Ch12 Smartbook

It is estimated that logistics costs including transportation, distribution center operations, and order processing represent ________ of the retail price that you pay for a new car.

25 to 30%

Which of the following are types of contractual vertical marketing systems?

Franchising Wholesaler-sponsored voluntary chains Retailer-sponsored cooperatives

Which of the following is TRUE about marketing channels?

Indirect channels are longer than direct ones.

The highest level of distribution density is known as ______ distribution.

Intensive

Which two of the following are characteristic of multichannel marketing?

The goal is to attract, retain, and build relationships with buyers who use various channels. It is a blending of different communication and delivery channels.

Wholesalers are intermediaries who sell to

other intermediaries.

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 firm that would typically be called a(n) ________ in consumer markets would perform the same functions as a distributor in business markets.

wholesaler

________ makes possible the flow of goods from a producer, through intermediaries, to a buyer.

A marketing channel

Which of the following channel intermediaries do not take title to products, but instead bring a seller and buyer together?

Agent

Which two of the following are intermediaries that have legal authority to act on behalf of the manufacturer?

Agent Broker

Amazon and Orbitz are both part of _______ marketing channels.

Internet

Opentable.com is a reservation mechanism for restaurants. It uses the Internet to allow consumers to reserve tables in many places throughout the United States. It is an example of

Internet marketing channels.

______ deals with decisions needed to move a product from the source of raw materials to consumption. (one word)

Logistics

________ costs like transportation and order processing of sales are a large part, estimated at 25 to 30 percent, of the retail cost of an automobile.

Logistics

Which two of the following combine to describe the objective of logistics management for a customer-driven supply chain?

Minimize logistics costs Maximize customer service

What is the correct term for marketing that exploits opportunities with both traditional intermediaries and online?

Multichannel marketing

Which two of these are benefits associated with reverse logistics?

Reduced waste in landfills Lowered operating costs for companies

A quick response delivery system increases the efficiency of which of the following processes?

Reordering

________ are typically designed to be either responsive or efficient, depending upon a firm's strategy to meet customer requirements.

Supply chains

The inbound portion of the supply chain incorporates which two of the following?

The supplier network The flow of raw materials and parts

________ must be balanced with the four customer service factors of time, dependability, communication, and convenience.

Total logistics costs

Franchising involves

a contractual arrangement between a parent company and another entity that is allowed to operate a business under an established name.

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.

Logistics involves

activities that focus on getting the right products to the right place at the right time at the lowest possible cost.

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

Choosing a marketing ______ is a critical decision for a producer because not only does it provide a link to its buyers but also the means through which it implements various elements of its marketing strategy.

channel

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, ________ arises.

channel conflict

Under a ________ marketing system, independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.

contractual vertical

Which of the following are types of vertical marketing systems?

corporate administered contractual

A manufacturer that also owns distribution centers and retail outlets is an example of a _______ marketing system.

corporate vertical

Estee Lauder both manufactures MAC cosmetic products and owns the MAC retail stores. This is an example of a ________ marketing system.

corporate vertical

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.

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.

The most limited level of distribution density, one common among luxury brands, is known as ______ distribution (one word).

exclusive

A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called

franchising.

A marketing channel consists of ______ involved in the process of making a product or service available for use or consumption by consumers or industrial users.

individuals and firms

Intensive distribution means that a manufacturer places its product in _______ outlets.

many

Direct and indirect are types of

marketing channels.

The objective of logistics management in a customer-driven supply chain is to ________ while delivering ________.

minimize logistics costs; maximum customer service

One difference between intensive and exclusive distribution is that the latter uses ________ retailer(s) in a specified geographical area.

one

Which two of the following refer to the time between ordering an item and when it is received and ready for use or sale (choose 2).

order cycle replenishment time

Vertical marketing systems are best described as

professionally managed and centrally coordinated marketing channels.

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.

Which two best describe effective choices for designing a supply chain that meets customer requirements and aligns with strategy?

responsive efficient

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

reverse logistics.

Replenishment time refers to

the time between ordering an item and when it is available for use or sale.

In the context of a supply chain, customer service is the ability of logistics management to satisfy users in terms of which of these?

time convenience dependability

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling are included in

total logistics cost.

The two types of channel conflict are

vertical and horizontal.