MKGT1 Exam 4

Transaction and Communication Functions include

- selling - buying - marketing communications

Facilitating Functions include

-financing -market research -risk-taking

what are the five physical distribution functions

-reducing transactions -creating assortments -transportation and storage -breaking bulk -accumulating bulk and sorting

things to consider for the right balance between control and flexibility in a channel

-the type of products involves -cost issues among the various options -strength of belief in the accuracy of the sales forecast -likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel

Other type of intermediary contribution within a channel is the performance of

-transaction AND -communication functions

What to consider regarding warehouse operations?

-where warehouses should be located to minimize transportation costs -the optimal size of a warehouse -how many warehouse to have

Speed Transportation Modes

1. Air 2. Motor 3. Rail 4. Pipeline 5. Water

Intermediaries 2 Principal Categories

1. Merchant Intermediaries 2. Agent Intermediaries

Flexibility of Delivery Transportation Modes

1. Motor 2. Rail 3. Air 4. Water 5. Pipeline

Reliability Transportation Modes

1. Pipeline 2. Air 3. Motor 4. Rail 5. Water

After an order is processed, if there is a stock-out then __________ replenishment processes are triggered.

After an order is processed, if there is a stock-out then INBOUND replenishment processes are triggered.

an inventory management system designed to balance levels of overstock and stock-out in an effort to reduce warehousing costs

Just-In-Time (JIT) Inventory Control Systems

______-__-_____ inventory control systems ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay.

Just-In-Time inventory control systems ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay.

Selecting a(n) _____________ approach involves deciding on the level of distribution intensity, the required control and adaptability over the channel, and the priority channel functions.

Selecting a(n) CHANNEL approach involves deciding on the level of distribution intensity, the required control and adaptability over the channel, and the priority channel functions.

True or False: Value networks are fluid and complex.

True

intermediaries who do not take title to the product (implies ownership of merchandise and control of the terms of sale) during the exchange process

agent intermediaries

Which legal issue related to supply chain management exists when a supplier limits the number of retail outlets within a certain geographic area? a tying contract an exclusive deal a slotting allowance an exclusive territory

an exclusive territory

a shipping method used by manufacturers to better match quantities needed in terms of the space constraints and inventory turnover requirements of their buyers

breaking bulk

-lead player in such situations may be referred to as -the lead plater in an administered vertical marketing system (VMS)

channel captain (channel leader)

disagreements among channel members that can result in their relationship becoming strained or even falling apart

channel conflict

a system of interdependent relationships among a set of organizations that facilitates the exchange process

channel of distribution

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

channel power

Sakshi works for a major home goods distributor. The company decides to buy a transportation company to move its product from its own manufacturing facility to the consumer. This is an example of a(n) ________Blank vertical marketing system. private intermediated corporate administered contractual

corporate

the investment of a channel member in backward or forward vertical integration by buying controlling interest in other intermediaries

corporate vertical marketing system (VMS)

An artisan creates handmade soaps and sells them at her local farmers market. What channel of distribution does she use? virtual network physical distribution direct channel exclusive distribution indirect channel

direct channel

________Blank means the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, which is common in the electronic channel. Channel integration Disintermediation Reducing transactions Outsourcing Creating assortments

disintermediation

the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries

disintermediation

the communication and sale of products or services to consumers over the internet

electronic retailing (e-retailing or e-tailing)

when a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products

exclusive dealing

When an intermediary is protected from having to compete with others while selling a producer's goods, it has a(n) Blank______. Multiple choice question. bounded distributor exclusive territory exclusive deal tying contract

exclusive territory

the protection of an intermediary from having to compete with other selling a producer's goods and services

exclusive territory

goods whose sales rely on the consumer seeing the product, feeling an immediate want and being able to purchase now

impulse goods

online platforms connecting buyers and sellers within particular industries

market makers

intermediaries frequently receive incentives from manufacturers to participate in helping promote products in the channel

marketing communication

intermediaries who take title to the product during the exchange process

merchant intermediaries

a big part of how an intermediary can add value is by reducing the risk of others in the channel

risk taking

intermediaries provide a sales force to represent a manufactuer's product line

selling

-the process of managing the aspects of the supply chain -goal is coordination of these value-adding flows among the entities in a way that maximizes overall value delivered and profit realized

supply chain management

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 is called a Blank______. network organization virtual organization supply chain value network

value network

vertically aligned networks behaving and performing as a unified system

vertical marketing system (VMS)

