BCOR350 Ch 12 Marketing Channels

Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of what VMS?

administered

What does the process of designing marketing channels start with?

analyzing consumer needs

What is true regarding marketing channel design?

channel alternatives should be evaluated against economic, control, and adaptability criteria

Channel members' performance should be evaluated against the standards of customer delivery time, treatment of damaged and lost goods, sales quotas, average inventory levels, but not _______________.

channel management

What is true regarding the functions channel members perform?

channel members create greater efficiencies than manufacturers could achieve on their own

Distribution channels are more than simple collections of firms tied together by various flows. Which is NOT a characteristic of distribution channels?

channel systems stand still, restricting formation of new intermediary systems

Channel members should be selected on the basis of years in business, reputation, cooperativeness, growth and profit record, but not ____________.

competitiveness

Conventional Distribution Channel

consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

The franchise organization is the most common type of _________ vertical marketing system.

contractual

Historically, ___________ have lacked leadership and power, often resulting in damaging conflict and poor performance.

conventional distribution channels

In 2001, Apple opened its first Apple stores in the U.S. These stores were owned and operated by Apple. This is an example of which type of VMS?

corporate

Distribution Center

designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of _________.

disintermediation

What is true regarding international distribution channels?

due to logistics costs in China, the majority of companies can only access affluent areas of major cities

Some sellers require that dealers not handle competitor's products. This strategy is called __________.

exclusive dealing

_______________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.

full-line forcing

Exclusive Distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

Direct Marketing Channel

has no intermediary levels

Companies today are placing greater emphasis on logistics for several reasons which include___________________, but not that limited product variety has created problems for logistics management.

improvements in information technology have created opportunities which did not exist before, improved logistics can yield tremendous cost savings to both a company and its customers, logistics affects the environment and a firm's environmental sustainability efforts, companies can gain a powerful competitive advantage by using improved logistics to give customers better service or lower prices

Third-Party Logistics Provider

independent logistics provider that performs any or all of the functions required to get a client's product to market

Cross-functional teamwork within the company, building logistics partnerships, and third party logistics are all important elements of ____________.

integrated logistics management

The concept of ________________ recognizes that providing better customer service and trimming distribution costs require teamwork.

integrated logistics management

What is true regarding a just-in-time logistics system?

just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations

From the producer's point of view, a greater number of levels of marketing channel means _____________.

less control and greater channel complexity

Supply Chain Management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

What is a reason that producers use marketing channels and channel intermediaries?

marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers

One key function of channel members is ______________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

matching

Companies now use ____________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate channel partners.

partner relationship management

Marketing Logistics

planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

In making products and services available to consumers, channel members add value. Key functions performed by the marketing channels include all of the following except ___________.

pricing

CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of _____________ channel members.

selecting

Marketing Channel Management

selecting, managing, and motivating individual channel members and evaluating their performance over time

Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products _____________.

selectivity

Marketing Channel

set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

Intensive Distribution

stocking the product in as many outlets as possible

When setting channel objectives, companies should state the objectives in terms of ______________.

targeted levels of customer service

Disintermediation

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

What is true regarding marketing logistics?

the goal of marketing logistics should be to provide a targeted level of customer service at the least cost

Integrated Logistics Management

the logistic concept that emphasizes teamwork, both inside the company and among all the marketing channel organization, to maximize the performance of the entire distribution system

The length of a channel is determined by _______________.

the number of intermediary levels

After the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, and _____________.

the responsibilities of channel members

What is true regarding marketing channel behavior and design?

the success of individual channel members depends on the overall channel's success

Selective Distribution

the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products

The company, suppliers, distributors, and customers who "partner" with one another to improve the performance of the entire system make up the _____________.

value delivery network

Using ____________, the customer shares real-time data on sales and current inventory levels with the supplier. Th supplier then takes full responsibility for managing inventories and deliveries.

vendor-managed inventory

Contractual VMS

vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

Corporate VMS

vertical marketing system that combines successive stages of production and distribution under single ownership

What are the four major functions of logistics?

warehousing, inventory management, transportation, and logistics information management

Multichannel Distribution System

when a single firm sets up two or more marketing channels to reach one or more customer segments

What is an example of horizontal channel conflict?

a Ford dealer complaining that another Ford dealer is advertising in their territory

Horizontal Marketing System

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

Indirect Marketing Channel

a channel containing one or more intermediary levels

Administered VMS

a vertical marketing system in which independent firms at different levels of production and distribution through the size and power of one of the parties