MKTG 310 CH 15 Review
What two statements are true regarding multichannel marketing?
Multichannel marketing is a blending of different communication and delivery channels. The goal of multichannel marketing is to attract, retain, and build relationships with buyers who use various channels.
________ are typically designed to be either responsive or efficient, depending upon a firm's strategy to meet customer requirements.
Supply chains
The best choice of supply chain is one that is in line with the company's marketing strategy and ______.
is consistent with the needs of the customer segment being served
Walmart achieves efficiency in its supply chain by ______.
keeping most items for sale stocked in its stores
A retailer is an intermediary that sells to ______.
consumers
What are the two types of marketing channels?
direct and indirect
Logistics management includes which two of these?
flow of raw materials and parts flow of finished products
Strategic channel alliances are common in ________, where the creation of marketing channel relationships is expensive and time consuming.
global marketing
The management at Target stores was angry with Goodyear Tire Company about its decision to also sell its brand through Walmart. This is an example of ______.
horizontal channel conflict
When franchisees like car dealerships believe they are located too close to each other, ______ might arise.
horizontal channel conflict
In the context of a supply chain, customer ___ is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
service
A vendor-managed supply system relates to what customer service factor of a supply chain?
convenience
One aspect of supply chain customer service is ________, meaning there should be a minimum of effort on the part of the buyer in doing business with the seller.
convenience
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
The margins earned for each channel member and for the channel as a whole determines ______.
profitability
The two types of channel conflict are ______.
vertical and horizontal
Logistics involves ______.
activities that focus on getting the right products to the right place at the right time at the lowest possible cost
In logistics, flow refers to ______.
activities to move a products from the source of raw materials to consumption
Each intermediary in the marketing channel ______.
adds value in terms of the functions it performs
For business products, a(n) ________ might serve as an independent selling arm for producers, representing them to industrial users.
agent
The most indirect channel is used when there are many small producers and many small retailers; in this channel structure a(n) ________ is used to coordinate a large supply of the product.
agent
What channel intermediary does not take title to products, but instead brings a seller and buyer together?
agent
Manufacturers often use intermediaries to distribute their products because intermediaries ______.
create value for buyers
The practice of unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for delivery to a particular store is referred to as ______.
cross-docking
When one firm's marketing channel is used to sell another firm's products it is known as a(n) ______.
strategic channel alliance
What statement is TRUE about marketing channels?
Indirect channels are longer than direct ones.
_______ add value by performing transactional, logistical, and facilitating functions.
Intermediaries
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.
Which two are true of merchandise in the cross-docking process?
It is warehoused only for a short period of time, if at all. It is unloaded from the supplier, sorted for an individual store, and reloaded onto trucks quickly.
What is the purpose of a marketing channel?
It makes possible the flow of products and services from a producer, through intermediaries, to a buyer.
Which statement is true regarding digital marketing channels?
Digital marketing channels tend to be lower in cost compared to traditional intermediaries.
________ channels are employed for business products when buyers are large and well-defined, the sales effort requires extensive negotiations, and the products are of high unit value and require hands-on expertise for installation or use.
Direct
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 two laws are most important to consider in channel management?
The Sherman Act The Clayton Act
Compared to marketing channels for consumer products, business channels exhibit what characteristics? (Select all that apply)
The channel tends to rely on one intermediary or none at all. The channel is typically shorter.
What two intermediaries have legal authority to act on behalf of the manufacturer?
agent broker
Amazon and Orbitz are both part of _______ marketing channels.
digital
Why might an efficient supply chain, rather than a responsive supply chain, fail to meet Dell's target market desires for a wide variety of customizable products?
An efficient supply chain might emphasize economies of scale that would reduce the variety of configurations offered.
If a manufacturer is trying to determine which channel and intermediaries they prefer to use for selling a product, what factors should they definitely consider? (Select all that apply)
Which will provide the best coverage of the target market? Which will best satisfy the buying requirements of the target market? Which will be the most profitable?