Carlos' firm manufactures custom-made furniture that is sold through various furniture retailers. Carlos sources the wood he needs from various lumber manufacturers and uses a distributor to get his products to the retail stores for sale. The suppliers of the wood, the distributor, and the retail stores are all part of a Blank______. supply chain logistics channel marketing channel supplier network

supply chain

The coordination of value-adding flows among the entities in a channel of distribution in a way that maximizes overall value delivered and profit realized is called Blank______. partner relationship management materials requirement planning enterprise resource planning supply chain management

supply chain management

the greatest success in e-retailing has been in products where ____________ and ______ are key drivers in the purchase decision

the greatest success in e-retailing has been in products where CONVENIECNE and PRICE are key drivers in the purchase decision

True or false: Often, customers drive the ultimate choice a marketing manager makes about a channel, as flexibility or control differentially impact the value proposition.

true

a formal requirement by the seller of an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy

tying contract

an overarching system of formal and informal relationships within which the firm participates to procure, transforms, and enhance and ultimately supply its offerings in final form within a market space

value network

Sources of Channel Power

-Coercive Power -Reward Power -Expert Power -Referent Power -Legitimate Power

What is the purpose of a channel of distribution? -It directs the flow of all of a firm's promotional efforts so that the communication message is clear. -It directs the distribution efforts of a firm's suppliers to ensure optimal delivery time frames are met. -It makes possible the purpose of transferring possession of a product from producer to consumer or business user. -It brings all of a firm's retailers together in terms of what they will charge for the firm's product.

-It makes possible the purpose of transferring possession of a product from producer to consumer or business user.

three pieces of legislation provide much of the basis for legislation impacting supply chains?

-Sherman Antitrust Act -Clayton Act -Federal Trade Commission Act

Reputation for Delivering Undamaged Goods Transportation Modes

1. Pipeline 2. Water 3. Air 4. Motor 5. Rail

Selecting Channel Approaches Issues for Consideration:

1. What is the level of distribution intensity sought within the channel? 2. How much control and adaptability are required over the channel and its activities? 3. What are the priority channel functions that require investment?

Exclusive dealing lessens competition if it

1. accounts for substantial market share 2. involves a substantial dollar amount 3. involves a big supplier and smaller intermediary, which sets up a case for coercion.

VMS can be set up in 3 different ways

1. corporate systems 2. contractual systems 3. administered systems

3 Key Legal Issues related to Distribution

1. exclusive dealing 2. exclusive territories 3. tying contracts

At is essence in a VMS a channel memeber:

1. owns the others 2. has contracts with them or 3. simply forces cooperation through sheer clout within the channel

Low Cost Transportation Modes

1. pipeline 2. water 3. rail 4. motor 5. air

what does shipping "gross" of any product mean in physical distribution?

12 dozen (144)

A _____ strategy means that many of the intensive promotional activities take place from the manufacturer downward through the channel of distribution.

A PUSH strategy means that many of the intensive promotional activities take place from the manufacturer downward through the channel of distribution.

Dedicated B2B websites that facilitate the exchange of products and services are called __________ _________

Dedicated B2B websites that facilitate the exchange of products and services are called MARKET MAKERS

____________ issues are critical in shipping food products such as produce

LOGISTICS issues are critical in shipping food products such as produce

Can a producer always grant an intermediary an exclusive territory for sales purposes?

Not necessarily

_________logistics starts with production and ends with receipt of the finished good by the end-user consumer or business user.

OUTBOUND logistics starts with production and ends with receipt of the finished good by the end-user consumer or business user.

