Marketing Chapter 11

Good Egg Co. buys eggs from local farmers, sorts them into different grades, and then packages them to sell to larger grocers. Good Egg Co. is performing the distribution function of ______________.

Accumulating bulk

In a(n) ________________, the sheer size and power of one of the channel members places it in a position of channel control

Administered VMS

It is possible that a(n) ________________ can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation. An example of this is the relationship between Walmart and Procter & Gamble.

Administered VMS

_____________ perform a variety of physical distribution, transaction and communication, and facilitating functions that make exchange possible.

Agent intermediaries

A channel of distribution consists of interdependent entities that are _________________.

Aligned for the purpose of transferring possession of a product from producer to consumer or business user

The role of retailing is to _________________.

All of these

A manufacturer employing a pull strategy would engage in _____________.

Both contests and mass media

Rock Solid is a company that manufactures different mixes of mortar for building projects. Recently it decided to outsource its warehousing in order to focus more on making great mortar mixes. This is an example of _________________.

Both network organization and virtual organization

One example of a push strategy is _______________.

Both sales contests and paying a slotting allowance

XYZ intermediary works with large consumer product manufacturers as well as small local retailers. The company buys large quantities of products from the manufacturers and sells them in smaller quantities to retailers. XYZ is performing the distribution function of _________________.

Breaking Bulk

In an administered VMS, the sheer size and power of one of the channel members places it in a position of channel control. The lead player in such situations may be referred to as the ______________, signifying its ability to control many aspects of that channel's operations.

Channel captain

Ultimately, ________________ can occur in which channel members experience disagreements and their relationship can become strained or fall apart.

Channel conflict

_____________ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

Channel power

______________ involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

Coercive power

___________ is not a source of channel power.

Consumer Power

A(n) __________________ consists of otherwise independent entities that are bound together legally through contractual agreement.

Contractual VMS

A(n) ________________ creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity.

Corporate VMS

In ________________ a channel member has invested in backward or forward vertical integration by buying a controlling interest in other intermediaries.

Corporate VMS

Nadia works for a major soda distributor. Recently the company has begun to discuss buying a transportation company to move its product from its own manufacturing facility to the consumer. This is an example of _______________.

Corporate VMS

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut __________ and maximize ____________ every step of the way to market.

Costs, process efficiencies

Intermediaries engage in ________________ when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumer

Creating assortments

A ________________ has no intermediaries and operates strictly from producer to end-user consumer or business user.

Direct channel

_____________ is the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, and is common in the electronic channel.

Disintermediation

___________________ is a software application designed to integrate information related to logistics processes throughout the organization.

Enterprise resource planning (ERP) system

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, _______________ has occurred

Exclusive dealing

Voss water deals only with a single wholesaler in every state. The wholesaler has to deal with specific hotels and restaurants. Voss employs a(n) ______________ strategy.

Exclusive distribution

_______________ is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing.

Exclusive distribution

Because it is extremely expensive to open a restaurant in Hyde Park, ROB bar is the only bar that stocks a specific type of beer. This is an example of a(n) _______________

Exclusive territory

________________ may take the form of sharing important product remembering.

Expert power

Financing, market research, risk-taking, and other services are considered to be _________________________.

Facilitating functions

A producer can always grant an intermediary an exclusive territory for sales purposes.

False

A push strategy doesn't mean a manufacturer would refrain from engaging in any channel incentives, but rather that the incentives would likely be greatly reduced versus a pull strategy.

False

Despite profound changes, retail remains a small, insignificant part of the supply chain and consumer marketing.

False

In an ideal supply chain, materials of all kinds are handled as many times as possible.

False

In reality, cutting out intermediaries is always a guarantee of saving consumers money.

False

Many organizations are beginning to consider their customers—both end users and within a channel— as less important members of a value network.

False

Unresolved channel conflict will never result in an uncooperative and inefficient channel, but it may impact end-user consumers through inferior products, spotty inventory, and higher prices.

False

Entrepreneur magazine reports that ________________ remain the highest-potential start-up and growth mechanism for small-business owners, and are an effective way to expand a distribution channel quickly and efficiently.

Franchise organizations

___________ are appropriate for intensive distribution, as their sales rely on the consumer seeing the product, feeling an immediate want, and being able to purchase now.

Impulse goods

_________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Inbound logistics

A(n) _________________ contains one or more intermediary levels.

Indirect channel

Unresolved channel conflict can result not only in an uncooperative and inefficient channel, but it can also ultimately impact end-user consumers through ________________.

Inferior products, Spotty inventory, and Higher prices

When the objective is to obtain maximum product exposure throughout the channel, a(n) ________________ strategy is designed to saturate every possible intermediary and especially retailers.

Intensive distribution

Distribution strategies can be __________________.

