Marketing Exam 4 Chapter 10
Supply chain accounts for nearly ___% of a products cost
75
__________ is the use of more than one but fewer than all of the intermediaries who are willing carry the company's products.
Selective distribution
Disagreements among marketing channel members on goals, roles, and rewards
channel conflict
Channel decisions: Can lead to ______ ______.
competitive advantage
a marketing channel that has no intermediary level.
direct marketing channel
What is the most common type of a contractual VMS?
franchise
Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to consumption
marketing logistics
raw materiel, parts supplier, manufacturer, reseller, consumer is the _____ ______.
supply chain
Channel members add value by bridging the major _______________, _________________, and __________________________ gaps that separate goods and services from users.
time, place, and possession
_________ conflict occurs between different levels of the same channel. (KFC parent company and its franchise operations)
vertical
Consists of one or more independent producers, wholesalers, and retailers and Each member is a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.
Conventional distribution channel
is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.
Integrated logistics management
__________ is stocking the product in as many outlets as possible.
Intensive distribution
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which technology could one day make the entire supply chain intelligent and automated?
Radio frequency identification
What are the four major functions of logistics?
Warehousing, inventory management, transportation, logistics information management
Which of the following is an example of horizontal channel conflict?
a Ford dealer complaining that another Ford dealer is advertising in its territory.
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?
adaptability criteria
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
administered VMS
Channel decisions: ______ _______ other marketing decision
affect every
What is the first step in marketing channel design?
analyzing customer needs
Consumers want ________ assortments of products in _______ quantities.
broad, small
How to intermediaries usually offer the firm more than it can achieve on its own?
contacts, experience, specialization, and scale of operation
a _________ VMS consists of independent firms at different levels of production and distribution that join together through contracts.
contractual
A(n) __________ consists of independent firms at different levels of production and distribution joining together through contracts.
contractual vertical marketing system
a __________ VMS combines successive stages of production and distribution under single ownership.
corporate
starts with the marketplace and works backward to the factory or even to sources of supply
customer centered logistics
The goal of marketing logistics is to...
deliver a targeted level of customer service at the least cost
You have developed a new product and have created a website where customers can go to order the product. Which type of channel are you most likely utilizing?
direct channel
the company sells directly to consumers
direct marketing channel
No intermediary levels
direct marketing levels
__________ is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.
disintermediation
Companies need to pay attention to their ______ _______...
distribution channels
__________ is giving a limited number of dealers the exclusive right to distribute the company's products in their territories.
exclusive distribution
In ___________ organizations, a channel member, called a franchisor, links several stages in the production-distribution process.
franchise
The ____________ organization is the most common type of contractual relationship
franchise
Intermediaries create _____ _______ in making goods available to target markets.
greater efficiency
A(n) __________ is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
horizontal marketing system
Two or more companies at one level join together to follow a new marketing opportunity.
horizontal marketing system
____________ conflict occurs among firms at the same level of the channel. (Ford Dealership vs Ford Dealership)
horziontal
One or more intermediary levels
indirect marketing levels
Producers of convenience products typically use ______ distribution.
intensive
Should be done in a cost effective and profitable manner
inventory management
Carry small inventory, new stock arrives when needed
just in time logistics system
The greater number of levels means ______ ________ and greater channel ___________!
less control, complexity
Your favorite ice cream travels from the producer, who manufacturers the product, through several other organizations before arriving at the local grocery store, where you purchase the product. What is this set of organizations called?
marketing channel
involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.
marketing logistics
planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customers' requirements at a profit.
marketing logistics
The length of a channel is indicated by ___________.
number of Intermediary Levels
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 channel structures would be best suited for a ballpoint ink pen?
producer, wholesaler, retailer, consumer
Which of the following functions do intermediaries not perform?
production
gives the physical location of a product. (smart tag technology)
radio frequency identification
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
reverse logistics
_________ __________ store goods for moderate to long periods.
storage warehouses
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
suppliers
Marketing logistics involves the entirety of _________ ________ __________.
supply chain management
Why do producers give some of the selling job to channel partners?
they create greater efficiency in making goods available to target markets.
an independent logistics provider that performs any or all of the functions required to get a client's product to market.
third party logistics provider
What are these an example of: manufacturer-sponsored retailer franchise system, manufacturer-sponsored wholesaler franchise system, and service-firm-sponsored retailer franchise system.
three types of franchises
Why do producers use intermediaries?
to increase efficiency
Intermediaries are also called middlemen and include wholesalers and retailers. True or False?
true
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.
A(n) __________ coordinates successive stages of production and distribution through the size and power of one of the parties.
administered vertical marketing system
an ____________ VMS coordinates successive stages of pro duction and distribution through the size and power of one of the parties.
administred
Expansion of sales and marketing coverage and Tailor-made products and services for the specific needs of customer segments
advantages of multichannel distribution system
A layer of intermediaries that performs work in bringing the product and its ownership closer to the final buyer
channel level
__________ is a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer.
channel level
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 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
serve as distribution channels that link the firm and its customers.
downstream partners
Interdependent organizations that help make a product or service available for use or consumption
marketing channel
What are these describing the role of: Transform the assortments of products made by producers into the assortments wanted by consumers
marketing intermediaries
Getting the right product to the right customer in the right place at the right time. Bottom line of? (physical distribution)
marketing 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
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?
may or may not be legal
A single firm sets up two or more marketing channels to reach customer segments.
multichannel distribution system
Producers make _______ assortments of products in ______ quantities.
narrow, large
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 __________________.
responsibilities of channel members
Bottom line...Getting the ____________ product to the ___________ customer in the ______________ place at the ____________ time.
right, right, right
involves managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
supply chain management
managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
supply chain managment
Company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system
value delivery network
Producers use intermediaries (also called middle men) to create ________________ _____________________in making goods available to target market.
greater efficiency
Warehousing, Inventory management, Transportation, and Logistics information management are functions of what?
logistics
Channel decisions: May involve ____ ____ _______ to other firms
long term commitment
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 levels
Harder to control and Generates conflict
disadvantages of multichannel distribution system
Occurs when product or service producers cut out marketing channel intermediaries or when radically new types of channel intermediaries displace traditional ones
disintermediation
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____.
disintermediation
large, highly automated warehouses that receive goods, take orders, fill them, and deliver goods to customers. (Designed to move goods)
distribution centers
A(n) __________ is a marketing channel containing one or more intermediary levels.
indirect marketing channel
How do channel members add value that separate goods and services from those who use them?
major time, place, and possession gaps
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.set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
marketing channel
__________ uses a single firm sets up two or more marketing channels to reach one or more customer segments.
multichannel distribution system
__________ uses a single firm to set up two or more marketing channels to reach one or more customer segments.
multichannel distribution system
selecting, managing, and motivating individual channel members and evaluating their performance over time
multichannel marketing
combines two or more modes of transportation.
multimodal transportation
When setting channel objectives, companies should state the objectives in terms of ______.
targeted levels of customer service
supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
upstream partners
A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
value delivery network
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
A(n) __________ is a channel structure in which producers, wholesalers, and retailers act as a unified system.
vertical marketing system