Marketing Ch. 12

In which country do Western companies have perhaps the greatest difficulty penetrating the very lengthy and complex channel system? a. Egypt b. Brazil c. Japan d. India e. China

Japan

Which of the following is an example of a horizontal marketing system? a. Nike does not own any factories that make athletic shoes but subcontracts with many manufacturers across southeast Asia b. Century Twenty One Relators has small offices owned and operated by local residents across America c. McDonald's sells its franchises to local owner/operators giving those who already are franchisees the first right of refusal to buy other locations d. McDonald's restaurants are place inside Walmart stores d. Apple installs Apple vending machines in malls, department stores, and airports

McDonald's restaurants are place inside Walmart stores

Which of the following describes a conventional distribution channel? a. a channel that has no intermediary level b. a channel containing one or more intermediary levels c. a channel that consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits d. a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

a channel that consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits

A direct marketing channel is _____ a. a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user b. a channel that has no intermediary level c. a channel containing one or more intermediary levels d. a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits

a channel that has no intermediary level

In which of the following situations is the channel a direct marketing channel? a. Mattress Plus sells Serta, Sealy, and private label brand mattresses to customers b. Walmart sells a variety of products from fresh produce to electronic merchandise c. a consumer buys a new Toyota at the dealership in her town d. a consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office e. Pandora charm bracelets sell the basic bracelet and individual charms at department stores, jewelry stores, and at kiosks in the mall

a consumer stops at Dunkin Donuts on the way to work to buy a dozen donuts for the office

Which of the following defines a channel level? a. a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments b. selecting, managing, and motivating individual channel members and evaluating their performance over time c. the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries d. a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer

a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer

Which of the following describes a contractual VMS? a. a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts b. a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity c. a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties d. a vertical marketing system that combines successive stages of production and distribution under single ownership - channel leadership is established through common ownership

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

A corporate VMS is _____ a. a vertical marketing system that combines successive stages of production and distribution under single ownership b. a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts c. a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity d. a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

a vertical marketing system that combines successive stages of production and distribution under single ownership

Which of the following is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties? a. horizontal marketing system b. contractual VMS c. corporate VMS d. administered VMS

administered VMS

______ involves the processes associated with selecting, managing, and motivating individual channel members and evaluating their performance over time a. disintermediation b. channel design c. channel management d. distribution planning e. logistics

channel management

Although channel members depend on one another, they often act alone in their own short-run best interests and might disagree on their respective roles and rewards. Such disagreements over goals, roles, and rewards generate _______ a. customer value b. conflict c. disintermediation d. power struggles e. horizontal disruption

conflict

One of the largest firms in the world is Coca-Cola, which sells its products all over the world in a variety of locations by controlling the manufacturer of the maple syrup, and then selling it only to licensed bottlers. Which type of vertical marketing system is this? a. contractual VMS the manufacturer-sponsored retailer franchise system b. horizontal marketing system c. contractual VMS manufacturer-sponsored wholesalers franchise system d. administered VMS e. contractual VMS service-firm-sponsored retailer franchise system

contractual VMS manufacturer sponsored wholesaler franchise system

A(n) ______ is a vertical marketing system that combines successive stages of production and distribution under single ownership a. corporate VMS b. horizontal marketing system c. contractual VMS d. administered VMS

corporate VMS

A distribution center is _______ a. managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers b. designed to receive goods from various plants and supplier, take orders, fill them efficiently and deliver goods to customers as quickly as possible c. the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system d. planning, implementing and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

Online music download services such as iTunes and Amazon Music have pretty much put traditional music-store retailers out of business. This is an example of the concept of ______ a. channel re-design b. vertical marketing systems c. disintermediaton d. exclusive distribution e. channel conflict

disintermediation

Originally consumers went to bookstores like Borders and B. Dalton to buy books. Amazon started shipping books to buyers who bought online, and then invited the Kindle to electronically "ship" books to the reader's device. This technology is defined as _______ of the channel by Amazon a. intensive distribution b. flow c. a franchise d. indirect marketing e. disintermediation

disintermediation

______ is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries a. marketing channel management b. disintermediation c. multichannel distribution d. supply chain management

disintermediation

Marketers, however, have traditionally focused on the downstream side of the supply chain, often referred to as the ______ channels, that look toward the customer a. reseller b. distribution c. demand d. supply chain e. customer

distribution

Distribution channel decisions are integrated into decisions about other variable within the marketing mix. In what way, however, are distribution decisions different from other mix decisions? a. the firm can find alternative channels of distribution easily b. firms pay too much attention to channel decisions c. distribution channel decisions tend to be long term when compared to decisions about other mix variables d. decisions can be changed more easily than the advertising strategy e. new products development operates independent of channel decisions

distribution channel decisions tend to be long term when compared to decisions about other mix variables

