Marketing Chapter 10: Marketing Channels
e
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? A. Control criteria B. Profitability criteria C. Sales criteria D. Investment criteria E. Adaptability criteria
d
Companies today see channel members as first-line customers and practice strong ________. A. discount pricing B. consumer advertising C. B2B selling D. partner relationship management E. trade promotions
inbound logistics moves products and materials from suppliers to the factory, outbound logistics moves products from the factory to resellers and ultimately to consumers and reverse logistics is the reusing, recycling, refurbishing or disposing of broken, unwanted or excess products returned by consumers or resellers
Explain SCM and how logistics plays a role.
Helping complete transactions through info, promotion, contact, matching and negotiation as well as fulfilling the completed transaction through physical distribution, financing and risk taking
How do channel members add value?
getting the right product to the right customer in the right place at the right time profitably
In general, what is logistics?
d
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____. A. vertical conflict B. an administered VMS C. franchising D. disintermediation E. horizontal conflict
b
Producers of convenience products typically use ______ distribution. A. direct B. intensive C. franchise D. selective E. exclusive
a
The length of a channel is indicated by ___________. A. the number of intermediary levels B. the number of final consumers C. the number of retailers in the channel D. the number of producers E. the number of wholesalers in the channel
e
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? A. Just-in-time logistics B. Reverse logistics C. Piggybacking D. RFID E. Vendor-managed inventory
channel conflict
What are disagreements among marketing channel members on goals, roles and rewards, who should do what and for what rewards?
horizontal (among firms at the same level of the same channel) and vertical (among firms at different levels of the same channel)
What are the 2 types of channel conflicts?
intensive, exclusive and selective
What are the 3 types of distribution?
d
What are the four major functions of logistics? A. Inventory management, transportation, shipping, warehousing B. Warehousing, inventory management, retailing, logistics information management C. Warehousing, inventory management, transportation, retailing D. Warehousing, inventory management, transportation, logistics information management E. Retailing, inventory management, transportation, and logistics information management
retailer (producer, retailers, consumers); wholesaler (producer, wholesalers, retailers, consumers); and agent/broker (producer, agents/brokers, wholesalers, retailers, consumers)
What are the types of indirect marketing channels?
analyzing customer needs, setting channel objectives, identifying major channel alternatives (types and numbers of intermediaries and responsibilities of channel members), evaluating alternatives (economic and adaptability criteria and control issues), and designing international distribution channels
What are the ways that companies design effective marketing channels?
teamwork both inside the company and among the marketing channel organizations to maximize performance of the entire distribution system
What does integrated logistics emphasize?
has no intermediary levels, the company sells directly to consumers
What is a direct marketing channel?
value delivery network
What is a network composed of the company, suppliers, distributors and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value?
marketing channel (distribution channel)
What is a set of independent organizations that help make a product or service available for use or consumption by the consumer or business user?
third-part logistics provider (3PL)
What is an independent logistics provider that performs any or all of the functions required to get a client's product to market?
contains one or more intermediary levels that perform some work in brining the product and its ownership closer to the final buyer
What is an indirect marketing channel?
giving a limited number of dealers the exclusive right to distribute the company's products in their territories (luxury brands)
What is exclusive distribution?
stocking the product in as many outlets as possible (convenience products, common raw materials)
What is intensive distribution?
supply chain management
What is managing upstream and downstream value-added flows of materials, final goods and related info among suppliers, the company, resellers and final consumers?
marketing logistics (physical distribution)
What is planning, implementing and controlling the physical flow of goods, services and related info from points of origin to points of consumption to meet customer requirements at a profit?
marketing channel management
What is selecting, managing and motivating individual channel members and evaluating their performance over time?
the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products (consumer electronics, furniture and home appliance brands)
What is selective distribution?
matching
What is shaping offers to meet buyer's needs, including activities like manufacturing, grading, assembling and packaging?
allows maximum control over presentation to the end-user and positioning efforts
What is the advantage of direct marketing channels?
disintermediation
What is the process by which traditional intermediaries are eliminated as companies question the value added by layers in the distribution channel?
dual distribution
What is the use of multiple direct channels, or the use of both direct and indirect channels by sellers often used to reach 2 or more customer segments?
c
When setting channel objectives, companies should state the objectives in terms of ______. A. expected profitability B. exclusive distribution arrangements C. targeted levels of customer service D. competitor's objectives E. the length of the channel
d
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 __________________. A. economic criteria B. consumer needs C. the profitability of the channel D. the responsibilities of channel members E. whether to use intensive or exclusive distribution
e
Which channel partners in a company's supply chain are upstream from a manufacturer or producer? A. Wholesalers B. Business distributors C. Customers D. Retailers E. Suppliers.
e
Which of the following describes a just-in-time logistics system? A. Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory. B. Just-in-time logistics systems greatly increase inventory-carrying and inventory-handling costs. C. Just-in-time logistic systems eliminate the need for forecasting. D. Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. E. Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
a
Which of the following is a reason that producers use marketing channels and channel intermediaries? A. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. B. Using channel intermediaries increases the number of contacts with customers. C. Marketing channel decisions only require a short-term commitment. D. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. E. Using marketing channels allows producers to retain control over how and to whom they sell their products.
b
Which of the following is an example of horizontal channel conflict? A. A consumer complaining to a producer about the quality of a product. B. A Ford dealer complaining that another Ford dealer is advertising in its territory. C. A retailer complaining about receiving damaged goods from a wholesaler. D. A retailer complaining about a producer's pricing. E. A consumer complaining to a retailer about the service he received.
e
Which technology could one day make the entire supply chain intelligent and automated? A. Electronic data interchange B. Just-in-time C. Vendor managed inventory D. Third party logistics E. Radio frequency identification
e
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers. A. Outbound logistics B. Warehousing C. Inventory management D. Inbound logistics E. Reverse logistics