Marketing Chapter 13
In a corporate vertical marketing system,
In a corporate vertical marketing system
Which distribution channel is the manufacturer of small fireprood safes for businesses most likely to use?
Producer to industrial distributor to user
Which of the following channels for consumer goods is Avon using when it sells its products at the avon.com website?
• A direct channel to consumers
Which of the following retailers is most likely to be a member of a retailer cooperative?
• A hardware store
Which of the following retailers is most likely to be a member of a voluntary chain?
• A supermarket
Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function?
• Accumulating
Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called:
• Accumulating
The "making bulk" channel function is formally called:
• Accumulating
Wal-Mart, because of its sheer size and market position is able to coordinate distribution activities through its market power. This is an example of the ______________ type of VMS.
• Administered
Channel captains are associated with which type of channel structure?
• Administered VMS
General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n):
• Administered VMS
Which of the following is not an advantage of vertical marketing systems?
• All of the above are advantages
Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate?
• Allocating
Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function?
• Allocating
The ____________ function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers.
• Allocating
Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose.
• Allocating
One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers. This process is the ____________ channel function.
• Assorting
Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores.
• Assorting
When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are peforming the __________ channel function.
• Assorting
When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in _______ .
• Assorting
__________________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.
• Backward integration
In a _______ , each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities.
• Conventional supply chain
Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n):
• Corporate VMS
The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure?
• Corporate vertical marketing system
Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of
• Corporate vertical marketing systems.
A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution.
• Direct
Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner.
• Distribution centers
Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________.
• Distribution centers
A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user
• Distribution channel
_________ are wholesaling middleman that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemens' buyers.
• Drop shippers
Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a:
• Drop-shipper
Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as:
• Dual distribution
Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___________ .
• Dual distribution
The tendency for producers to employ multiple channels of distribution to reach the same target markets is called:
• Dual distribution
A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers?
• Employing an agent to handle sales to other intermediaries
The Olympics Emporium is the only place in Dallas where a collector of Olympic memorabilia can buy a set of eight Olympic coins minted in 24K Gold priced at $15,000. What kind of distribution coverage strategy is being used?
• Exclusive
____________ is the most restricted form of distribution. This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations.
• Exclusive distribution
Which of the following is not a benefit of business format frachises for franchisees?
• Franchisees are paid royalties by franchisors to offset their initial investment in the franchise.
If there is a traditional channel for consumer goods, it is:
• From producer to wholesaler to retailer to consumer
For which of the following products is intensive distribution most likely to be employed?
• Gillette razor blades
For which of the following products is exclusive distribution most likely?
• Gillette razors
A vertical marketing system (VMS):
• Improves the channel's operating coordination, efficiency, and effectiveness.
Direct channels for products are most likely for _________ .
• Industrial installation
The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges, etc. -- are employed to ship any item is ___________ .
• Intermodal transportation
"Inventory in motion or at rest throughout the supply chain" is called:
• Logistics
The supply chain function in which buyers and sellers are brought together to perform exhanges is:
• Matching
Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians.
• Materials Management
Movement of parts and materials from their sources of supply into the manufacturing process is called:
• Materials management
When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?
• Negotiating
The physical movement of finished goods from producers to middlemen and, everntually, to consumers is:
• Physical distribution
Which of the following companies is least likely to function as a channel captain in their respective supply chains?
• Pizza Hut
Which distribution channel is a small manufacturer of specialty wood gift products sold to gift shops most likely to use? Assume that the manufacturer is not able to afford its own sales force.
• Producer to agent to retailer
Cajun Fire is a small producer of jalepeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use?
• Producer to agent to retailer to consumer
The most common channel of distribution for consumer goods is _______ .
• Producer à Wholesaler à Retailer à Consumer
Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational savings of $5,000 yields the same return to the Firm's bottom line as would a sales increase of $100,000." This statement reflects:
• Profit leveragin of costs
Which of the following is not a benefit of business format frachises for the franchisors?
• Reduced exposure to potential federal and state regulation.
For which of the following products is selective distribution most likely?
• Revlon cosmetics
____________ limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments.
• Selective distribution
For which of the following products is a manufacturer most likely to use intensive distribution?
• Softdrinks
Merril Lynch, an investment firm, sorts investment opportunties based on "risk" and "return" from which its clients to choose. Merril-Lynch is peforming which channel function?
• Sorting
When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed?
• Sorting
When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," they are performing the ___________ channel function
• Sorting
Which channel function creates time utility for consumers?
• Storage
The channel of distribution for consumer products does not include which of the following?
• Suppliers of component parts to the producer.
_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers.
• Supply chains
The major distinction between voluntary chains and retailer cooperatives is who originated the distribution system.
• TRUE
The sequence of organizations and individuals through which finished consumers goods move is called:
• The Channel of Distribution
__________ involves the physical movement of finished goods, raw materials, and component parts between channel members.
• Transportation
_____________ is when a firm performs more than one set of activities in a marketing channel or supply chain.
• Vertical integration
The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a:
• Voluntary chain
The primary distinction between voluntary chains and retailer cooperatives is:
• Whether they are set-up by wholesalers or by retailers
The main difference between retailer cooperatives and voluntary chains is:
• Who organizes them
Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. He takes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25 to 50 gallon barrels directly from the producer to the machine shops. Todd is a:
• drop-shipper
