Study Plan Chapter 12
Minh's company is experiencing tremendous growth, so he is thinking about contracting with a third-party logistics provider. He's received a lot of input from his staff on the idea. Which of the following statements should he ignore?
A 3PL provider will require substantial oversight from staff.
Which of the following scenarios best demonstrates the marketing channel management function of selecting channel members?
A designer jeweler decides to start manufacturing a line of inexpensive bracelets, but has difficulty convincing jewelry stores to carry the line. So the manufacturer begins selling the product in mainstream department stores.
Hector wants to analyze a direct consumer marketing channel for his business class. Which of the following scenarios should Hector use for his report?
A woman sets up a table at a craft fair to sell wreaths she made from pine cones she gathered in the forest.
Ivan runs an organic farm. He just signed a deal to supply a regional grocery chain, and he needs to contract with a distributor. Ivan's been burned before by getting stuck in long-term contracts that didn't address the unpredictability of farming. How can he avoid making this mistake when looking at potential distribution companies?
He should evaluate them on adaptability criteria.
Juan's boss asked him to do a cost-benefit analysis of various intermodal transportation options to get the company's product to appropriate markets. Which of the following modes should Juan NOT analyze?
Internet
A direct marketing channel is defined as ________.
a marketing channel without an intermediary level
What is the correct definition of exclusive dealing?
a seller requires that dealers not handle competitors' products
Which of the following definitions best fits a multichannel distribution system?
a single firm sets up two or more marketing channels to reach one or more customer segments
Which of the following defines a vertical marketing system?
a structure in which producers, wholesalers, and retailers act as a unified system
Jackson & Jackson is a large consumer product company specializing in home cleaning supplies. It notices an increase in perceived customer value, but cannot raise prices at GrocerMart because GrocerMart insists on maintaining low prices. This best demonstrates a ________ marketing system.
administered vertical
A layer of marketing intermediaries that performs some work in bringing the product to the buyer is known as a ________.
channel level
Which of the following terms is defined as a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer?
channel level
Which of the following is NOT an example of a channel structure in which producers, wholesalers, and retailers act as a unified system?
conventional distribution channel
Which of the following terms is defined as consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits?
conventional distribution channel
Elaine works in a warehouse owned by the manufacturer of the appliances stored there. She regularly communicates with the traffic manager at the manufacturer's trucking subsidiary to coordinate shipping of appliances to the manufacturer's dedicated retail outlets. Which term best describes where Elaine works?
corporate VMS
Nathan's company is an intermediary in the marketing channel for an appliance manufacturer. His company helps the manufacturer complete transactions. Which of the following key functions would Nathan's company NOT perform?
distribution
Cliff works in a large facility that receives goods from several manufacturers. His role is to take orders from retail outlets and arrange efficient shipments of a variety of products to them. Where does Cliff work?
distribution center
Apple turned the retail music business on its head by selling music for the iPod via the Internet on iTunes. In this way, Apple revolutionized its ________.
distribution channel
Le Chic Boutique sells handbags manufactured by Hi-Stile Industries. In the supply chain, what is Le Chic Boutique's relationship to Hi-Stile?
downstream partner
Bree may own a small chain of New Age shops, but she's no business pushover. When a new company asked if she would carry its scented bees wax candles, Bree negotiated a deal where her stores would be the only retailer carrying the product in the tri-state area. What type of arrangement is this?
exclusive dealing
When a producer agrees not to sell to other dealers in an area, this is called ________.
exclusive territorial agreements
Which of the following is NOT a supply chain management activity?
hiring additional employees
Choosing the types of intermediaries, the number of marketing intermediaries, and the responsibilities of channel members are all a part of which step in the channel design process?
identifying major alternatives
Which of the following focuses solely on moving products and materials from suppliers to factories?
inbound logistics
Which concept emphasizes teamwork, both within the company and out, to maximize the performance of the distribution system?
integrated logistics management
Harry loves the American enterprise system, even for the littlest things. He knows that whenever he's craving a Milky Way bar, he can buy one at a gas station, supermarket, discount store, or his neighborhood bodega. Harry seems to be a big fan of ________.
