represent themselves via profiles on a website and provide and receive links to other members of the network to share input about common interests.

Chapter 12

A loss experienced by a retailer due to shoplifting, employee theft, and damage to merchandise is shrinkage. An experiential shopper is a shopper who shops because it satisfies the shopper's experiential needs. Customer profiling is the act of tailoring the level of customer service based on a customer's perceived ability to pay. An automatic reordering system is a retail ordering system that is automatically activated when inventories reach a certain level.

Which of the following best describes a conventional marketing system?

A multiple-level distribution channel in which channel members work independently of one another

Chapter 13

A promotion budgeting method in which an organization matches whatever competitors are spending is the competitive-parity method. The percentage-of-sales method is a method for promotion budgeting that is based either on a certain percentage of last year's sales or on estimates of the present year's sales. Bottom-up budgeting techniques allocate the promotion budget based on identifying promotion goals and allocating enough money to accomplish them. The objective-task method is a promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotion efforts it will take to meet those goals.

Chapter 13

A sales promotion where the manufacturer and the retailer share the cost is co-op advertising. A trade promotion is a promotion that focuses on members of the "trade," which include distribution channel members. A rebate is a sales promotion that allows the customer to recover part of the product's cost from the manufacturer. A frequency program is a consumer sales promotion that offers a discount or free product for multiple purchases over time.

Chapter 14

A salesperson reviews the points of agreement with the customer in the closing step of the selling process. The salesperson may offer to help write up the order, ask whether the buyer wants this model or that one, or note that the buyer will lose out if the order is not placed now. Handling objections involves a salesperson's clarifying and overcoming any customer objections to buying. Follow-up includes a salesperson's following up after sale to ensure customer satisfaction and repeat business. Prospecting is the first step, where a salesperson identifies qualified potential customers.

Chapter 13

Advertising is nonpersonal communication from an identified sponsor using the mass media. A case allowance is a discount to the retailer or wholesaler based on the volume of product ordered. Public relations describes a variety of communication activities that seek to create and maintain a positive image of an organization and its products among the various publics, including customers, government officials, and shareholders. The hierarchy of effects is a series of steps prospective customers move through, from initial awareness of a product to brand loyalty.

More transportation

Air is the mode of transport best suited for shipping fresh-cut flowers. Airfreight is ideal when speed is needed or distant markets have to be reached. Among the most frequently airfreighted products are perishables—such as fresh fish or cut flowers—and high-value, low-bulk items like jewelry. Water transportation is appropriate for non-perishable items like automobiles. Trucks are appropriate for products that require refrigeration, like locally grown strawberries. Railroads are one of the most cost-effective modes for shipping large amounts of bulk products—like grain and steel—over long distances.

What is the supply chain?

All the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer.

Chapter 12

An interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise is direct selling. A party plan system is a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally buy if they were alone. A pyramid scheme, a form of direct selling, is an illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public. B2C e-commerce is an online exchange between companies and individual customers.

Chapter 13

Awareness is the first step a prospective customer moves through in the hierarchy of effects. The second step a prospective customer moves through in the hierarchy of effects is knowledge. The third step a prospective customer moves through in the hierarchy of effects is desire. The last step a prospective customer moves through in the hierarchy of effects is loyalty.

Chapter 12

Best Buy is an example of a category killer. A category killer carries a large selection of items in one or a few product lines. 7-Eleven is an example of a convenience store. BJ's is an example of a warehouse club. Kmart is an example of a general merchandise discount store.

What is the term for the dependence of producers, wholesalers, and retailers on one another for success?

Channel cooperation

Channel2

Channel cooperation is the dependence of producers, wholesalers, and retailers on one another for success. Channel power is the ability of members to influence, control, and lead the entire channel based on one or more sources of power. The channel leader or channel captain is the dominant firm that controls the channel. Channel conflict is incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer's distribution strategy

Channel2

Channel cooperation is the dependence of producers, wholesalers, and retailers on one another for success. Channel power is the ability of members to influence, control, and lead the entire channel based on one or more sources of power. The channel leader or channel captain is the dominant firm that controls the channel. Channel conflict is incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer's distribution strategy.

__________ are sales agents who receive goods, primarily agricultural products, on consignment.

Commission merchants

Merchant types

Commission merchants are sales agents who receive goods, primarily agricultural products, on consignment. Manufacturers' reps are independent salespeople who carry several lines of noncompeting goods. Selling agents market a whole product line or one manufacturer's total output. Merchandise brokers are intermediaries that facilitate transactions in markets in which there are lots of small buyers and sellers.

