ch 15 MAR

What two statements are TRUE regarding multichannel marketing?

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

Compared to marketing channels for consumer products, business channels exhibit what characteristics? (Select all that apply)

- The channel tends to rely on one intermediary or none at all. - The channel is typically shorter.

What are two examples of a direct to consumer marketing channel?

- buying something from the Home Shopping Network - ordering something from the Harry and David food and gift catalog

What statement is TRUE about marketing channels?

Indirect channels are longer than direct ones.

Which two laws are most important to consider in channel management?

The Clayton Act The Sherman Act

Logistics involves ______.

activities that focus on getting the right products to the right place at the right time at the lowest possible cost

Each intermediary in the marketing channel ______.

adds value in terms of the functions it performs

What channel intermediary does not take title to products, but instead brings a seller and buyer together?

agent

What two intermediaries have legal authority to act on behalf of the manufacturer?

agent broker

Disintermediation is a vertical conflict between the channel partners where one channel member _______ another to buy or sell a product ________.

bypasses; directly

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

Using a channel captain with expertise, or economic influence can help to manage ______.

channel conflict

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, ________ arises.

channel conflict

A(n) ________ channel allows ultimate consumers to deal with producers instead of intermediaries for purchases.

direct

When an individual attempts to sell her handcrafted jewelry at an art fair, this is is an example of a(n) ________ channel of distribution.

direct

________ channels are employed for business products when buyers are large and well-defined, the sales effort requires extensive negotiations, and the products are of high unit value and require hands-on expertise for installation or use.

direct

What are the two types of marketing channels?

direct indirect

When a wood furniture manufacturer has his unique shop attached to his plant, and sells from that space, as well as via catalog and the Internet, it is an example of ______.

direct channel

Logistics management includes which two of these?

flow of raw materials and parts flow of finished products

Ford licenses its dealers to sell cars subject to specific sales and service conditions under its ______.

franchise agreement

What are the steps involved when aligning a supply chain with a marketing strategy?

harmonize the supply chain with the marketing strategy understand the supply chain understand the customer

The management at Target stores was angry with Goodyear Tire Company about its decision to also sell its brand through Walmart. This is an example of ______.

horizontal channel conflict

When franchisees like car dealerships believe they are located too close to each other, ______ might arise.

horizontal channel conflict

A(n) channel has intermediaries between the producer and consumers that perform various channel functions.

indirect

The individuals or firms involved in the process of making products available to consumers or industrial users are referred to as ______.

marketing channels

Which items should be considered as part of total logistics cost? (Select all that apply)

materials handling and warehousing order processing

What is the correct term for marketing that integrates opportunities by using both traditional intermediaries and electronic ones?

multichannel marketing

Multichannel marketing is also referred to as ______ marketing.

omnichannel

A strategic channel alliance involves ______.

one firm's marketing channel being used to sell another firm's products

In exclusive distribution, how many retailers are used for a specified geographical area?

only one

What two terms reflect the time between ordering an item and when it is received and ready for use or sale?

order cycle replenishment time

Wholesalers are intermediaries who sell to ______.

other intermediates

Which of the following degrees of distribution weds some of the market coverage benefits of intensive distribution to the control over resale evident with exclusive distribution?

selective distribution

In the context of a supply chain, customer is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

service

In administered vertical marketing systems, coordination is achieved through one channel member influencing another, often based on ______.

size

When one firm's marketing channel is used to sell another firm's products it is known as a(n) ______.

strategic channel alliance

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 ______.

supply chain

When it comes to selecting a marketing channel, what is the critical dimension of profitability?

willingness of channel members to share channel costs

Why might an efficient supply chain, rather than a responsive supply chain, fail to meet Dell's target market desires for a wide variety of customizable products?

An efficient supply chain might emphasize economies of scale that would reduce the variety of configurations offered.

Supply chain customer service depends on ________, which can be improved by implementing practices like sending status reports on orders.

communication

A retailer is an intermediary that sells to ______.

consumers

What are the three major types of vertical marketing systems?

contractual corporate administered

In the context of a supply chain, customer service is the ability of logistics management to satisfy users based on what factors? (Select all that apply)

convenience time dependability

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

Business firms that use a direct channel ______.

maintain their own sales force

What are three types of franchise arrangements?

manufacturer-sponsored retail service-sponsored retail manufacturer-sponsored wholesale

What are the three functions performed by intermediaries in a marketing channel?

transactional functions logistical functions facilitating functions

A direct channel is one that moves a product from the manufacturer to a consumer ______.

without a retailer

Which of the following are true about supply chains?

Choice of a supply chain should reflect customer needs. Managers must often make trade-offs between efficiency and responsiveness of their supply chains.

What is the purpose of a marketing channel?

It makes possible the flow of products and services from a producer, through intermediaries, to a buyer.

If a manufacturer is trying to determine which channel and intermediaries they prefer to use for selling a product, what factors should they definitely consider? (Select all that apply)

Which will best satisfy the buying requirements of the target market? Which will provide the best coverage of the target market? Which will be the most profitable?

