BUSML 3250 Chapter 12

​________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. A. Corporate B. Contingent C. Aligned D. Administered E. Contractual

Administered

In​ a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. corporate VMS administered VMS horizontal marketing system contractual VMS conventional VMS

Administered VMS

Which of the following should be a​ manufacturer's first step when designing an effective marketing​ channel? evaluate channel alternatives analyze consumer needs establish strategic alliances identify channel alternatives set channel objectives

Analyze consumer needs

A​ ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. A. customer franchise B. resource bank C. channel level D. product platform E. contact center

Channel level

A​ ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone. corporate contingency contractual conventional communal

Contractual

In a​ channel, one or more independent​ producers, wholesalers, and retailers is a separate business seeking to maximize its own​ profits, perhaps even at the expense of the system as a whole. This type of channel is described as what kind of distribution​ system? Horizontal Administered VMS Contractual VMS Conventional Corporate VMS

Conventional

​A(n) ________ consists of one or more independent​ producers, wholesalers, and​ retailers, each seeking to maximize its own​ profits, sometimes even at the expense of the system as a whole. product platform intrinsic market matrix resource bank multitiered supply chain conventional distribution channel

Conventional distribution channel

A​ ________ VMS integrates successive stages of production and distribution under single ownership. A.contractual B.conventional C.communal D.contingency E.corporate

Corporate

Which of the following is a major type of vertical marketing​ system? A. extrinsic B. corporate C. multilevel D. conventional E. intrinsic

Corporate

Which of the following is a disadvantage of adding new channels in a multichannel distribution system? Reducing opportunities for franchising Minimizing publicity needs Decreasing control over the system Lowering sales and market coverage Decreasing complexity of markets

Decreasing control over the system

In​ a(n) ________​ channel, the same member both produces and distributes a product or service to consumers. tiered direct platform exclusive vertical

Direct

Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought​ online, and then invented the Kindle to electronically​ "ship" books to the​ reader's device. This technology is defined as​ ________ of the channel by Amazon. flow indirect marketing disintermediation intensive distribution a franchise

Disintermediation

The Bookworm began delivering books directly to customers through mail instead of selling through​ brick-and-mortar companies. This is an example of​ ________. indirect marketing intensive distribution disintermediation franchising exclusive distribution

Disintermediation

________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customer as quickly as possible. Loading docks Shipping platforms Product platforms Distribution centers Open warehouses

Distribution centers

Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? Resource banks Supply channels Factory-supply networks Downstream partners Upstream partners

Downstream partners

The ___________ organization is the most common type of contractual relationship. Conventional Multi-national Franchise Horizontal Entrepreneurial

Franchise

Why do firms have difficulty accessing potential market areas in developing countries, such as China and India? Anti-globalization efforts Highly centralized rural markets High operating costs Inadequate distribution systems Limited manpower

Inadequate distribution systems

A marketing channel that consists of one or more intermediaries is known as a(n) _________ marketing channel. Cyclic Upstream Looped Indirect Direct

Indirect

Producers of convenience products, such as bar soap and candy, typically seek to employ __________ distribution strategies

Intensive

​________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible. Direct Intensive Inclusive Exclusive Selective

Intensive

Apple uses selective distribution for several reasons such as the ability to develop good working relationships with selected channel members and for what other​ reason? It enhances a distinctive positioning. It yields better dealer support and customer service. It provides maximum brand exposure. It provides consumer convenience. It can expect a​ better-than-average selling effort from the channel member.

It can expect a better-than-average selling effort from the channel

For which product would a company use an exclusive distribution strategy? Newspapers Soft drinks Dairy products Chewing gum Luxury cars

Luxury cars

Ford and its network of independent franchised dealers is an example of a​ ________. ​ service-firm-sponsored equity strategic alliance ​manufacturer-sponsored retailer franchise system ​service-firm-sponsored retailer franchise system ​manufacturer-and-service-sponsored joint venture ​manufacturer-sponsored wholesaler franchise system

Manufacturer-sponsored retailer franchise system

From the economic​ system's point of​ view, the role of​ ________ is to transform the assortments of products made by producers into the assortments wanted by consumers. Marketing intermediaries ​third-party logistics price consultants upstream partners factory supervisors