Chapter 14

Contributing considerable expertise in the form of product demonstrations, recommendations for complex equipment, and setup of machinery is the role of the technical specialist. The order taker's job is to process transactions the customer initiates. The missionary salesperson's job is to promote the firm and stimulate clients to buy. The order getter's job is to develop long-term relationships with particular customers to generate new sales.

Chapter 14 What is corporate identity?

Corporate identity is materials such as logos, brochures, building design, and stationery that communicate an image of the organization. Media relations is a PR activity aimed at developing close relationships with the media. Publicity is unpaid communication about an organization that appears in the mass media. A public relations campaign is a coordinated effort to communicate with one or more of the firm's publics.

Chapter 13

Decoding is the process whereby a receiver assigns meaning to a message. Encoding is the process of translating an idea into a form of communication that conveys the desired meaning. The message is the actual content that goes from the source to a receiver. Feedback is a reaction to a message that helps marketers gauge the effectiveness of the message.

Distribution channels

Developing distribution tactics is the last step in the distribution planning process. The first step is develop distribution objectives. The second step is evaluate internal and external environmental influences. The third step is choose a distribution strategy.

Chapter 12

Direct selling is an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise. A party plan system is a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally buy if they were alone. A pyramid scheme, a form of direct selling, is an illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public. B2C e-commerce is an online exchange between companies and individual customers. previous

Chapter 14

Direct-response advertising is a direct marketing approach that allows the consumer to respond to a message by immediately contacting the provider to ask questions or order the product. An infomercial is a half-hour- or hour-long commercial that resembles a talk show but is actually a sales pitch. A catalog is a collection of products offered for sale in book form, usually consisting of product descriptions accompanied by photos of the items. Direct mail is a brochure or pamphlet that offers a specific good or service at one point in time.

disintermediation

Disintermediation (of the distribution channel) is the process in which companies are eliminating many traditional intermediaries because they find that they don't add enough value to the distribution channel. Knowledge management refers to a comprehensive approach that collects, organizes, stores, and retrieves a firm's information assets. Risk-taking functions are functions of intermediaries that make the purchase process easier for customers and manufacturers. Creating assortments means providing a variety of products in one location to meet the needs of buyers.

What is the meaning of breaking bulk?

Dividing larger quantities of goods into smaller lots in order to meet the needs of buyers

A firm has ________ power when it has the ability to control resources.

Economic

chapter 13

Evaluating the advertising is the last step in developing an advertising campaign. The next-to-last step is choose the media type(s) and media schedule. The fourth step is pretest what the ads will say. The third step is create the ads.

Chapter 12

Factory outlet stores carry a limited selection from a single manufacturer. Examples include Gap Outlet and Coach Outlet. Supermarkets carry a large selection of food items and a limited selection of general merchandise. Box stores carry a limited selection of food items, many of which are store brands. Department stores carry a large selection of many product lines.

intermediaries

Firms that handle the flow of information from the manufacturer to the retailer or business user are wholesaling intermediaries. Independent intermediaries are channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers. Merchant wholesalers are intermediaries that buy goods from manufacturers and sell to retailers and other business-to-business customers. Merchandise agents (brokers) are channel intermediaries that provide services in exchange for commissions but never take title to the product.

Chapter 14 Follow-up is the __________ step in the creative selling process.

Follow-up is the last step in the creative selling process. The next-to-last step is the close. The fifth step is handle objectives. The fourth step is the sales presentation.

For which of the following products is air transportation best suited?

Fresh-cut flowers

Chapter 14

Hard-sell tactics often occur with transactional selling, an approach that focuses on making an immediate sale with little concern for developing a long-term relationship with the customer. Relationship selling is the process by which a salesperson secures, develops, and maintains long-term relationships with profitable customers. Team selling may consist of a salesperson, a technical specialist, and others who work together to develop products and programs that satisfy customers' needs. Personal selling occurs when a company representative interacts directly with a customer or prospective customer to communicate about a good or service. Transaction selling is one type of personal selling.

Chapter 12

Hypermarkets are retailers that are several times larger than other stores and offer virtually everything from grocery items to electronics. Off-price retailers buy excess merchandise from well-known manufacturers and pass the savings on to customers. Box stores are food stores that have a limited selection of items, few brands per item, and few refrigerated items. Variety stores carry a variety of inexpensive items.

Chapter 12

Idea marketing is a strategy that seeks to gain market share for a concept, philosophy, belief, or issue. Place marketing is any activity that seeks to attract new businesses, residents, or visitors to a town, state, country, or some other site. A party-plan system is a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally buy if they were alone. A service is an act, effort, or performance exchanged from producer to user without ownership rights.

