Chapter 12: Manage Marketing Channels, Logistics, and Supply Chain

________ intermediaries perform a variety of physical distribution, transaction and communication, and facilitating functions that make exchange possible. They do not take title to the product.

Agent

________ power is NOT a source of channel power.

Consumer

________ is one of the most commonly provided channel intermediary activities.

Transportation and storage

An intermediary works with large consumer product manufacturers as well as small local retailers. The company buys large quantities of products from the manufacturers and sells them in smaller quantities to retailers to better match quantities needed for space constraints and inventory turnover requirements. The intermediary is performing the distribution function of ________.

breaking bulk

Websites where customers come to engage with other customers, the sponsoring firm, and others in the ecosystem to share ideas and collaborate on topics of mutual interest are called ________.

customer communities

Which of the following has no intermediaries and operates strictly from producer to end-user consumer or business user?

direct channel

________ means the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, which is common in the electronic channel.

disintermediation

Logistics and other processes are managed using sophisticated and integrated ________.

enterprise resource planning systems

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products, ________ has occurred.

exclusive dealing

NextGen Electronix Inc. is a wholesaler of electronic goods in the city of Erbia. The company sells goods manufactured by CellDer Inc. The wholesaler enjoys monopoly because it is the only intermediary selling those products in the city. This is an example of a(n) ________.

exclusive territory

Financing, market research, risk-taking, and other services are considered to be ________ functions.

facilitating

A ________ is the highest-potential start-up and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.

franchise operation

An example of a contractual vertical marketing system is ________.

franchising

Unresolved channel conflict can result not only in an uncooperative and inefficient channel, but it can also ultimately impact end-user consumers through ________.

higher prices

To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay, firms utilize sophisticated ________.

just-in-time inventory control systems

________ strategies can be intensive, selective, or exclusive.

Distribution

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ________.

producers and consumers

A manufacturer employing a(n) ________ strategy focuses much of its promotional investment on the end-user consumer.

pull

Grape Inc. sells high-end wines to liquor, wine, and spirits wholesalers who have built relationships among select restaurants and hotels. Grape Inc. employs a(n) ________ strategy.

push

Introducing an intermediary into a channel may contribute to ________ that are necessary to complete an exchange.

reducing transactions

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________ power within the channel.

referent

Local Farmers of Tampa Bay sell their produce in the market every day. They band together to gain cost and operating economies of scale in the market for selling their produce. This is an example of a ________.

retailer cooperative

Venus Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. Venus collects the cartridges and then returns them to the producer for recycling. This is an example of ________.

reverse logistics

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ________ power in the form of writing big orders.

reward

Big Market purchases different fruits from local farmers and then sells them to local restaurants and retailers. If the fruits rot before Big Market sells them, the store takes the loss. As an intermediary, Big Market is performing the function of ________.

risk-taking

Consumers engage in limited search for items like midrange fashion apparel, home furnishings, and appliances. These are examples of ________ goods, which are candidates for selection distribution.

shopping

When an item is not in stock, it is called ________. In this case, inbound replenishment processes are triggered.

stockout

A(n) ________ represents all organizations involved in providing a firm, the members of its channels of distribution, and its end-user consumers and business users.

supply chain

Keisha is in charge of overseeing the flow of activities among several entities for Walmart. Her main objective is to coordinate these value-adding activities in a way that maximizes value and profit. She is in charge of ________.

supply chain management

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider ________.

the type of products involved

A channel of distribution consists of interdependent entities that ________.

transfer possession of a product from producer to consumer

________ occurs when channel members experience disagreements and their relationship becomes strained.

Channel conflict

________ enhance utilities by providing a wide array of specific functions including physical distribution functions, transaction and communication functions, and facilitating functions.

Channel intermediaries

________ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

Channel power

________ power involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

Coercive

________ is the fastest-growing retail format.

Electronic retailing

________ distribution is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing.

Exclusive

________ power can take the form of sharing important product knowledge.

Expert

________ goods are appropriate for intensive distribution, as their sales rely on the consumer seeing the product, feeling an immediate want, and being able to purchase now.

Impulse

________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Inbound logistics

________ power results from contracts such as franchise agreements or other formal agreements.

Legitimate

________ logistics is the process that starts with production and ends with the delivery of a final product.

Outbound

________ refers to companies handing over most or all of their supply chain activities to third-party organizations that are experts in those areas.

Outsourcing

________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution

Push strategy

________ is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption.

Retailing

________ is the point of contact in the supply chain with the consumer of the product.

Retailing

Good Egg Co. buys eggs from local farmers, sorts them into different grades, and then packages them to sell to larger grocers. Good Egg Co. is performing the distribution function of ________.

accumulating bulk

In a(n) ________ vertical marketing system, one channel member may be placed in a position of channel control.

administered

It is possible that a(n) ________ vertical marketing system can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation. An example of this is the relationship between Walmart and Procter & Gamble.

administered

A manufacturer employing a pull strategy would engage in ________.

advertising in mass media

Core Inc., a dealer of electronic items, enjoys economies of scale due to its large buying and selling operations and controls many aspects of the channel's operations. As a consequence of this, the company enjoys tremendous power in the market. In the context of administered vertical marketing systems, Core Inc. is a(n) ________.

channel captain

In an administered vertical marketing system, the sheer size and power of one of the intermediaries places it in a position of control. The lead player in such situations may be referred to as the ________.

channel captain

Intensive distribution is typically associated with low-cost ________.

convenience goods

A(n) ________ vertical marketing system creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity.

corporate

In a(n) ________ vertical marketing system, a channel member invests in backward or forward vertical integration by buying a controlling interest in other intermediaries.

corporate

Nadia works for a major soda distributor. The company decides to buy a transportation company to move its product from its own manufacturing facility to the consumer. This is an example of a(n) ________ vertical marketing system.

corporate

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut ________ and maximize ________ every step of the way to market.

costs; profits

Intermediaries engage in ________ when they accumulate products from several sources and then make those products available down the channel as a convenience for consumers.

creating assortments

A(n) ________ contains one or more intermediary levels.

indirect channel

When the objective is to obtain maximum product exposure throughout the channel, a(n) ________ strategy is designed to saturate every possible intermediary.

intensive distribution

A vertical ________ system consists of vertically aligned networks behaving and performing as a unified system.

marketing

A part of ERP, ________, guides overall management of the inbound materials from suppliers to facilitate minimal production delays.

materials requirement planning

In the context of the distribution channel, which of the following takes title to a product?

merchant intermediaries

A ________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

network organization

A virtual organization is otherwise known as a ________ organization.

network organization

Jenn, a production manager at a company, has decided to take a value network approach to create a competitive advantage over the company's competitors. In the context of network organizations, this approach will make the company's operations more ________.

nimble

The goal of ________ is to share resources, especially knowledge-based resources, to effect optimally profitable relationships between two channel members.

partner relationship management strategies

An example of a push strategy is ________.

paying a shelf fee

A stationary store offers a 5 percent discount on pens and pencils to students if they agree to purchase all the books needed for the academic year from the store. This is an example of a(n) ________.

tying contract

If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, it results in ________.

tying contract

A(n) ________ is thought of as an overarching system of formal and informal relationships within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space.

value network