Marketing intermediaries

​________ are the largest group of wholesalers. They include two broad​ types: full-service wholesalers and​ limited-service wholesalers. Manufacturer sellers ​Manufacturers' agents Selling agents Brokers Merchant wholesalers

Merchant wholesalers

A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments. Administered vertical marketing Corporate vertical marketing Multi-channel distribution Conventional distribution Horizontal marketing

Multi-channel distribution

Apple Computer sells its products such as iTunes and iMovies​ online, and sells its hardware through its own stores and through other​ retailers, such as Best Buy and​ Costco, and through vending machines. How is the Apple distribution system​ described? Contractual VMS​ manufacturer-sponsored wholesaler franchise Horizontal marketing system Multichannel marketing A contractual VMS Franchise

Multichannel marketing

Piggyback and fishyback are forms of what logistics​ element? Pipelines Integrated logistics management ​Just-in-time logistics Electronic data interchange​ (EDI) Multimodal transportation

Multimodal transportation

Channel members depend on one​ another, but they often act alone in their own​ short-run best interests and often disagree on who should do what and for what rewards. Which of the following best illustrates horizontal​ conflict? -Wendy's franchisees are unhappy with the price the mandated butcher charges for shipping hamburgers to each store. -One​ Wendy's franchise in the Chicago region does not contribute to the general​ Wendy's advertising​ pool, but due to its excellent​ location, it benefits from the increased traffic generated by the ads. -Johnnie Walker Black has provided all stores carrying the scotch with​ life-sized cutouts of Pierce Brosnan and at​ Bill's liquors, the staff has taken four of the cutouts and requests additional promo items be shipped to them. -Due to a shortage of​ hazelnuts, Nutella cannot get sufficient raw material to make its spread and has told Walmart and Costco the total number of packages to be shipped for the next quarter will be reduced by​ 25%. -Apple sells iPhones at Costco and orders them to not use the brand as a reference price to trade buyers down to cheaper brands.

One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but does to its excellent location, it benefits from the increased traffic generated by the ads

In intermodal​ transportation, which of the following describes the use of both rail and trucks for​ transportation? trainship fishyback piggyback airtruck drawbar

Piggyback

​________ or smart tag technology helps companies locate a​ product's exact position within its supply chain. RFID BCODE PRM VMS 3PL

RFID

Reusing, recycling,​ refurbishing, or disposing of​ broken, unwanted, or excess products returned by consumers or resellers is known as​ ________. cross merchandising disintermediation inbound logistics diverse logistics reverse logistics

Reverse logistics

​________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a​ company's products. Indirect Corporate Intensive Selective Exclusive

Selective

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise​ online? ​pop-up shopping ​wheel-of-retailing ​off-price retailing showrooming wholesaling

Showrooming

For which of the following products would the intensive distribution strategy most likely be​ used? A. soft drinks B. high-end cameras C. luxury cars D. lawn mowers E. furniture

Soft drinks

______ management refers to the management of upstream and downstream​ value-added flows of​ materials, final​ goods, and related information among​ suppliers, the​ company, resellers, and final consumers. Supply chain Customer Product cycle Cross Price

Supply chain

Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player​ roles? The producer and the final consumer The consumer and the financier The producer and the financier The consumer and the reseller The negotiator and the financier

The producer and the final consumer

Because logistics is complicated and viewed as a hassle by many​ firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as​ Ryder, Penske​ Logistics, BAX​ Global, DHL​ Logistics, FedEx​ Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx​ called?

Third-party logistics (3PL) providers

Using ________, retailers can share real-time data on sales and current inventory levels with suppliers. Transportation management systems (TMS) Automated storage and retrieval systems (ASRS) Vendor-managed inventory (VMI) systems Warehouse management systems (WMS) Distribution center management systems (DCMS)

Vendor-managed inventory (VMI) systems

A(n) ________ marketing system consists of​ producers, wholesalers, and retailers acting as a unified system. horizontal Vertical multitiered equilateral communal

Vertical

Conflict that occurs between different levels of the same marketing channel is known as​ ________ conflict. Communal Equilateral Horizontal Vertical multitiered

Vertical