Chapter 12
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in their territory.
What does the process of designing marketing channels start with?
Analyzing consumer needs
In 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system (VMS)?
Corporate
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.
Which of the following statements regarding marketing channel behavior and design is correct?
The success of individual channel members depends on the overall channel's success.
Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) __________ vertical marketing system (VMS).
administered
Due to logistics costs in China, the majority of companies can only access
affluent areas of major cities.
Just-in-time logistics systems allow producers and retailers to
carry small inventories to last for only a few days of operations.
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of __________.
disintermediation
Channel alternatives should be evaluated against _____, ______, and _______ criteria.
economic control adaptability
Some sellers require that dealers not handle competitor's products. This strategy is called __________.
exclusive dealing
__________ 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.
full-line forcing
Channel members create ______than manufacturers could achieve on their own.
greater efficiencies
Cross-functional teamwork within the company, building logistics partnerships, and third party logistics are all important elements of __________.
integrated logistics management
One key function of channel members is __________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
Companies now use __________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate channel partners.
partner relationship management
The goal of marketing logistics should be to
provide a targeted level of customer service at the least cost
CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of __________ channel members.
selecting
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________. `
selectively
When setting channel objectives, companies should state the objectives in terms of __________.
targeted levels of customer service
The length of a channel is determined by __________.
the number of intermediary levels
After 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 company, suppliers, distributors, and customers who open double quotepartnerclose double quote with one another to improve the performance of the entire system make up the __________.
value-delivery network
What are the four major functions of logistics?
warehousing inventory mangement transportation logistics information management
Using __________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.
vendor-managed inventory
