Ch 10
Which technology could one day make the entire supply chain intelligent and automated?
Radio frequency identification
Most companies see their intermediaries as first-line customers and partners. They practice strong _____________________ management to forge long-term partnerships with channel members.
partner relationship
A ________ consists of producers, wholesalers, and retailers acting as a unified system.
vertical marketing system
Channels often involve long-term commitments and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes?
Adaptability criteria
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
What are the four steps to designing marketing channels in their correct order?
Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives.
Which of the following statements is true regarding channel organization?
Channel members are dependent on each other for the overall success of the channel.
Which of the following describes 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.
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 of the following statements regarding marketing logistics is true?
Marketing logistics involve inbound logistics, outbound logistics, and reverse logistics.
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
Suppliers.
Which of the following statements is true regarding marketing channels and channel intermediaries?
Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products.
Marketing logistics (or physical distribution) is ______________.
an area of potentially high cost-savings and improved customer satisfaction
When assigning functions to channel members, it is important for producers to ________.
assign functions to the channel members that can add the most value for the cost
Distribution channels are complex ______________ in which people and companies interact to accomplish individual, company, and channel goals.
behavioral systems
A company should forge strong partnerships with channel members to create a marketing system that meets the needs of _____________.
both the manufacturer and the partners
What are the four major functions of logistics?
Warehousing, inventory management, transportation, logistics information management
Channel alternatives must be evaluated according to ________________criteria.
economic, control and adaptive
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
corporate VMS
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____.
disintermediation
When selecting intermediaries, the company should evaluate each channel member's years in business, other lines carried, location, _______________________.
growth and profit record, cooperativeness, and reputation
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
Companies can achieve ______________ harmony among functions by creating cross-functional logistics teams, integrative supply manager positions, and senior-level logistics executive positions with cross-functional authority.
logistics
One key function performed by channel members is ___________, or shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
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 ____________________________, specialization, and scale of operation.
of the intermediaries' contacts and experience
New types of channel organizations have appeared that _________________.
provide stronger leadership and improved performance
When channel members cooperate, they can more effectively _________________.
sense, serve, and satisfy the target market
When setting channel objectives, companies should state the objectives in terms of ______.
targeted levels of customer service
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________________.
the responsibilities of channel members
The second step of channel design is the identification of the major channel alternatives in terms of the _________________.
types of intermediaries, number of intermediaries, and the channel responsibilities of each
The length of a channel is indicated by ___________.
the number of intermediary levels
Full-line forcing 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. Which of the following statements is true regarding full-line forcing?
It may or may not be legal.
Marketing channels perform many key functions. Some help ______________by gathering and distributing information needed for planning and aiding exchange as well as developing and spreading persuasive ______________ about an offer.
complete transactions; communications
Channel members perform _____________________.
contact work, matching work, and negotiations
A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers.
conventional distribution channel
To ensure channel success, all channel firms should understand and accept their roles, _________________.
coordinate their goals and activities and cooperate to attain overall channel goals
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in its territory.
What is the most common type of a contractual VMS?
A franchise
What is the first step in marketing channel design?
Analyzing consumer needs.
______________ begins with assessing customer channel service needs and company channel objectives and constraints.
Channel design
Companies today see channel members as first-line customers and practice strong ________.
partner relationship management
Most companies today see their intermediaries as first-line customers and focus on ________ to forge long-term relationships with channel members.
partner relationship management
A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.
channel level
Producers of convenience products typically use ______ distribution.
intensive
Marketing channels face continuous and sometimes dramatic change. Three of the most important trends are the growth of ___________________________ marketing systems.
vertical, horizontal and multichannel
Which of the following statements is true regarding the selection of qualified channel members?
Producers vary in their ability to attract qualified marketing intermediaries.
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
Reverse logistics
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, selective, and exclusive
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
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.
partner relationship management
Other functions of marketing channels including helping to fulfill the completed transactions by offering ____________________________.
physical distribution; financing and risk-taking
A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
value delivery network
Under which type of system does the customer share real-time data on sales and current inventory levels with the supplier, and the supplier then takes full responsibility for managing inventories and deliveries?
Vendor-managed inventory
What are the four major functions of marketing logistics?
Warehousing, inventory management, transportation, and logistics information management