Chapter 14

In the closing step of the selling process, the salesperson reviews the points of agreement with the customer. The salesperson may offer to help write up the order, ask whether the buyer wants this model or that one, or note that the buyer will lose out if the order is not placed now. Handling objections involves a salesperson's clarifying and overcoming any customer objections to buying. Follow-up includes a salesperson's following up after sale to ensure customer satisfaction and repeat business. Prospecting is the first step, where a salesperson identifies qualified potential customers.

Chapter 13

In the hierarchy of effects, examples of the desire step include status appeals, sex appeals, and celebrity endorsements. Examples of the knowledge step include brochures, infomercials, public relations, and personal selling. Examples of the awareness step include repetitive advertising, slogans and jingles, and publicity stunts. Examples of the purchase step include point-of-purchase displays, coupons, contests, and samples.

Chapter 14

In the prospecting and qualifying step of the selling process, a salesperson qualifies a customer on the basis of financial ability, volume of business, special needs, location, and growth possibilities. This process is to identify the good customers and screen out the poor ones. In the preapproach step, the salesperson has already qualified the customer and learns as much as possible about the potential customer. In the approach step, the salesperson meets the customer for the first time. In the closing step, a salesperson asks for an order from the customer. This happens after demonstrating the product and handling any objections from the customer. previous

Chapter 14

Input measures are efforts that go into selling, such as the number and type of sales calls, expense account management, and a variety of nonselling activities. Publicity is unpaid communication about an organization that appears in the mass media. Output measures are the results of a saleperson's efforts. Internal PR is PR activities aimed at employees of an organization. previous

Chapter 13

Integrated marketing communication (IMC) is the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to target audiences. The promotion mix is the total set of all products a firm offers for sale. A multichannel promotional strategy is a marketing communicating strategy combining traditional advertising, sales promotion, and public relations activities with online buzz-building activities. The communication model is the process whereby meaning is transferred from a source to a receiver.

Chapter 12

Invariability is not one of the four characteristics of a service. The four characteristics of a service include intangibility, perishability, inseparability, and variability. Intangibility means customers can't see, touch, or smell good service. Perishability refers to the characteristics of a service that make it impossible to store for later use. Inseparability means that it is impossible to divide the production of a service from the consumption of that service.

Which of the following describes the just-in-time inventory technique?

Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed.

What is the term for the inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed?

Just-in-time inventory

Inventory

Just-in-time inventory is inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed. A stock-out is a zero-inventory situation resulting in lost sales and customer dissatisfaction. Inventory control is the set of activities that ensures goods are always available to meet customers' demands. Order processing is the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door.

Chapter 14

Lobbying means talking with and providing information to government officials to persuade them to vote a certain way on pending legislation. Crisis management is the process of managing a company's reputation when some negative event threatens the organization's image. Investor relations activities focus on communications to those whose financial support is critical. Sponsorships are PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company's contribution. previous

Distribution

Marketers use intensive distribution for products such as chewing gum, soft drinks, and milk that consumers quickly consume and must replace frequently. Marketers use exclusive distribution to sell a product, typically with a high price tag, through a single outlet in a particular region. Marketers use selective distribution when demand is so large that exclusive distribution is inadequate but selling costs, service requirements, or other factors make intensive distribution a poor fit. While products may be distributed in mass quantities, this is not a form of distribution.

Chapter 12

Merchandise breadth is the number of different product lines available. Merchandise mix is the total set of all products offered for sale by a retailer. Merchandise assortment is the range of products a store sells. Merchandise depth is the variety of choices available for each specific product line.

Chapter 12

Network marketing is a system in which a master distributor recruits other people to become distributors, sells the company's product to the recruits, and receives a commission on all the merchandise sold by the people recruited. Virtual experiential marketing is an online marketing strategy that uses enhancements, including colors, graphics, layout and design, interactive videos, contests, games, and giveaways, to engage experiential shoppers online. Nonstore retailing is any method used to complete an exchange with a product end user that does not require a customer visit to a store. A pop-up store is a temporary retail space that a company erects to build buzz for its products.

Chapter 14

Personal selling occurs when a company representative interacts directly with a customer or prospective customer to communicate about a good or service. Direct marketing refers to any direct communication to a consumer or business recipient designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product. Telemarketing is the use of the telephone to sell directly to consumers and business customers. Publicity is unpaid communication about an organization that appears in the mass media.

Chapter 12

Point-of-sale (POS) systems are retail systems that collect sales data and connect directly into the store's inventory-control system. Perpetual inventory unit control systems are retail computer systems that keep a running total on sales, returns, transfers to other stores, and so on. Automatic reordering systems are retail ordering systems that are automatically triggered when inventories reach a certain level. Retail borrowing is the consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchased.

