MKTG 3650 CHAPTER 13

Which of the following channels for consumer goods is when it sells its products at the website?

A direct channel to consumers

In a corporate vertical marketing system?

A firm at one level of the channel owns the firms at the next level or owns the entire channel.

Which of the following retailers is most likely to be a member of a retailer cooperative?

A hardware store

Which of the following retailers is most likely to be a member of a voluntary chain?

A supermarket

"making bulk" channel function

Accumulating

Assemblers are commonly found in the agricultural and fishery industries. Large food products producers do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function?

Accumulating

Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called?

Accumulating

Wal-Mart, because of its sheer size and market position, is able to coordinate distribution activities through its market power. This is an example of this type of VMS?

Administered

Channel captains are associated with which type of channel structure?

Administered VMS

A large grocery wholesaler that supplies a large number of independent and chain grocers. Then resells in smaller quantities to its retail grocery customers is?

Allocating

Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amounts to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate?

Allocating

This function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers.

Allocating

Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose.

Allocating

Bring together a variety of different products to offer their customers, they are preforming the?

Assorting

Bringing together the range of books, supplies, sundries, and gifts it believes customers want, it is engaged in?

Assorting

One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers.

Assorting

This arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Backward integration

For which of the following products is exclusive distribution most likely?

Caterpillar tractors

Each level in the supply chain operates under independent ownership.

Conventional supply chain

Brands not only manufactures clothing but also operates its own retail stores (factory outlets), this is an example of?

Corporate VMS

An outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure?

Corporate vertical marketing system

Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store.

Corporate vertical marketing systems

A channel consisting of only producers and final customers, with no middlemen providing assistance, is called?

Direct

Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner.

Distribution centers

Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are?

Distribution centers

This consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user

Distribution channel

Wholesaling middlemen that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemens' buyers.

Drop shippers

Distributes through a variety of channels to reach essentially the same customer?

Dual distribution

Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing?

Dual distribution

The tendency for producers to employ multiple channels of distribution to reach the same target markets is called?

Dual distribution

The manufacturer probably will opt to employ which form of channel structure for reaching consumers?

Employing an agent to handle sales to other intermediaries

The Olympics Emporium is the only place in Dallas where a collector of Olympic memorabilia can buy a set of eight Olympic coins minted in 24K Gold priced at $15,000. What kind of distribution coverage strategy is being used?

Exclusive

This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations.

Exclusive distribution

Which of the following is not a benefit of business format frachises for franchisees?

Franchisees are paid royalties by franchisors to offset their initial investment in the franchise.

If there is a traditional channel for consumer goods, it is?

From producer to wholesaler to retailer to consumer

For which of the following products is intensive distribution most likely to be employed?

Gillette razor blades

Which of the following is not an advantage of vertical marketing systems?

Improved efficiencies and reduced cost, Reduced conflict in the channel, Better service to ultimate consumers, Improved cooperation between channel members (all of the above)

A vertical marketing system (VMS)

Improves the channel's operating coordination, efficiency, and effectiveness.

Direct channels for products are most likely for?

Industrial installation

This type of distribution is best suited to consumer convenience goods and some shopping goods?

Intensive distribution

The term used when multiple transportation modes are employed to ship any item is?

Intermodal transportation

"Inventory in motion or at rest throughout the supply chain"

Logistics

The supply chain function in which buyers and sellers are brought together to perform exchanges is?

Matching

Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called?

Materials management

Movement of parts and materials from their sources of supply into the manufacturing process is called?

Materials management

When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?

Negotiating

The physical movement of finished goods from producers to middlemen and, eventually, to consumers is?

Physical distribution

The most common channel of distribution for consumer goods is?

Producer to Wholesaler to Retailer to Consumer

Which distribution channel is a small manufacturer of specialty wood gift products sold to gift shops most likely to use?

Producer to agent to retailer

Which distribution channel is the manufacturer of small fireproof safes for businesses most likely to use?

Producer to industrial distributor to user

"If the net profit margin on each sales dollar earned is 5%, a supply chain operational cost savings of $5,000 yields the same return to the firm's bottom line as would a sales increase of $100,000."

Profit leveraging of costs

Which of the following is not a benefit of business format frachises for the franchisors?

Reduced exposure to potential federal and state regulation.

This limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments.

Selective distribution

For which of the following products is a manufacturer most likely to use intensive distribution?

Softdrinks

Sorts investment opportunties based on "risk" and "return" from which its clients can choose

Sorting

When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," this is?

Sorting

Which channel function creates time utility for consumers?

Storage

The channel of distribution for consumer products does not include which of the following?

Suppliers of component parts to the producer.

Groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers?

Supply chains

The sequence of organizations and individuals through which finished consumer goods move is called?

The channel of distribution

Physical movement of finished goods, raw materials, and component parts between channel members.

Transportation

This is when a firm operates at more than one level in a marketing channel or supply chain?

Vertical integration

The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a?

Voluntary chain

The primary distinction between voluntary chains and retailer cooperatives is?

Whether they are set-up by wholesalers or by retailers

The main difference between retailer cooperatives and voluntary chains is?

Who organizes them

Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. Todd is a?

drop-shipper