MBA 882
_____ _____ means taking in product from multiple sources and transforming it, often through sorting it into different classifications for sales through the channel.
Accumulating bulk
In a(n) _____ VMS, the sheer size and power of one of the channel members place it in a position of channel control.
Administered
The function of _____ _____ occurs within a channel to better match quantities needed to space constraints and inventory turnover requirements.
Breaking Bulk
_____ _____ can occur when channel members experience disagreements and their relationships become strained or fall apart.
Channel conflict
_____ power involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.
Coercive
A(n) _____ VMS consists of otherwise independent entities that are bound together through legal agreements.
Contractual
The distribution strategy that is based on prestige, scarcity, and premium pricing is the ______ strategy.
Exclusive Distribution
True or false: Most producers operate their own transportation networks or provide warehousing facilities.
False
_____ also known as physical distribution, is the integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution.
Logistics
A(n) _____ strategy means that many of the intensive promotional activities take place from the manufacturer downward through the channel of distribution.
Push
Appliances and home furnishings require a limited search by consumers and are goods that typically have ______ distribution.
Selective
A(n) _____ _____ represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users.
Supply Chain
In a(n) _____ _____, retailers contract for varying degrees of exclusive dealings with a particular wholesaler.
Wholesaler Cooperative
Firms must be nimble in response to the many key change drivers currently affecting its business. What three characteristics describe a firm that is nimble?
adaptable flexible speedy
Each intermediary in the channel of distribution _____
adds value in terms of the functions it performs
A channel captain typically controls many aspects of a channel's operations in a(n) ______ VMS.
administered
When the sheer size and power of one of the channel members place it in a position of channel control, the result is a(n) ______ VMS.
administered
A(n) _____ intermediary does not take title to the products it distributes.
agent
Intermediaries engage in creating _____ when they accumulate products from several sources and then make those products available down the channel as a convenient package for consumers.
assortments
The function that occurs within a channel to better match quantities needed to space constraints and inventory turnover requirements is called
breaking bulk
Which five of the following are physical distribution functions?
breaking bulk transportation and storage creating assortments reducing transactions accumulating bulk and sorting
Which type of power requires a contract?
legitimate
Logistics that starts with production and ends with receipt of the finished good by the end-user consumer or business user is called ______ logistics.
outbound
The power that allows one of the channel members to reward in order to control the channel is called
reward power
The introduction of even one intermediary into a channel can greatly reduce the number of _____ necessary to complete an exchange.
transactions
A(n) _____ marketing system consists of vertically aligned networks behaving and performing as a unified system.
vertical
When channel members experience disagreements and relationships become strained or fall apart, the result is
channel conflict
The degree to which any member of a marketing channel can exercise influence over the other members of the channel is called
channel power
Selling, buying, and marketing communications are transaction and _____ functions of intermediaries.
communication
Intensive distribution is typically associated with ______ goods.
convenience
In which type of VMS has a channel member invested in backward or forward vertical integration by buying a controlling interest in other intermediaries?
corporate
In the long run, channel intermediaries remain in the channel only as long as they are adding efficiencies, reducing ______, and adding value within that channel.
costs
When intermediaries accumulate products from several sources and then make those products available down the channel as a convenient package for consumers, they are engaged in
creating assortments
When a producer of kitchen appliances decides to terminate its distributors and sell directly to retailers, it is an example of
disintermediation
Products that possess complex or unique properties that only a one-to-one in-person interaction with a customer can explain are good candidates for ______ distribution.
exclusive
Financing, market research, and risk-taking are _____ functions of intermediaries.
facilitating
A _____ organization is a contractual relationship between company 1 and company 2---where company 2 agrees to perform at the standards required by company 1.
franchise
The most recognizable type of a contractual vertical marketing system is
franchising
For what two reasons would a firm pursue a network or virtual organization?
free resources to focus on the firm's core deliverables quicker market response times
What are two value-adding ways to involve customers, in both B2B and B2C settings, in a value network?
have customers participate in ongoing research panels recognize and reward customers that participate at a high level
Producers make money by pushing finished goods out the door and into the channel of distribution. Because most producers don't operate their own shipping and warehousing networks, _____ and _____ are among the most commonly provided channel intermediary activities.
Transportation Storage
In an administered VMS, a channel _____ has the ability to control many aspects of the channel's operations.
captain or leader
Selecting a(n) _____ approach involves deciding on the level of distribution intensity, the required control and adaptability over the channel, and the priority channel functions.
channel
Power that involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations is called
coercive power
Which of the following are considerations that marketers must take into account when deciding on the right balance between control and flexibility?
cost issues among the various options strength of belief in the accuracy of the sales forecast the types of products involved likelihood that changes will occur in the marketplace
Manufacturers often use intermediaries to distribute their products because intermediaries
create value for buyers
Firms cultivate customer involvement in various aspects of product and market development to enable ______, which is a willingness and ability on the part of a customer to participate in communicating the brand message to others within his or her sphere of influence.
customer advocacy
Which of the following are reasons reverse logistics is used to get goods back to a manufacturer or intermediary after purchase?
customer dissatisfaction excess inventory spoilage and breakage overstocks
A _____ channel has no intermediaries and operates strictly from producer to end-user consumer or business user.
direct
A(n) ______ channel allows ultimate consumers to deal with producers instead of intermediaries for purchases.
direct
Which of the following are reasons that firms need to be nimble?
discontinuous innovation rapidly shifting technology relentless market globalization
The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries is called
disintermediation
A channel of _____ is a system of interdependent relationships among a set of organizations that facilitates the exchange process.