______ is the point of contact in the supply chain with the consumer of the product. Production Promotion Retailing Logistics

Retailing

-when the channel control of a vertical marketing system is determined by the size and power of the one of its channel members -the sheer size and power of the one of the channel members place it in a position of channel control

administered VMS

________Blank intermediaries perform a variety of physical distribution, transaction and communication, and facilitating functions that make exchange possible. They do not take title to the product. Wholesalers Agent Supplier Retailer Distributor

agent

both wholesalers and retailers perform an important function by evaluating products and ultimately simplifying purchase decision by creating assortments

buying

consists of interdependent entities that are aligned for the purpose of transferring possession of a product from producer to consumer or business user. -a channel is a system of interdependent relationships among a set of organizations that facilitates the exchange process

channel of distribution

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

the binding of otherwise independent entities in the vertical marketing system legally through contractual agreements

contractual VMS

The greatest success in electronic retailing has been in products where Blank______ are key drivers in the purchase decision. convenience and price convenience and distribution promotion and price promotion and distribution

convenience and price

frequently purchased, relatively low-cost products that customers have little interest in seeking new information about or considering other product options

convenience goods

A(n) ________Blank vertical marketing system creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity. administered contractual disintermediated corporate distributive

corporate

how has the internet increased the efficiency of B2B relationships through

dedicated B2B sites that facilitate the exchange of products and services

a channel member's utilization of its unique competencies and knowledge to influence others in the channel

expert power

activities that help fulfill completed transactions and also maintain the viability of the channel relationships

facilitating functions

without readily available credit at various stages in the distirbution process, many channels could not operate

financing

-a contractual relationship between a franchisor, who is the grantor of the franchise, and the franchisee, who is the independent entity entering into an agreement to perform at the standards required by the franchisor -most famous example of contractual VMS agreement

franchise organization

An example of a contractual vertical marketing system is retailing. stocking. wholesaling. e-tailing. franchising.

franchising

Unresolved channel conflict can result not only in an uncooperative and inefficient channel, but it can also ultimately impact end-user consumers through increased supply. increased demand. intensive distribution. selective distribution. higher prices.

higher prices

in an ideal supply chain, materials of all kinds are handled as ___ times as possible

in an ideal supply chain, materials of all kinds are handled as FEW times as possible

in corporate VMS, a channel member has invested in backward or forward ____________ __________________ by buying a controlling interest in other intermediaries

in corporate VMS, a channel member has invested in backward or forward VERITCAL INTEGRATION by buying a controlling interest in other intermediaries

a distribution strategy designed to saturate every possible intermediary, especially retailers.

intensive distribution

a channel member's ability to influence other members based on contracts or other formal agreements

legitimate power

because intermediaries are closer to end-user consumers and business users than manufacturers they are in the ideal position to gather information about the market and consumer trends

market research

A virtual organization is otherwise known as a ________Blank organization. tall network flat bureaucratic boundaryless

network

a strategy utilizing a variety of channels in a customer's shopping experience, including research before a purchase. These channels include physical stores, online stores, mobile stores, mobile app stores, telephone sales, and any other method of transacting with a customer

omnichannel retailing

the process of a product's movement from production by the manufacturer to purchase by the end-user consumer

outbound logistics

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

physical distribution (logistics)

promotional and distribution strategy in which the focus is on stimulating demand within the channel or distribution

push strategy

critical step in getting product moving through the supply chain

receiving and properly processing customer orders

Introducing an intermediary into a channel may contribute to ________Blank that are necessary to complete an exchange. disintermediations transportation and storage functions facilitating functions reducing transactions creating assortments

reducing transactions

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________Blank power within the channel. coercive expert referent legitimate reward

referent

a channel member's ability to influence other members based on respect, admiration, or reverence

referent power

A group of local farmers in Charlotte sells their produce in the market every day. They band together to gain cost and operating economies of scale in the market for selling their produce. This is an example of a customer community. disintermediation. pull strategy. vertical integration. retailer cooperative.

retailer cooperative

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 to the supply chain

retailing

a channel member's ability to coerce vendors by offering them incentives

reward power

when an item is not in stock

stock-out

________Blank is one of the most commonly provided channel intermediary activities. Franchising Storage Showrooming Outsourcing Disintermediation

storage

-a complex logistics network characterized by high levels of coordination and integration among its members -all organizations involved in supplying a firm, the members of its channels of distribution and its end-user consumers and business users

supply chain

A(n) ________Blank represents all organizations involved in providing a firm, the members of its channels of distribution, and its end-user consumers and business users. direct channel virtual channel value chain supply chain indirect channel

supply chain