Disintermediation involves ______.
a channel member bypassing another member to sell or buy product directly
Opentable.com is a reservation mechanism for restaurants. It uses the Internet to allow consumers to reserve tables in many establishments throughout the United States. It is an example of ______.
a digital marketing channel
When a wood furniture manufacturer has his unique shop attached to his plant, and sells from that space, as well as via catalog and the Internet, it is an example of ______.
a direct channel
The individuals or firms involved in the process of making products available to consumers or industrial users are referred to as ______.
a marketing channel
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
How can a firm can leverage its multichannel marketing?
by allowing customers to pick up online orders, or return non-store purchases, at a nearby store
In what ways does a channel captain manage potential conflict? (Select all that apply)
by using expertise by using economic influence by using a legitimate right
Disintermediation is a vertical conflict between the channel partners where one channel member _______ another to buy or sell a product ________.
bypasses; directly
In logistics, managers attempt to drive down costs but can go no further than the level where the firm ______.
can still deliver expected customer service
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
In determining a firm's ______, it is important to consider the interests of buyers, such as variety or pre- or post-sale services.
channel choice
Using a channel captain with expertise, or economic influence can help to manage ______.
channel conflict
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
What are the three major types of vertical marketing systems?
contractual administered corporate
In the context of a supply chain, customer service is the ability of logistics management to satisfy users based on what factors? (Select all that apply)
convenience time dependability
Select the interests of consumers that are important to consider in channel choice. (Select all that apply)
convenience variety information
The combination of successive stages of production and distribution under a single ownership defines which vertical marketing system?
corporate
A manufacturer that also owns distribution centers and retail outlets is an example of a _______ marketing system.
corporate vertical
Estee Lauder manufactures MAC cosmetic products and also owns the MAC retail stores. This is an example of a ________ marketing system.
corporate vertical
In general, producers can choose whomever they wish distribute to their products so long as the choice does not _____.
create an unfair competitive situation
Marketing channels help ________ for consumers through the four utilities: time, place, form, and possession.
create value
One aspect of supply chain customer service is ________, the consistency of replenishment.
dependability
A(n) ________ channel allows ultimate consumers to deal with producers instead of intermediaries for purchases.
direct
When an individual attempts to sell their handcrafted jewelry at an art fair, this is is an example of a(n) ________ channel of distribution
direct
What marketing channel allows consumers to buy products by interacting with various print or electronic media instead of a face-to-face meeting with a salesperson?
direct to consumer marketing
What term refers to the number of stores in a geographic area in which products are placed?
distribution density
As intermediaries, a key feature of agents and brokers is that they ______.
do not actually take title to a product, but bring together a seller and a buyer
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
What two practices are legal, but sometimes viewed as anticompetitive and possibly in violation of the Clayton Act?
dual distribution vertical integration
Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods, so the company has opted for a(n) ________ supply chain.
efficient
Supply chain customer service depends on convenience, which can be improved by implementing what two practices?
ensuring products are available at many outlets arranging all necessary details, such as transportation
Typically chosen for specialty products and services, _______ distribution allows only one retailer in a specific geographic region to carry the firm's products.
exclusive
The Clayton Act specifically prohibits which two practices that might arise in channel management?
exclusive dealing tying arrangements
Providing financing, grading products, and providing marketing information and research are ________ functions of intermediaries.
facilitating
Ralph Lauren manufactures clothes and now also owns retail stores selling these clothes. This is an example of ______.
forward integration
Ford licenses its dealers to sell cars subject to specific sales and service conditions under its ______.
franchise agreement
A(n)___ channel has intermediaries between the producer and consumers that perform various channel functions.
indirect
In a(n) ______ channel, there are one or more intermediaries between the manufacturer and the consumer.
indirect
Toyota sells its vehicles through retailers known as dealerships, which means it uses a(n) ________ channel of distribution.
indirect
When someone attempts to sell a home via a realtor, it is an example of a(n) _______ channel of distribution.
indirect
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 longest channel for business products includes which intermediaries? (Select all that apply)
industrial user agent producer industrial distributor
The highest level of distribution density in which products and services are placed in as many outlets as possible, is known as ___ distribution.
intensive
The over 1 million ATM machines owned by Visa are an example of Visa's strategy to provide a(n) _______ distribution of cash.
intensive
A current emphasis in supply chain management is to reduce order cycle time so that ______.
inventory levels of customers can be minimized
A business channel is characterized by the fact that ______.