Disintermediation involves ______.

a channel member bypassing another member to sell or buy product directly

A vendor-managed supply system relates to what customer service factor of a supply chain?

convience

The combination of successive stages of production and distribution under a single ownership defines which vertical marketing system?

corporate

A manufacturer that also owns distribution centers and retail outlets is an example of a _______ marketing system.

corporate vertical

Estee Lauder manufactures MAC cosmetic products and also owns the MAC retail stores. This is an example of a ________ marketing system.

corporate vertical

In general, producers can choose whomever they wish distribute their product so long as the choice does not ______.

create an unfair competitive situation

Manufacturers often use intermediaries to distribute their products because intermediaries ______.

create value for buyers

One aspect of supply chain customer service is ________, the consistency of replenishment.

dependability

Amazon and Orbitz are both part of _______ marketing channels.

digital

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

digital marketing channel

What marketing channel allows consumers to buy products by interacting with various print or electronic media instead of a face-to-face meeting with a salesperson?

direct to consumer marketing

When a producer of kitchen appliances, decides to terminate its distributors and sell directly to retailers, it is an example of ______.

disintermediation

What term refers to the number of stores in a geographic area in which products are placed?

distribution density

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

Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods, so the company has opted for a(n) ________ supply chain.

efficient

Typically chosen for specialty products and services, _______ distribution allows only one retailer in a specific geographic region to carry the firm's products.

exclusive

When Martha Stewart's products are found only at Macy's, it is an example of ________ distribution.

exclusive

Providing financing, grading products, and providing marketing information and research are ________ functions of intermediaries.

facilitating

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

intensive

______ distribution places products and services in as many outlets as possible.

intensive

What are the three degrees of distribution density considered by manufacturers?

intensive exclusive selective

________ add value by performing transactional, logistical, and facilitating functions.

intermediates

A current emphasis in supply chain management is to reduce order cycle time so that ______.

inventory levels of customers can be minimized

The best choice of supply chain is one that is in line with the company's marketing strategy and ______.

is consistent with the needs of the customer segment being served

A business channel is characterized by the fact that ______.

it tends to be shorter than consumer channels

Walmart achieves efficiency in its supply chain by ______.

keeping most items for sale stocked in its stores

Assorting, storing, sorting, and transporting are ________ functions of intermediaries.

logical

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirement is known as ______.

logistics management

What are two benefits associated with reverse logistics?

lowered operating costs for companies reduced waste in landfills

The margins earned for each channel member and for the channel as a whole determines ______.

profitability

Using electronic data and inventory systems to make the process of reordering and receiving products as simple as possible is known as a(n) ______.

quick response delivery system

What intermediary sells specifically to consumers?

reatiler

Many logistics costs are interrelated; for example, increasing inventory costs with additional warehouses should result in ______.

reduced transportation costs

A quick response delivery system increases the efficiency of which process?

reordering

Dell's target market desires rapid delivery and a wide variety of customizable products, so the company has opted for a(n) ________ supply chain.

responsive

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 ______ logistics.

reverse

Which three are elements of dependability, one of the factors of supply chain customer service?

safe delivery consistent lead time complete delivery

Dell chose ______ distribution when it decided to sell its products through Walmart, Best Buy, and Staples, in addition to its direct channel.

selective

In which form of distribution intensity will firms use only a few retailers in a specific geographical area to carry its products?

selective

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

supply chains

Carlos' firm manufactures custom-made furniture that is sold through various furniture retailers. Carlos sources the wood he needs from various lumber manufacturers and uses a distributor to get his products to the retail stores for sale. The suppliers of the wood, the distributor, and the retail stores are all part of a ______.

supply channel

Decisions regarding which two factors affect the selection of a marketing channel and intermediaries?

target market coverage buyer requirements

A corporate vertical marketing system is described as ______.

the combination of successive stages of production and distribution under a single ownership

An administered vertical marketing system is described as ______.

the coordination of production and distribution through the size and influence of one channel member

In choosing a supply chain, it is important to make sure that what the supply chain is capable of doing well is consistent with what two things?

the firm's marketing strategy the targeted customer's needs

One or more intermediaries between ________ defines an indirect channel of distribution.

the manufacturer and the consumer

Reverse logistics is ______.

the process of product returns, recycling and material reuse, and waste disposal

When designing a supply chain that meets customer requirements and aligns with strategy, what are the two goals that firms try to achieve?

to be more responsive to be more efficient

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

total logistics cost

In what ways does a channel captain manage potential conflict?(Select all that apply)

using economic influence using a legitimate right using expertise

When the supplier determines the product amount and assortment a customer needs and automatically delivers the appropriate items, it is known as a _______ inventory system.

vendor managed

The two types of channel conflict are ______.

vertical horizontal

Professionally managed and centrally coordinated marketing channels that are designed to achieve channel economies and maximize marketing impact are known as ______.

vertical marketing systems

A(n) _______ buys products from manufacturers and resell them to retailers.

wholesaler