BUSML 3250 Chapter 12
________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. A. Corporate B. Contingent C. Aligned D. Administered E. Contractual
Administered
In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. corporate VMS administered VMS horizontal marketing system contractual VMS conventional VMS
Administered VMS
Which of the following should be a manufacturer's first step when designing an effective marketing channel? evaluate channel alternatives analyze consumer needs establish strategic alliances identify channel alternatives set channel objectives
Analyze consumer needs
A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. A. customer franchise B. resource bank C. channel level D. product platform E. contact center
Channel level
A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone. corporate contingency contractual conventional communal
Contractual
In a channel, one or more independent producers, wholesalers, and retailers is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. This type of channel is described as what kind of distribution system? Horizontal Administered VMS Contractual VMS Conventional Corporate VMS
Conventional
A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole. product platform intrinsic market matrix resource bank multitiered supply chain conventional distribution channel
Conventional distribution channel
A ________ VMS integrates successive stages of production and distribution under single ownership. A.contractual B.conventional C.communal D.contingency E.corporate
Corporate
Which of the following is a major type of vertical marketing system? A. extrinsic B. corporate C. multilevel D. conventional E. intrinsic
Corporate
Which of the following is a disadvantage of adding new channels in a multichannel distribution system? Reducing opportunities for franchising Minimizing publicity needs Decreasing control over the system Lowering sales and market coverage Decreasing complexity of markets
Decreasing control over the system
In a(n) ________ channel, the same member both produces and distributes a product or service to consumers. tiered direct platform exclusive vertical
Direct
Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought online, and then invented the Kindle to electronically "ship" books to the reader's device. This technology is defined as ________ of the channel by Amazon. flow indirect marketing disintermediation intensive distribution a franchise
Disintermediation
The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________. indirect marketing intensive distribution disintermediation franchising exclusive distribution
Disintermediation
________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customer as quickly as possible. Loading docks Shipping platforms Product platforms Distribution centers Open warehouses
Distribution centers
Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? Resource banks Supply channels Factory-supply networks Downstream partners Upstream partners
Downstream partners
The ___________ organization is the most common type of contractual relationship. Conventional Multi-national Franchise Horizontal Entrepreneurial
Franchise
Why do firms have difficulty accessing potential market areas in developing countries, such as China and India? Anti-globalization efforts Highly centralized rural markets High operating costs Inadequate distribution systems Limited manpower
Inadequate distribution systems
A marketing channel that consists of one or more intermediaries is known as a(n) _________ marketing channel. Cyclic Upstream Looped Indirect Direct
Indirect
Producers of convenience products, such as bar soap and candy, typically seek to employ __________ distribution strategies
Intensive
________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible. Direct Intensive Inclusive Exclusive Selective
Intensive
Apple uses selective distribution for several reasons such as the ability to develop good working relationships with selected channel members and for what other reason? It enhances a distinctive positioning. It yields better dealer support and customer service. It provides maximum brand exposure. It provides consumer convenience. It can expect a better-than-average selling effort from the channel member.
It can expect a better-than-average selling effort from the channel
For which product would a company use an exclusive distribution strategy? Newspapers Soft drinks Dairy products Chewing gum Luxury cars
Luxury cars
Ford and its network of independent franchised dealers is an example of a ________. service-firm-sponsored equity strategic alliance manufacturer-sponsored retailer franchise system service-firm-sponsored retailer franchise system manufacturer-and-service-sponsored joint venture manufacturer-sponsored wholesaler franchise system
Manufacturer-sponsored retailer franchise system
From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers. Marketing intermediaries third-party logistics price consultants upstream partners factory supervisors
Marketing intermediaries
________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers. Manufacturer sellers Manufacturers' agents Selling agents Brokers Merchant wholesalers
Merchant wholesalers
A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments. Administered vertical marketing Corporate vertical marketing Multi-channel distribution Conventional distribution Horizontal marketing
Multi-channel distribution
Apple Computer sells its products such as iTunes and iMovies online, and sells its hardware through its own stores and through other retailers, such as Best Buy and Costco, and through vending machines. How is the Apple distribution system described? Contractual VMS manufacturer-sponsored wholesaler franchise Horizontal marketing system Multichannel marketing A contractual VMS Franchise
Multichannel marketing
Piggyback and fishyback are forms of what logistics element? Pipelines Integrated logistics management Just-in-time logistics Electronic data interchange (EDI) Multimodal transportation
Multimodal transportation
Channel members depend on one another, but they often act alone in their own short-run best interests and often disagree on who should do what and for what rewards. Which of the following best illustrates horizontal conflict? -Wendy's franchisees are unhappy with the price the mandated butcher charges for shipping hamburgers to each store. -One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but due to its excellent location, it benefits from the increased traffic generated by the ads. -Johnnie Walker Black has provided all stores carrying the scotch with life-sized cutouts of Pierce Brosnan and at Bill's liquors, the staff has taken four of the cutouts and requests additional promo items be shipped to them. -Due to a shortage of hazelnuts, Nutella cannot get sufficient raw material to make its spread and has told Walmart and Costco the total number of packages to be shipped for the next quarter will be reduced by 25%. -Apple sells iPhones at Costco and orders them to not use the brand as a reference price to trade buyers down to cheaper brands.
One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but does to its excellent location, it benefits from the increased traffic generated by the ads
In intermodal transportation, which of the following describes the use of both rail and trucks for transportation? trainship fishyback piggyback airtruck drawbar
Piggyback
________ or smart tag technology helps companies locate a product's exact position within its supply chain. RFID BCODE PRM VMS 3PL
RFID
Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________. cross merchandising disintermediation inbound logistics diverse logistics reverse logistics
Reverse logistics
________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. Indirect Corporate Intensive Selective Exclusive
Selective
Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online? pop-up shopping wheel-of-retailing off-price retailing showrooming wholesaling
Showrooming
For which of the following products would the intensive distribution strategy most likely be used? A. soft drinks B. high-end cameras C. luxury cars D. lawn mowers E. furniture
Soft drinks
______ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. Supply chain Customer Product cycle Cross Price
Supply chain
Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player roles? The producer and the final consumer The consumer and the financier The producer and the financier The consumer and the reseller The negotiator and the financier
The producer and the final consumer
Because logistics is complicated and viewed as a hassle by many firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as Ryder, Penske Logistics, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called?
Third-party logistics (3PL) providers
Using ________, retailers can share real-time data on sales and current inventory levels with suppliers. Transportation management systems (TMS) Automated storage and retrieval systems (ASRS) Vendor-managed inventory (VMI) systems Warehouse management systems (WMS) Distribution center management systems (DCMS)
Vendor-managed inventory (VMI) systems
A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system. horizontal Vertical multitiered equilateral communal
Vertical
Conflict that occurs between different levels of the same marketing channel is known as ________ conflict. Communal Equilateral Horizontal Vertical multitiered
Vertical