MAR255 Exam 2 Chapter 10
What are the four major functions of logistics?
Warehousing, inventory management, transportation, logistics information management
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
Reverse logistics
What are the four steps to designing marketing channels in their correct order?
Setting channel objectives, analyzing consumer needs, identifying major channel alternatives, and evaluating the alternatives
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
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 is the first step in marketing channel design?
analyze consumer needs
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
Which of the following statements is true regarding channel organization?
channel members are dependent on each other for the overall success of the channel
A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers.
conventional distribution channel
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
Producers of convenience products typically use ______ distribution.
intensive
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
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
Which of the following statements regarding marketing logistics is true?
marketing logistics involve inbound logistics, outbound logistics, and reverse 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
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.
partner relationship management
Companies today see channel members as first-line customers and practice strong ________.
partner relationship management
Which of the following statements is true regarding the selection of qualified channel members?
producers vary in their ability to attract qualified channel members
Which technology could one day make the entire supply chain intelligent and automated?
radio frequency identification
what is a horizontal channel conflict?
refers to a disagreement among two or more channel members at the same level. For example, suppose a toy manufacturer has deals with two wholesalers, each contracted to sell products to retailers in different regions.
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
A ________ consists of producers, wholesalers, and retailers acting as a unified system.
vertical marketing system
What are the four major functions of marketing logistics?
warehousing, inventory management, transportation, and logistics information management
What is the most common type of a contractual VMS?
a franchise