Marketing Ch 12 e3
supply chain
"make and sell" firms raw materials, productive inputs and factory capacity
Demand Chain
"sense and respond" planning starts with the needs of the target customer
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in its territory
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
An administered VMS
What is the first step in marketing channel design?
Analyzing consumer needs
Distribution channels are more than simple collections of firms tied together by various flows. Which of the following statements is NOT a characteristic of distribution channels?
Channel systems stand still, restricting formation of new intermediary systems.
________ is a strategy in which the seller requires that dealers not handle competitors' products.
Exclusive dealing
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.
________ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
Reverse logistics
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
Suppliers
Horizontal Marketing System
channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
Channel members' performance should be evaluated against standards which include all of the following EXCEPT __________.
channel management
Value Delivery Network
company, suppliers, customers who partner to improve the performance of the entire system
Channel members should be selected on the basis of all of the following attributes EXCEPT __________.
competitiveness
The franchise organization is the most common type of __________ VMS (vertical marketing system).
contractual
franchise organization
contractual vertical marketing system in which a channel member, called a franchisor, link several stages in the production-distribution process.
Producers of ________ typically use intensive distribution for their products.
convenience goods
Historically, __________ have lacked leadership and power, often resulting in damaging conflict and poor performance.
conventional distribution channels
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) ________.
corporate VMS
Disintermediation
cutting out of marketing channel intermediaries by producers or the displacement of traditional resellers by new intermediaries
A(n) __________ has no intermediary levels.
direct marketing channel
Upstream Partners
firms that supply raw materials, parts, finances etc to create a product or service
The concept of __________ recognizes that providing better customer service and trimming distribution costs require teamwork.
integrated logistics management
Marketing Channel
interdependent organizations that help make a product available for use
The length of a channel is indicated by the number of ________.
intermediary levels
channel level
layer of intermediaries that performs some work in bringing the product and its ownership closer to final buyer
From the producer's point of view, a greater number of levels of marketing channel means __________.
less control and greater channel complexity
Companies today are placing greater emphasis on logistics for several reasons, which include all of the following EXCEPT __________.
limited product variety has created problems for logistics management
supply chain management
managing upstream and downstream value added flows of materials, final goods, and info among suppliers, companies, final consumers
One key function performed by channel members is ________, shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
When a single firm sets up two or more marketing channels to reach one or more customer segments, it is using a(n) ________.
multichannel distribution system
Direct Marketing Channel
no intermediary levels
conventional distribution systems
one or more independent producers, each seeking to max its own profits (even at the expense of profits for the system)
indirect marketing channel
one or more intermediary levels
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.
partner relationship management
Companies today see channel members as first-line customers and practice strong ________.
partner relationship management
In making products and services available to consumers, channel members add value. Key functions performed by the marketing channels include all of the following EXCEPT __________.
pricing
Exclusive territorial agreements
producer or seller limit territory
Vertical Marketing Systems (VMAs)
provide channel leadership and consists of producers, wholesalers, and retailers acting unified
Multichannel distribution systems
single firm sets up two or more marketing channels to each one or more customer segments
When setting channel objectives, companies should state the objectives in terms of ________.
targeted levels of customer service
tying agreements
the dealer must take most or all of the line
Downstream partners
the marketing channels or distribution channels that look toward the customer, including retailers or wholesalers
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
exclusive dealing
the seller requires that the exclusive distribution sellers not handle competitors products
major logistics functions
warehousing, transportation, inventory mgt, logistics info mgt
exclusive distribution
when producer gives only a limited number of dealers the exclusive right to distribute its products in their territories
________ 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
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.
What are the four major functions of logistics?
Warehousing, inventory management, transportation, and 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