Chapter 13 Marketing
moves goods from the producer to a retailer and then to the consumer. This channel is typically used by large retailers because it allows them to buy in quantity from manufacturers.
Channel B
Customers receive the benefits of form utility from an intermediary when _______.
a retailer offers to add a monogram to a product
Aramis Corporation sells hammers and other tools to Blue's Hardware Store. Suppose that Aramis, which is the only supplier of a specific type of hammer that Blue's sells, informs Blue's that it will have to purchase certain other products from Aramis if it wants to continue receiving the hammers. Blue's owner is dismayed because these other products are costly. It has no customers for these products. Aramis is attempting to get Blue's to enter into _______.
a tying agreement
Corinne works in procurement for a major electronics company. One of her challenges is ensuring that raw metals, such as tungsten, coltan, and tantalum, are not being sourced from mines whose profits are used to finance war lords and terrorists. She's very excited to work with a new company that uses _______, an incorruptible digital recordkeeping system to track these precious metals from mine to manufacturer to ensure they are not "conflict metals."
blockchain
an incorruptible digital record keeping system
blockchain
Large manufacturers such as Procter & Gamble are typically able to have control over how their products are promoted and sold in different retail outlets. Due to this control, Procter & Gamble is likely a channel _______.
captain
the most direct movement of products from producer to consumers. The internet has become critical in this type of channel. It helps firms sell directly to consumers online using a direct to consumer (D2C) strategy.
channel A
takes goods from the producer to a wholesaler, then to a retailer, and then finally to the consumer. It is a practical option for producers who sell to thousands of customers through thousands of retailers.
channel C
Which channel includes goods passing from producer, to agents, to wholesalers, to retailers, and finally to consumers?
channel D
where goods pass from producer, to agents, to wholesalers, to retailers, and then finally to the consumer. This channel is typically used for products intended for mass distribution, like foods.
channel D
Which channel is the direct channel for business products?
channel E
the dominant leader of a marketing channel or a supply channel
channel captain
Snap-on Tools uses a franchise model to sell shop equipment products to customers. When Snap-on developed a website that sold tools directly to consumers, this likely caused _______ with franchisees, which would likely increase if Snap-on reaches an agreement to sell through Home Depot as well.
channel conflict
Suppose you roast coffee and sell it to Maximum Markets. You have a good relationship with Maximum Markets and have relied on them for many years to display your coffees in their stores. Your marketing chain has been relatively short, going from you (the producer) to the reseller (Maximum Markets) to the end consumer. However, you recently received an offer to sell your coffee in other retail stores, some that compete directly with Maximum Markets. You also would like to start selling directly through your website. You decide to provide discounts for coffee sold online. Integrating more channel members and selling to customers directly is likely to cause _______ with Maximum Markets.
channel conflict
the ability of one channel member to influence another member's goal achievement
channel power
time needed to complete a process
cycle time
If Kellogg's is forcing its retailers to place its cereals in prime locations on the shelves so customers can see them easier than the competition, it would be _______.
demonstration channel power
Delivering content through the internet to a computer or other device; Netflix delivers TV shows directly to your mobile devices.
digital distribution
delivering content through the internet to a compute or other device
digital distribution
large, centralized warehouses that focus on moving rather than storing goods
distribution centers
American Eagle allows shoppers to buy its clothing through its stores or through its website, ae.com. This is an example of _______.
dual distribution
Companies have been using computer technology to integrate order processing with production, inventory, accounting, and transportation in a system referred to as _______.
electronic data interchange (EDI)
a computerized means of integrating order processing with production, inventory, accounting, and transportation
electronic data interchange (EDI)
Which factor of selecting a marketing channel considers new government regulations?
environmental forces
An arrangement under which a producer forbids an intermediary to carry products made by competing manufacturers is called _______.
exclusive dealing
Fila Sports Oceania is a subsidiary of an Italian company that owns apparel rights for certain teams in the Australian Football League. Fila introduced a policy in which retailers could not feature Fila products in the same stores as other licensed products from its rivals. The Australian Competition and Consumer Commission ruled this as anticompetitive. Fila was most likely forcing its retailers into _______.