Chapter 13

Product advertising is advertising messages that promote the activities, personality, or point of view of an organization or company. Corporate advertising promotes the company as a whole instead of a firm's individual products. Advocacy advertising is advertising where an organization seeks to influence public opinion on an issue because it has some stake in the outcome. Public service advertisements (PSAs) are advertising run by the media for not-for-profit organizations or to champion a particular cause without charge.

Chapter 13

Product sampling is the distribution of free trial-size versions of a product to consumers. A merchandising allowance is a reimbursement to the retailer for in-store support of the product. A trade show is an event at which many companies set up elaborate exhibits to show their products, give away samples, distribute product literature, and work to create new business contacts. A point-of-purchase (POP) display is an in-store display or sign.

Chapter 14

Prospect and qualify is the first step in the creative selling process. The second step is the preapproach. The third step is the approach. The fourth step is the sales presentation.

Chapter 14

Public relations (PR) is the communication function that seeks to build good relationships with an organization's consumers, stockholders, legislators, and other stakeholders in the organization. Publicity is unpaid communication about an organization that gets media exposure. A press release is information that an organization distributes to the media intended to win publicity. Crisis management is the process of managing a company's reputation when some negative event threatens the organization's image.

Chapter 12

Retailers that are several times larger than other stores and offer virtually everything from grocery items to electronics are known as hypermarkets. Off-price retailers buy excess merchandise from well-known manufacturers and pass the savings on to customers. Box stores are food stores that have a limited selection of items, few brands per item, and few refrigerated items. Variety stores carry a variety of inexpensive items.

Material usage

Reverse logistics is the process of product returns, recycling and material reuse, and waste disposal. Order processing is the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door. Logistics is the process of designing, managing, and improving the movement of products through the supply chain. Transportation is the mode by which products move among channel members

Chapter 14

Social media are Internet-based platforms that allow users to create their own content and share it with others who access these sites. Loyal customers of a brand recruited to communicate and be salespeople with other consumers for a brand about which they care a great deal are known as brand ambassadors or brand evangelists. Social networks are sites used to connect people with other people who have similar backgrounds. Virtual worlds are online, highly engaging digital environments where avatars live and interact with other avatars in real time. previous

What is the purpose of warehousing?

Storing goods in anticipation of sale or transfer to another member of the distribution channel.

Chapter 14

The activity in which a firm "ambushes" consumers with promotional content in places they are not expecting to encounter this kind of activity is guerilla marketing. Ambient advertising is advertising placed where advertising isn't normally seen or hasn't ever been seen. A special event is an activity that is planned and implemented by the PR department. A sponsorship is a PR activity through which companies provide financial support to help fund an event in return for publicized recognition of the company's contribution. previous

Jobbers

The advantage of using drop shippers is that they facilitate transactions for bulky products. Truck jobbers ensure that perishable items are delivered and sold efficiently. Rack jobbers provide merchandising services to retailers. Mail-order wholesalers provide reasonably priced sales options to small organizational customers.

Chapter 14

The approach step in the selling process is the step in which a salesperson meets the customer for the first time. Prospect and qualify is the step in which a salesperson identifies potential customers. Preapproach is the step in which a salesperson learns as much as possible about a prospective customer. The sales presentation is the step in which a salesperson tells the "value story" to the buyer.

Chapter 12

The characteristic of a service that makes it impossible to store for later sale or consumption is perishability. Intangibility is the characteristic of a service that means customers can't see, touch, or smell good service. Variability is the characteristic of a service that means even the same service performed by the same individual for the same customer may vary over time. Inseparability is the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service.

Which of the following describes channel cooperation?

The dependence of producers, wholesalers, and retailers on one another for success

Channel

The distinct categories of intermediaries that populate a channel of distribution are known as channel levels. An industrial distributor buys products from a manufacturer and sells them to business customers. A hybrid marketing system uses a number of different channels and communication methods to serve a target market. A slotting allowance is a fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space.

Chapter 12

The final stop on the distribution path is retailing, in which organizations sell goods and services to consumers for their personal use. Direct selling is an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise. B2C e-commerce is an online exchange between companies and individual customers. Retailtainment is the use of retail strategies that enhance the shopping experience and create excitement, impulse purchases, and an emotional connection with the brand.

Chapter 13

The last step in the promotional planning process is to evaluate the effectiveness of the communication program. The next-to-last step is to design the promotion mix. The third step is to determine and allocate the marketing communication budget. The second step is to establish the communication objectives.

