Principles of Marketing Test 2

When a single channel member manages an integrated marketing channel to achieve low-cost, effective distribution for satisfying target markets, ____ exists.

a vertical marketing system

A producer is not likely to receive ____ from an industrial distributor.

aggressive promotion of its brand

If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City?

airway

The supply chain includes

all entities that facilitate product distribution

In a corporate VMS,

all stages of the marketing channel are combined.

A single leader who controls and organizes a marketing channel is called a

channel captain

Piggyback , fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through

containerization

An important goal of logistics is maintaining or reducing costs while reducing

cycle time

Order processing is defined as

the receipt and transmission of sales order information.

Adam Marker is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

Agents

Will is trying to decide which shipping company to use to transport his custom-made furniture to customers. Will is facing a decision about

order delivery

Which of the following describes a disadvantage of using industrial distributors?

They are unlikely to handle bulky items or items that are slow sellers.

Which of the following is an advantage of using an industrial distributor?

They help reduce a producer's financial burdens by extending credit to customers.

If a retailer is reviewing its inventory and notices that the order lead time for one of the products it stocks has increased, the retailer should

increase its reorder point

When considering the best channel to use, all of the following are true with regard to larger firms except they

may be better suited to serve customers in a particular region.

What is typically the primary determinant in deciding how materials will be handled?

product characteristics

The supply chain begins with______________ and ends with_________________.

raw materials, customers

Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate?

organic foods

Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines—paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. Refer to Scenario 14.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.

direct, outsourcing