exclusive dealing
a situation in which a manufactuere forbids an intermediary from carrying products of competing manufacterers
exclusive dealing
Which of the following levels of market coverage entails utilizing only one dealer within a relatively large geographic area? (Roles Royce)
exclusive distribution
__________ is suitable for products consumer over a long period of time
exclusive distribution
Which of the following is most likely to use exclusive distribution?
ferrari
created when the company converts raw materials into finished goods and services; Soda makers mix just the right amounts of flavoring, sweeteners, and carbonation to deliver appealing drinks.
form utility
organizations that consolidate shipments from several firms into efficient lot sizes
freight forwarders
SimpleTech is a startup that offers a line of smart technology products that integrate with Alexa and Google Assistant. Although its first products—smart electrical outlets and light switches—did very well, SimpleTech is facing some challenges getting its latest products into retail stores. The company's president wants to require retailers to purchase its entire product line in order to be able to order the electrical outlets and light switches. The company's legal counsel is recommending against this action because the courts have often rejected such agreements. SimpleTech is attempting to adopt _______.
full-line forcing
When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it _______.
has channel power
In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______.
horizontal channel integration
combining organizations at the same level of operation under one management
horizontal channel integration
If PetSmart began to acquire very successful local pet stores, this would be an example of _______.
horizontal integration
Grainger is an industrial supply company selling equipment from manufacturers and selling the equipment to manufacturing companies. Grainger takes title and carries inventory of the products it sells. Grainger is an example of a(n) _______.
industrial distributor
Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______.
industrial distributor
an independent business organization that takes title industrial products and carries inventories
industrial distributor
When Coke Zero was added to the line of Coca-Cola products, it most likely was introduced using _______ distribution.
intensive
Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. What type of market coverage is Redbox most likely to use?
intensive distribution
Which of the following levels of market coverage is most appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues? (pepsi)
intensive distribution
two or more transportation modes used in combonation
intermodal transportation
Dell Computer and Harley Davidson are well known for their use of the just-in-time (JIT) approach. To which of the following logistics activities does the JIT approach belong?
inventory management
JanSport offers a line of backpacks in a variety of styles and sizes. The company needs to make sure it has an adequate assortment of backpacks available to meet customer demand as part of the _______ stage of logistics.
inventory management
Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Redbox kiosks keep track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays it uses to supply the kiosks based on this information. These activities most likely fall under which of the following?
inventory management
What is the process called for developing and maintaining adequate assortments of products to meet customers' needs?
inventory management
developing and maintaining adequate assortments of products to meet customers' needs
inventory management
Within its supply chain, Walmart establishes channel policies and coordinates development of the marketing mix. Walmart most likely _______.
is a channel captain
an inventory management approach in which supplies arrive just when needed for production or resale
just in time (JIT)
Alicia is a product manager for a computer manufacturer and has decided to improve its inventory management. She is working with suppliers to wait to purchase materials right before they are needed in production so she can keep the levels of inventory low. She is suggesting a(n) _______ approach.
just-in-time (JIT)
Which of the following companies and their products would most likely use intensive distribution?
kimberly-clark paper based products
Pierre runs a grocery store and is working with his suppliers in the planning and implementation of the flow of products from the manufacturer to his store. The goal is to make the transportation and storage of products more efficient and effective. He is engaging in _______.
logistics management
Which of the following involves planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants?
logistics management
Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______.
manufacturer's agent
a channel that includes both a __________ and an __________ is appropriate when the producer wants to cover a large geographic area but has no sales force
manufacturer's agent, industrial distributor
What is a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain?
marketing channel
physical handling of tangible goods, supplies, and resources
materials handling
freight transportation firms that provide several modes of shipment
megacarriers
Using a variety of marketing channels to ensure maximum distribution; Nike sells the same model of shoes in its stores and through Walmart.
multichannel distribution
Which type of channel variation uses a variety of marketing channels to ensure maximum distribution?
multichannel distribution
the use of a variety of marketing channels to ensure maximum distribution
multichannel distribution
The total set of managerial activities used by an organization to transform resource inputs into products, services, or both
operations management
What is the receipt and transmission of sales order information?