it tends to be shorter than consumer channels
Electronic intermediaries are incapable of performing elements of the ________ function, particularly for some products, so these tasks remain with traditional intermediaries or the producer.
logistical
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
The goal of supply chain management is to integrate and organize what two activities across the various firms in a supply chain in order to create and deliver products and services to provide value to customers?
logistics information
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
What are two benefits associated with reverse logistics?
lowered operating costs for companies reduced waste in landfills
Business firms that use a direct channel ______.
maintain their own salesforce
What two things combine to describe the objective of logistics management for a customer-driven supply chain?
maximize customer service minimize logistics costs
The objective of logistics management in a customer-driven supply chain is to ________ while delivering ________.
minimize logistics costs; maximum customer service
An advantage of ________ is that catalogs can serve a shopping tools for online purchasing, as they do for store purchasing.
multichannel marketing
What is the correct term for marketing that integrates opportunities by using both traditional intermediaries and electronic ones?
multichannel marketing
A strategic channel alliance involves ______.
one firm's marketing channel being used to sell another firm's products
In exclusive distribution, how many retailers are used for a specified geographical area?
only one
What are two examples of a direct to consumer marketing channel?
ordering something from the Harry and David food and gift catalog buying something from the Home Shopping Network
Wholesalers are intermediaries who sell to ______.
other intermediaries
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
Many logistics costs are interrelated; for example, increasing inventory costs with additional warehouses should result in ______.
reduced transportation costs
A quick response delivery system increases the efficiency of which process?
reordering
What two terms reflect the time between ordering an item and when it is received and ready for use or sale?
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
What intermediary sells specifically to consumers?
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 ______ logistics.
reverse
Which three are elements of dependability, one of the factors of supply chain customer service?
safe delivery consistent lead time complete delivery
Dell chose ______ distribution when it decided to sell its products through Walmart, Best Buy, and Staples, in addition to its direct channel.
selective
What are the three degrees of distribution density considered by manufacturers?
selective exclusive intensive
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
What are three types of franchise arrangements?
service-sponsored retail manufacturer-sponsored retail manufacturer-sponsored wholesale
In administered vertical marketing systems, coordination is achieved through one channel member influencing another, often based on ______.
size
When Starbucks coffee is distributed to local supermarkets by PepsiCo's distribution network, it is an example of a(n) ______.
strategic channel alliance
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 ______.
supply chain
The integration and organization of information and logistics activities across firms in a supply chain in order to create and deliver products and services to provide value to customers is referred to as ______ management.
supply chain
A corporate vertical marketing system is described as ______.
the combination of successive stages of production and distribution under a single ownership
An administered vertical marketing system is described as ______.
the coordination of production and distribution through the size and influence of one channel member
In choosing a supply chain, it is important to make sure that what the supply chain is capable of doing well is consistent with what two things?
the firm's marketing strategy the targeted customer's needs
In a direct channel, what two entities deal directly with each other?
the producer and the ultimate consumer
Replenishment time refers to ______.
the time between ordering an item and when it is available for use or sale
Having a product when you want it is the premise behind ______ utility; having a product where you want it is the premise behind ______ utility.
time; place
When designing a supply chain that meets customer requirements and aligns with strategy, what are the two goals that firms try to achieve?
to be more efficient to be more responsive
Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling are included in ______.
total logistics cost
What are the three functions performed by intermediaries in a marketing channel?
transactional functions facilitating functions logistical functions
What are the steps involved when aligning a supply chain with a marketing strategy?
understand the supply chain understand the customer harmonize the supply chain with the marketing strategy
When the supplier determines the product amount and assortment a customer needs and automatically delivers the appropriate items, it is known as a _______ inventory system.
vendor-managed
Professionally managed and centrally coordinated marketing channels that are designed to achieve channel economies and maximize marketing impact are known as ______.
vertical marketing systems
A(n) _______ buys products from manufacturers and resells them to retailers.
wholesaler
A(n) ________ is most commonly added to an indirect channel for low-cost products where the retailer demands smaller quantities.
wholesaler
When it comes to selecting a marketing channel, what is the critical dimension of profitability?
willingness of channel members to share channel costs