Chapter 12

The marketing strategy that best addresses the service characteristic of perishability is adjusting pricing to influence demand. Providing tangibility through the physical appearance of the facility is a marketing strategy that applies to intangibility. Instituting total quality management programs is a marketing strategy that applies to variability. Training employees about successful service encounters is a marketing strategy that applies to inseparability.

What is inventory turnover?

The number of times a firm's inventory completely cycles through during a defined time frame

Terms

The number of times a firm's inventory completely cycles through during a defined time frame is known as inventory turnover (or inventory turns). Supply chain management is the management of flows among firms in the supply chain to maximize total profitability. An enterprise resource planning (ERP) system is a software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation, and then facilitates sharing of data throughout the firm. Materials handling is the movement of products into, within, and out of warehouses.

Which of the following describes disintermediation (of the distribution channel)?

The process in which companies are eliminating many traditional intermediaries because they find that they don't add enough value to the distribution channel

Chapter 13

The process that turns a concept into an advertisement is the creative strategy. The creative brief is a guideline or blueprint for the marketing communication program that guides the creative process. The advertising appeal is the central idea or theme of an advertising message. The unique selling proposition is an advertising appeal that focuses on one clear reason why a particular product is superior.

Chapter 13

The promotion mix is the major elements of marketer-controlled communication, including advertising, sales promotion, public relations, personal selling, and direct marketing. Noise is anything that interferes with effective communication. The medium is a communication vehicle through which a message is transmitted to a target audience. The communication model is the process whereby meaning is transferred from a source to a receiver.

Warehousing

The purpose of warehousing is storing goods in anticipation of sale or transfer to another member of the distribution channel. Materials handling is the moving of products into, within, and out of warehouses. Transportation is the mode by which products move among channel members. Inventory control includes activities that ensure goods are always available to meet customers' needs.

Chapter 13

The role of Creative Services is to dream up and produce the ads. The role of account planners is to combine research and account strategy to act as the voice of the consumer in creative, effective advertising. The role of media planners is to determine which communication vehicles are the most effective and efficient to deliver the ad. The role of researchers is to collect and analyze information that will help account executives develop a sensible strategy. previous

Chapter 12

The servicescape is the environment in which a service is delivered and where the firm and the customer interact. A gap analysis is a marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred. The service encounter is the interaction between the customer and the service provider. A service is an act, effort, or performance exchanged from producer to user without ownership rights.

Chapter 14

The step in which a salesperson meets the customer for the first time is the approach step of the creative selling process. Prospect and qualify is the step in which a salesperson identifies potential customers. Preapproach is the step in which a salesperson learns as much as possible about a prospective customer. The sales presentation is the step in which a salesperson tells the "value story" to the buyer.

Supply chain info

The supply chain is all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer. Insourcing is a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, and retailers who in some way help move the product to the consumer or business user. Facilitating functions are functions of channel intermediaries that make the purchase process easier for customers and manufacturers.

Chapter 13

User-generated content (UGC) is online consumer comments, opinions, advice and discussions, reviews, photos, images, videos, podcasts, webcasts, and product-related stories available to other consumers. Crowdsourcing is a practice in which firms outsource marketing activities, such as selecting an ad, to a community of users. Corrective advertising is advertising that clarifies or qualifies previous deceptive advertising claims. An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time.

Which of the following describes a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels?

Vertical marketing system

Chapter 12

Warehouse clubs carry a moderate selection of limited product lines with many items in larger-than-normal sizes. Factory outlet stores carry a limited selection from a single manufacturer. Leased departments carry a limited selection of items in a single product line. Supermarkets carry a large selection of food items and a limited selection of general merchandise.

__________ is the storing of goods in anticipation of sale or transfer to another member of the distribution channel.

Warehousing

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

broker

The distinct categories of intermediaries that populate a channel of distribution are known as __________.

channel levels

A(n) __________ is a multiple-level distribution channel in which channel members work independently of one another.

conventional marketing system

At the least a channel of distribution consists of a producer and a(n) ________.

customer

A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________.

direct

The advantage of using __________ is that they facilitate transactions for bulky products.

drop shippers

Marketers use __________ for products such as chewing gum, soft drinks, and milk that consumers quickly consume and must replace frequently.

intensive distribution

The number of times a firm's inventory completely cycles through during a defined time frame is known as __________.

inventory turnover

Developing distribution tactics is the __________ step in the distribution planning process.

last

To a producer of goods, a greater number of channel levels means ________.

less control

Producers benefit from using intermediaries because they ________.

offer greater efficiency in making goods available to target markets

Reverse logistics is __________.

the process of product returns, recycling and material reuse, and waste disposal

Firms that handle the flow of information from the manufacturer to the retailer or business user are __________.

wholesaling intermediaries