Chapter 14 Marketing Channels and Supply Chain Management

The supply chain includes:

All entities that facilitate product distribution

Which of the following is most likely to use exclusive distribution?

Boeing 777 Freighter

The driving force behind the marketing channel decisions should be

Customer Satisfaction

_______ systems exploit the information in supply chain partners' information systems and make it available for easy reference.

Customer relationship management

Electronic data interchange (EDI) is most effective for which type of logistics activity?

Order Processing

Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Refer to Scenario 14.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a movie while out shopping for food or other supplies. Based upon this, what type of utility

Place Utility

Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer?

Target

BSNF Logistics is a third-party organization that companies can use to help with their logistics needs. BSNF claims that it has strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______.

Third Party Logistics Firm

ACME Corp. sells hammers and other tools to Blue's Hardware Store. Suppose that ACME, which is the only supplier of a specific type of hammer that Blue's sells, informs Blue's that it will have to purchase certain other products from ACME if it wants to continue receiving the hammers. Blue's is dismayed because these other products are costly. It has no need for these products. ACME is attempting to get Blue's to enter into _______.

Tying Agreement

A marketing channel is defined as a group of individuals and organizations that

Directs the flow of products from producers to customers

Fila Sports Oceania is a subsidiary of an Italian company that owns apparel rights for certain teams in the Australian Football League. Fila introduced a policy in which retailers could not feature Fila products in the same stores as other licensed products from its rivals. The Australian Competition and Consumer Commission ruled this as anticompetitive. Fila was most likely forcing its retailers into _______.

Exclusive Dealing

In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______.

Horizontal Channel Integration

Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______.

Industrial Distributor

Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. What type of market coverage is Redbox most likely to use?

Intensive Distribution

Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Redbox kiosks keep track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-

Inventory Management

Which of the following would most likely use intensive distribution?

Kimberly-Clark

Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______.

Manufacturer's Agent

Jake is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Jake use?

Railroad

The supply chain begins with______________ and ends with_________________.

Raw Materials ; Customers

Which market coverage is often used to motivate retailers to provide adequate service?

Selective

The coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer is called

Supply Chain Management

Which of the following includes activities such as manufacturing, research, sales, advertising, and shipping, as well as involving all entities that facilitate product distribution?

Supply Chain Management

In an efficient supply chain, ______ provide direct or indirect input to make the product, and ______ are responsible for delivery of the product and after-market services to ultimate customers.

Upstream Firms; Downstream Firms

In addition to producing the popular iPhone and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of

Vertical Channel Integration

A manufacturer has the legal right to refuse to do business with a channel member unless _______.

the channel member resits policies that are anticompetitive or in restraint of trade