Intensive, Selective, and Exclusive

To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay, firms utilize sophisticated ________________.

Just in time (JIT) inventory control systems

______________ results from contracts such as franchise agreements or other formal agreements.

Legitimate power

__________ take title to the product.

Merchant intermediaries

The _____________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

Network organization

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider all of the following except _______________.

None of these

Mistakes easily occur at the ______________ step of moving through the supply chain.

Order processing

_______________ is the process that starts with production and ends with the delivery of the final product.

Outbound logistics

The goal of the ________________ is to share resources, especially remembering-based resources, to effect optimally profitable relationships between two channel members.

Partner relationship management (PRM) strategies

Channel intermediaries enhance utilities by providing a wide array of specific functions including ________________.

Physical distribution functions, Transaction and communication functions, and Facilitating functions

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ___________________.

Producers and consumers

A manufacturer employing a(n) ________________ focuses much of its promotional investment on the end-user consumer.

Pull Strategy

____________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution.

Push strategy

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________________ within the channel.

Referent Power

Local Farmers of Tampa Bay is a group of more than 100 farmers who have banded together to gain cost and operating economies of scale. The Local Farmers group is an example of a ______ .

Retailer cooperative

By combining efforts, ____________ gain advantages through enhanced buying and distribution power, which allow them to better compete with supermarket chains than if the stores were buying separately.

Retailer cooperatives

_____________, in whatever form, is the point of contact in the supply chain with the consumer of the product.

Retailing

XYZ Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. XYZ collects the cartridges and then returns them to the producer for recycling. This is an example of __________.

Reverse logistics

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ______________ in the form of writing big orders.

Reward power

Famous Al's purchases different fruits from local farmers and then sells them to local restaurants and retailers. If the fruits rot before Al sells them he takes the loss. As an intermediary, Famous Al's is performing the function of ________________.

Risk-taking

Jenn has recently decided to take a value network approach to create a competitive advantage over her competitors. She is trying this because ___________________.

She frees up internal resources, Her firm can be more nimble in addressing external uncontrollable opportunities and threats, and She has an advantage over firms that have high costs associated with performing many of the value chain functions

Consumers engage in limited search for items like fashion clothing, home furnishings, and appliances. These are examples of ______________ goods.

Shopping goods

If the item is not in stock, referred to as a(n) _______________, then inbound replenishment processes are triggered

Stock out

A(n) ________________ represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users.

Supply chain

Keisha is in charge of overseeing the flow of activities among several entities for Walmart. Her main objective is to coordinate these value-adding activities in a way that adds value. She is in charge of _______________.

Supply chain management

Producers make money by pushing finished goods out the door and into the channel of distribution. As such, the most commonly provided channel intermediary activities are ______________

Transportation and storage functions

A channel is a system of interdependent relationships among a set of organizations that facilitates the exchange process.

True

Channel intermediaries enhance utilities by providing a wide array of specific functions.

True

Exclusive dealing may be legal if the parties show exclusivity is essential for strategic reasons, such as to maintain product image.

True

In evaluating a website, one of the key measures is its "stickiness," which refers to the length of time visitors remain at the site.

True

Often, channel members adopt an approach of utilizing their unique competencies to influence others in the channel.

True

Physical distribution, or logistics, is the integrated process of moving input materials to the producer, in- process inventory through the firm, and finished goods out of the firm through the channel of distribution.

True

Receiving and properly processing customer orders is a critical step in getting product moving through the supply chain.

True

The degree of push versus pull used is fundamental in framing the channel structure and relationships that are likely to optimize a product's success.

True

The primary advantage of the television home shopping retail format is the ability to show and demonstrate the product.

True

The value chain portrays a mixture of primary and support activities utilized by an organization to design, produce, market, deliver, and support its products.

True

When marketing planning, a good channel decision is the most important within the entire planning process because it does leads to market advantage over competitors.

True

While popular with consumers, vending machines are not particularly profitable.

True

Office Supplies Etc. can purchase printers at 5 percent above cost from a certain supplier, but it must also agree to purchase ink and paper from the same supplier for the next 12 months. This is an example of a(n) __________.

Tying Contract

If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, a(n) ______________ is in place.

Tying contract

The _____________ is thought of as an overarching system of formal and informal relationships, within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space.

Value network

_____ consists of vertically aligned networks behaving and performing as a unified system.

Vertical Marketing System (VMS)

XYZ is a Cleveland-based wholesaler that retailers contract for varying degrees of exclusive dealings with a particular wholesaler. XYZ is an example of a ________________.

Wholesaler cooperative

Intensive distribution is typically associated with low-cost ________________.

convenience goods

Within a particular product category, the variety and assortment of products carried by retailers tends to be very similar.

false

Introducing one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange.

reducing transactions

_____________ is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption and is an essential component of the supply chain

retailing