order processing
the receipt and transmission of sales order information
order processing
Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a movie while out shopping for food or other supplies. Based upon this, what type of utility do Redbox's kiosks offer to consumers?
place utility
created when consumers find goods and services where they want to purchase them; Redbox places its kiosks for renting movies and games in high-traffic spots like supermarkets and drugstores
place utility
the increased value of a product that is created as its ownership is transferred; When you buy a TV and take it home, you receive the value that comes from taking ownership of the product
possession utility
Carlos works at Kellogg's and is on a team developing a new breakfast cereal. He is currently trying to contact different companies who can provide the specific ingredients and equipment needed to make the cereal. He will work with the procurement department to reach an agreement with the companies selected to provide the ingredients and equipment. Carlos is currently engaging in _______.
procurement
Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Shane is in charge of working with movie studios and third-party distributors to purchase DVDs and Blu-ray discs to be made available through the kiosks. His only responsibility is to procure the movies and video games for the different kiosks. Purchasing specifically falls under _______.
procurement
the process to obtain resources to create value through sourcing, purchasing, and recycling including materials and information
procurement
When you buy a new backpack from LLBean.com, which of the following consumer marketing channels are you using?
producer to consumer
Kraft sells its macaroni and cheese through thousands of retailers across the country. Which of the following marketing channel structures is Kraft most likely to use?
producer, wholesaler, retailer, and consumer
storage space and related logistics facilities that can be leased by companies
public warehouse
Uniqlo has adopted a system that employs tags and readers to identify and track materials tagged with special microchips through every phase of handling. This system is dramatically improving inventory control and equipment tracking while also thwarting distribution of counterfeit Uniqlo branded clothing. This system is best described as _______.
radio frequency identification (RFID)
a system of tags and readers that use radio waves to identify and track materials tagged with special microchips
radio frequency identification (RFID)
Carlos is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Carlos use?
railroad
Which practice allows producers the right to choose or reject the channel member with which they will do business?
refusal to deal
Gucci sells its handbags through its company-owned stores and through a handful of high-end department store chains like Neiman Marcus and Saks Fifth Avenue. Gucci is using _______ distribution.
selective
using only some available outlets in an area to distribute a product (HBO & game of thrones)
selective distribution
an agreement whereby the products of one organization are distributed through the marketing channels of anoterh
strategic channel alliance
Products of one organization are distributed through the marketing channels of another; Casper mattresses has expanded beyond its consumer direct model by partnering with West Elm, a high-end furniture company with established brick-and-mortar stores
strategic channel alliances
Firms that are "upstream" in the supply chain include
suppliers
all the organizations and activities involved in the upstream and downstream flow of providing products to customers. Assessment question
supply chain
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of _______.
supply chain management
Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer?
target
firms that have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently
third party logistics firms
BSNF Logistics is an organization that companies can use to help with their logistics needs. BSNF touts its strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______.
third-party logistics
Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______.
time utility
created when consumers find goods and services when they want to purchase them; UPS offers Next Day Air delivery so consumers can get products quickly, if needed
time utility
is the most expensive logistics function.
transportation
A practice where an agreement states that a supplier provides a product to a channel member with the condition that the channel member must purchase other products as well is known as what?
tying agreements
Redlands Distributing wants to carry Tide detergent products made by Procter & Gamble (P&G). P&G agrees, but only if the supplier also purchases P&G's entire line of detergents such as Gain and Cheer. If this were to occur, Procter & Gamble would be engaging in which of the following channel management practices?
tying agreements
When launching its Dove Men+Care line of men's skin care products, Unilever told its distributors that they had to carry the new line if they still wanted to carry the rest of the Dove line of products. They would have been engaging in which of the following channel management practices?
tying agreements
In addition to producing the popular iPod and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _______.
vertical channel integration
combining two or more stages of the marketing channel under one management.
vertical channel integration
a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers
vertical marketing system
company-owned facilities for storing and shipping their own products
warehouses
Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates?
warehousing
firms that are "downstream" include
wholesalers and retailers