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