MKT 291 - Chapter 12

It is estimated that logistics costs including transportation, distribution center operations, and order processing represent ________ of the retail price that you pay for a new car.

25 to 30%

Which of the following is TRUE about marketing channels?

Indirect channels are longer than direct ones.

__________ deals with decisions needed to move a product from the source of raw materials to consumption. (one word)

Logistics

Which two of the following are characteristic of multichannel marketing?

The goal is to attract, retain, and build relationships with buyers who use various channels. It is a blending of different communication and delivery channels.

________ must be balanced with the four customer service factors of time, dependability, communication, and convenience.

Total logistics costs

A marketing ________ consists of those individuals or firms involved in the process of making products available to consumers or industrial users.

channel

Which two best describe effective choices for designing a supply chain that meets customer requirements and aligns with strategy?

efficient responsive

Wholesalers are intermediaries who sell to

other intermediaries.

Channel conflict occurs between

two channel members.

A firm that would typically be called a(n) ________ in consumer markets would perform the same functions as a distributor in business markets.

wholesaler

________ makes possible the flow of goods from a producer, through intermediaries, to a buyer.

A marketing channel

Which of the following are intermediaries that have legal authority to act on behalf of a manufacturer? (Check all that apply.)

Agent Broker

________, as it pertains to a supply chain, is the ability to satisfy users in terms of time, dependability, communication, and convenience.

Customer service

Amazon and Orbitz are both part of _______ marketing channels.

Internet

Opentable.com is a reservation mechanism for restaurants. It uses the Internet to allow consumers to reserve tables in many places throughout the United States. It is an example of

Internet marketing channels.

________ costs like transportation and order processing of sales are a large part, estimated at 25 to 30 percent, of the retail cost of an automobile.

Logistics

Which two of the following combine to describe the objective of logistics management for a customer-driven supply chain?

Minimize logistics costs Maximize customer service

What is the correct term for marketing that exploits opportunities with both traditional intermediaries and online?

Multichannel marketing

________ are typically designed to be either responsive or efficient, depending upon a firm's strategy to meet customer requirements.

Supply chains

Which of the following are included in the inbound portion of the supply chain of a product? (Check all that apply.)

The supplier network The flow of raw materials and parts

Which of the following are true of wholesalers?

They share risk with the producers when they stock merchandise in anticipation of sales.

Which of the following are types of contractual vertical marketing systems?

Wholesaler-sponsored voluntary chains Franchising Retailer-sponsored cooperatives

A sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users is known as

a supply chain.

Choice of a marketing ______ by a producer might involve examining a number of factors, including coverage of the target market, buyer requirements, and profitability.

channel

Choosing a marketing ______ is a critical decision for a producer because not only does it provide a link to its buyers but also the means through which it implements various elements of its marketing strategy.

channel

Which of the following are types of vertical marketing systems?

contractual administered corporate

Under a ________ marketing system, independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.

contractual vertical

Wholesaler-sponsored voluntary chains and retailer-sponsored cooperatives are two types of ________ marketing systems.

contractual vertical

In the context of a supply chain, ____________ ____________ is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. (Enter one word in each blank.)

customer service

In the context of a supply chain, customer service is the ability of logistics management to satisfy users in terms of which of these?

dependability time convenience

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is known as

dual distribution.

GE sells its large appliances directly to home and apartment builders but uses retail stores like Lowe's to sell to consumers, in a strategy known as

dual distribution.

The 1 million ATM machines owned by Visa are an example of Visa's strategy to provide a(n) _______ distribution of cash.

intensive

The combination of a firm's supplier network and its marketing channel is known as

its supply chain.

Those activities that focus on getting right amount of the right products to the right place at the right time at the lowest possible cost are known as

logistics.

Intensive distribution means that a manufacturer places its product in _______ outlets.

many

Direct and indirect are types of

marketing channels.

The objective of logistics management in a customer-driven supply chain is to ________ while delivering ________

minimize logistics costs; maximum customer service

Vertical marketing systems are best described as

professionally managed and centrally coordinated marketing channels.

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is known as

reverse logistics.

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling are included in

total logistics cost.

The two types of channel conflict are

vertical and horizontal.

Firms that buy products from manufacturers and resell them to retailers are known as

wholesalers.