Chapter 12
What is a horizontal marketing system?
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
What is an indirect marketing channel?
A channel containing one or more intermediary levels
What is a third-party logistics provider?
An independent logistics provider that performs any or all of the functions required to get a client's product to market
Which term refers to a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer?
Channel level
________ 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 exclusive distribution?
Giving a limited number of dealers the exclusive right to distribute the company's products in their territories
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 describes a multichannel distribution system?
One in which a single firm sets up two or more marketing channels to reach one or more customer segments
________ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
Reverse Logistics
Which of the following describes disintermediation?
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
Channel members' performance should be evaluated against standards which include all of the following except __________.
channel management
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
A(n) __________ channel consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.
conventional distribution
A(n) __________ has no intermediary levels.
direct marketing channel
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.
partner relationship management
Marketing logistics is __________.
planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
Marketing channel management refers to __________.
selecting, managing, and motivating individual channel members and evaluating their performance over time
Selective distribution is __________.
the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products
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
Which of the following describes a contractual VMS?
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts
Which of the following describes an administered VMS?
A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties
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.
Which of the following is designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible?
Distribution center
A direct marketing channel is __________.
a channel that has no intermediary level
A marketing channel is best defined as __________.
a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
Historically, __________ have lacked leadership and power, often resulting in damaging conflict and poor performance.
conventional distribution channels
________ is a strategy in which the seller requires that dealers not handle competitors' products.
exclusive dealing
The concept of __________ recognizes that providing better customer service and trimming distribution costs require teamwork.
integrated logistics management
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 is __________.
managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers
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
Intensive distribution is best defined as __________.
stocking the product in as many outlets as possible
How is integrated logistics management defined?
The logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system
What are the four major functions of logistics?
Warehousing, inventory management, transportation, and logistics information management
A corporate VMS is
a vertical marketing system that combines successive stages of production and distribution under single ownership