distribution
A channel member exerts _____ power when it adopts an approach of utilizing its unique competencies to influence others in the channel.
expert
If a car stereo specialty retailer has extremely knowledgeable salespeople and installers, car stereo manufacturers may be motivated to let the retailer decide how its products should be marketed. This is an example of ______ power.
expertise
Generally speaking, intermediaries in a channel result in
fewer transactions to complete an exchange cost savings to consumers
In a vertical marketing system (VMS), a channel member may
force cooperation through sheer clout within the channel own other channel members have contracts with other channel members
Logistics that starts with sourcing materials and knowledge inputs from external suppliers and goes to the point at which production begins is called ______ logistics.
inbound
In a(n) ______ channel, there are one or more intermediaries between the manufacturer and the end-user consumer.
indirect
Distribution _____ refers to the number of intermediaries involved in distributing the product.
intensity
Distribution ______ refers to the number of intermediaries involved in distributing a product.
intensity
A(n) ______ distribution strategy is designed to saturate every possible intermediary—especially retailers.
intensive
Which of the following are facilitating functions?
market research financing risk-taking
A(n) _____ intermediary takes title to the products it distributes. (Enter one word in the blank)
merchant
Match the intermediary to its correct description. Instructions
merchant middleman - middleman that buys goods outright, taking title to them manufacturer's agent - usually operates on an extended contract, sells within an exclusive territory, handles noncompeting but related lines of goods, and has limited authority to price and create terms of sale facilitating agent - assists in the performance of distribution tasks other than buying, selling, and transferring title distributor - wholesale middleman found when selective or exclusive distribution is common and strong promotional support is needed
Which of the following are major types of intermediaries?
middleman agent merchant middleman manufacturers' agent
Which of the following are key elements of a value network?
network and team relationships value viewed as network value value emanating from expertise and competencies a shared vision within the network
An organization that eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value is called a
network organization
When a company hands over one or more of its core internal functions to other (third-party) companies that are experts in those areas, it is engaged in
outsourcing
The goal of _____ relationship management strategies is to share resources, especially knowledge-based resources, to effect optimally profitable relationships between two channel members.
partner
The strategy that attempts to share resources, especially knowledge-based resources, to effect optimally profitable relationships between two channel members is called
partner relationship management
Channel _____ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.
power
In a(n) ______ strategy, much of the focus of the company's promotional investment is on the end-user consumer.
pull
A strategy in which many of the intensive promotional activities take place from the manufacturer downward through the channel of distribution is called a(n) ______ strategy.
push
A channel member enjoys _____ power when it is respected, admired, or revered based on one or more attributes and is able to use this power within the channel.
referent
Which type of power does a channel member have when it is respected, admired, or revered based on one or more attributes?
referent power
A contractual vertical marketing system is one in which
relationships among channel members are governed by contracts
A(n) _____ _____ is a group of independent retailers across a variety of product categories that band together to gain cost and operating economies of scale in the channel.
retailer cooperative
When independent retailers across a variety of product categories band together to gain cost and operating economies of scale in the channel, they create a(n)
retailer cooperative
Manufacturers may offer discounts or other incentives to retailers that run special promotions featuring the manufacturer's products. This is an example of ______ power.
reward
Slotting allowances are used to
secure distribution in an intermediary's inventory listing or onto a retail shelf
The distribution strategy that is designed to require that consumers engage in a limited search is called a(n) ______ strategy.
selective distribution
What are three transaction and communication functions performed by intermediaries?
selling marketing communications buying
Carlos' firm manufactures custom-made furniture that is sold through various furniture retailers. Carlos sources the wood he needs from various lumber manufacturers and uses a distributor to get his products to the retail stores for sale. The suppliers of the wood, the distributor, and the retail stores are all part of a
supply chain
The coordination of value-adding flows among the entities in a channel of distribution in a way that maximizes overall value delivered and profit realized is called
supply chain management
One or more intermediaries between ______ defines an indirect channel of distribution.
the manufacturer and the end-user consumer
A(n) _____ network is an overarching system of formal and informal relationships within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space.
value
_____ co-creation occurs when the members of the network combine capabilities according to their expertise and the competencies required from the situation.
value
An overarching system of formal and informal relationships within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space is called a
value network
When independent retailers contract for varying degrees of exclusive dealings with a particular wholesaler, the wholesaler and the retailers form a
wholesaler cooperative
As part of a push strategy, a ______ is when a manufacturer pays wholesalers or retailers an extra incentive to get them to place their products into inventory.
slotting allowance
Accumulating bulk means taking in product from multiple sources and transforming it, often through _____ it into different classifications for sales through the channel.
sorting
______ _____ _____ is the coordination of value-adding flows among the entities in a channel of distribution in a way that maximizes overall value delivered and profit realized.
Supply chain management
What is the purpose of a channel of distribution?
It makes possible the purpose of transferring possession of a product from producer to consumer or business user.
What are two advantages of a corporate vertical marketing system?
It produces cost and process efficiencies. The company exercises complete control over the marketing channel.
_____ power results from contracts such as franchise agreements or other formal agreements.
Legitimate
_____ , or third-party logistics (3PL), occurs when a company hands over one or more of its core internal functions to other (third-party) companies that are experts in those areas.
Outsourcing
_____ goods are goods for which a consumer may engage in a limited search.
Shopping
True or false: Often, customers drive the ultimate choice a marketing manager makes about a channel, as flexibility or control differentially impact the value proposition.
True
What are three issues to consider when selecting a channel?
What is the level of distribution intensity sought within the channel? What are the priority channel functions that require investment? How much control and adaptability are required over the channel and its activities?