intensive distribution
The Yummy Chocolate Company sells its products in every grocery store, convenient store, and gas station it can. This best demonstrates which of the following types of distribution?
intensive distribution
Which term describes stocking a product in as many outlets as possible?
intensive distribution
Convincing suppliers and distributors that they can succeed better when working together is known as ________.
managing and Motivating channel members
Which of the following is NOT one of a company's major logistic functions?
marketing intermediaries
Peter owns a regional chain of small office product stores. Back in college, his goal was to run a national retail corporation. Now Peter realizes that even though his stores are a relatively small cog in the larger system, they still have a valuable role in the office product market. What role do Peter's stores play?
matching supply and demand
Which of the following terms is defined as a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments?
multichannel distribution system
As a member of an administered VMS, the ZipStep Running Company has certain expectations for placement of its products in retail outlets. ZipStep recently decided to stop supplying products to the Wot-Ever Shoe Shops. What channel evaluation standard likely led to this decision?
promotional participation
The Chippy Snacks Company is taking advantage of an administered VMS to ensure that its products are displayed prominently in grocery stores. What is the basis for the company's ability to gain this advantage over competitors' products?
relative dominance in the marketplace
Marketing channel design calls for all of the following elements EXCEPT ________.
selecting channel members
Trey's company makes surfboards from sustainable wood. They are costly to produce, so his partner thinks they should be sold only in top pro shops. But Trey wants to build awareness about sustainable products, so he thinks they should be sold at a wider range of retailers targeting recreational surfers with high income. Which distribution strategy does Trey recommend?
selective distribution
To improve customer service for his business, Jakob is willing to incur some additional distribution costs. Which of the following strategies would NOT achieve Jakob's goal?
ship in larger lots
Intensive distribution is a method that can be defined as which of the following?
stocking a product in as many outlets as possible
Which of the following is NOT a step in marketing channel management?
terminating channel members
Victoria is the CEO of a startup company that develops wind turbine generators for homes. She is working with her team to set marketing channel objectives in anticipation of getting the turbines into the marketplace. Which of the following likely will have the LEAST impact on the company's channel objectives?
the availability of carbon fiber
Mya is working to develop the marketing logistics for her company's line of furniture. There are many components and factors to consider, but what should be the ultimate goal of Mya's marketing logistics plan?
to earn a profit
After a company has defined its channel objectives, which of the following is most important when identifying a major channel alternative?
types of intermediaries
Which term describes the company, suppliers, distributors, and customers who "partner" with each other to improve the performance of a system?
value delivery network
A1 Foods supplies small stores like the Little Hen chain, and contracts Big Truk to handle distribution. Big Truk makes deliveries once a week. Little Hen owners want Big Truk to deliver three times a week because they don't have, and can't afford, extra storage space. Big Truk refuses because making fewer deliveries is cheaper. What dynamic is occurring?
vertical channel conflict
Zentastic manufactures a line of premium hair products. To control costs, it created a wholesaling company to handle its product line plus others. Zentastic products are only sold in top salons under special contract, to avoid diluting the brand's perceived value. Which of the following describes this marketing dynamic?
vertical marketing system dominated by the producer
Furniture For All sends customer orders to its distribution center in Cincinnati, Ohio, that then sends the couches, beds, and tables to the customers ordered to them. This best demonstrates which of the following logistics functions?
warehousing
A value delivery network is composed of ________.
company, suppliers, distributors, and customers
Which of the following is a vital part of integrated logistics management?
cross-functional teamwork
Munch Factory recently created a new line of whole-grain healthy snacks that are flying off the shelves. Every store wants to carry them. To do so, Munch Factory requires retailers to also carry its older line of trans fat snacks, which has been losing market share. What type of marketing channel is Munch Factory using?
full-line forcing
When producers of a strong brand sell their brand to dealers only if the dealers take some or all of the rest of its line, it is called ________.
full-line forcing
