BUSML 3150 Chapter 10
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in its territory
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered vertical marketing system (VMS)
What are the four steps to designing marketing channels, in the correct order?
Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives
Which of the following statements is correct regarding supply chains and the value delivery network?
A company's channel decisions directly impact all other marketing decisions.
Distribution channels are complex ___________ in which people and companies interact to accomplish individual, company, and channel goals.
Behavioral systems
Which of the following statements is true regarding channel organization?
Channel members are dependent on each other for the overall success of the channel.
When selecting intermediaries, which is NOT one of the main criteria companies should evaluate?
Company size
A(n) ________ consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone.
Contractual VMS
The __________ concept recognizes that improved logistics requires teamwork in the form of close working relationships across functional areas inside the company and across various organizations in the supply chain.
Integrated supply chain management
Which of the following statements regarding marketing logistics is true?
Logistics should provide a targeted level of customer service at the least cost.
Marketing channels perform many key functions. Which of the following is NOT one of those key functions?
Manufacturing
___________ begins with analyzing consumer needs and setting channel objectives.
Marketing channel design
Which of the following 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.
____________ addresses not only outbound logistics, but also inbound logistics and reverse logistics.
Marketing logistics
Which statement is true about international distribution channels?
Much of the retailing in other countries is done by small, independent retailers.
In managing its channels, a company must convince suppliers and distributors that they can succeed better by working together as ____________.
Part of a cohesive value delivery system
Most companies today see their intermediaries as first-line customers and focus on ________ to forge long-term relationships with channel members.
Partner relationship management
Other functions of marketing channel members include helping to fulfill the completed transactions by offering _____________.
Physical distribution, financing, and risk taking
Which of the following statements is true regarding the selection of qualified channel members?
Producers vary in their ability to attract qualified marketing intermediaries.
In terms of multimodal transportation, the term piggyback refers to the use of which types of transportation?
Rail and trucks
When evaluating channel member performance, companies use standards such as ________, treatment of damaged and lost goods, cooperation in company promotion and training programs, and services to the customer.
Sales quotas, average inventory levels, customer delivery time
Most producers use intermediaries by forging a marketing channel (or distribution channel) to bring products and services to the consumer or business user. They do this because of _________, specialization, and scale of operation.
The intermediaries' contacts and experience
A direct marketing channel has ________ intermediary level(s).
Zero
Channels often involve long-term commitments, and companies have many alternatives. Each alternative should be evaluated against three general criteria. What are these?
Economic, control, and adaptability
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is called ________.
Full-line forcing
What is a vertical marketing system (VMS)?
A channel arrangement in which producers, wholesalers, and retailers act as a unified system
When designing marketing channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are ________ distribution.
Intensive, exclusive, and selective
What are the four major functions of logistics?
Warehousing, inventory management, transportation, and logistics information management
The four major functions of marketing logistics are ____________.
Warehousing, inventory management, transportation, and logistics information management