Coach products are sold in a carefully controlled number of locations across the world. Some locations are owned and managed by the firm and some are managed through other retailers. Which type of distribution strategy is Coach using? a. selective distribution b. franchise c. intensive distribution d. exclusive distribution e. a contractual VMS

exclusive distribution

Many producers of luxury items purposely limit the number of intermediaries handling their products in order to enhance perceptions of the premium quality of their goods, a practice known as _______ a. exclusive distribution b. selective distribution c. intensive distribution d. franchising e. vertical marketing systems

exclusive distribution

______ involves giving a limited number of dealers the exclusive right to distribute the company's products in their territories a. multichannel distribution b. exclusive distribution c. intensive distribution d. selective distribution

exclusive distribution

A(n) _____ is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity a. administered VMS b. horizontal marketing system c. contractual VMS d. corporate VMS

horizontal marketing system

Which of the following is a channel containing one or more intermediary levels? a. direct marketing channel b. marketing channel c. conventional distribution channel d. indirect marketing channel

indirect marketing channel

Producers of convenience products, such as bar soap and candy, typically seek to employ ______ distribution strategies a. territorial b. intensive c. exclusive d. selective e. responsive

intensive

_____ involves stocking the product in as many outlets as possible a. multichannel distribution b. selective distribution c. exclusive distribution d. intensive distribution

intensive distribution

There are many ways in which intermediaries in the marketing channel add value to the flow from raw materials to the final consumer. Why would the marketing manager avoid additional intermediaries in the channel structure? a. intermediaries make the transaction less expensive b. intermediaries broaden the assortment offered to customers c. intermediaries reduce the amount of work that must be done d. intermediaries buy in bulk and break into smaller, more manageable amounts for consumers e. intermediaries transform the goods into assortments that customers want

intermediaries make the transaction less expensive

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? a. it can expect a better-than-average selling effort from the channel member b. it yields better dealer support and customer service c. it provides consumer convenience d. it enhances a distinctive positioning e. it provides maximum brand exposure

it can expect a better-than-average selling effort from the channel member

Choosing to use multiple forms of resellers can add value to the consumer's purchase. However, increasingly more firms are looking to disinter-mediate the channel because longer channels can cause problems. Which of the following issues is an advantage of using the longer channel structure? a. it creates potential conflict between channel members b. it is more difficult for the producer to control marketing of the product c. it will cost more d. it tends to focus the targeting e. it is more difficult to control the channel flow

it tends to focus the targeting

All members of the channel help to create and perpetuate flow in many ways through to the final customer. Which of the following is an element of flow the marketing manager would avoid when using a longer channel? a. physical flow b. payment flow c. promotional flow d. manufacturing flow e. ownership flow

manufacturing flow

Which of the following is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user? a. direct marketing channel b. indirect marketing channel c. marketing channel d. conventional distribution channel

marketing channel

____ is selecting, managing, and motivating individual channel members and evaluating their performance over time a. disintermediation b. multichannel distribution system c. marketing channel management d. supply chain management

marketing channel management

American Standard Plumbing Supplies makes bathtubs, washbowls, toilets, and other items for the bathroom. To expand the firm's reach and offer greater service, it relied on wholesalers, retailers, and other resellers to help move the product toward the consumer. What are these intermediaries called? a. suppliers b. marketing channels c. direct marketing channels d. value delivery network e. indirect marketing channels

marketing channels

________, also called "physical distribution," involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit a. inventory management b. channel management c. multimodal transportation d. third-party distribution e. marketing logistics

marketing logistics

Big food, drug, and discount retailers, such as Safeway, Walgreens, and Target, but various types of candy bars by the truckload and stock it on their stores' shelves. In turn, you can buy a single Snickers bar along with a shopping cart full of other items when you visit the store. This example demonstrates how channel intermediaries contribute value by performing the ______ function. a. matching b. promotion c. negotiation d. financing e. physical distribution

matching

Intermediaries provide customers with greater utility in what manner when they shape offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging? a. contacting b. promoting c. financing d. matching e. negotiation

matching

In setting the channel objectives, they should be stated in terms of targeted levels of customer service. There are many elements that influence ho those objectives are set. Which of the following factors does the marketing manager typically avoid when determining the firm's channel objectives? a. maximization of total channel cost b. the nature of the marketing intermediaries c. the nature of the products and their perishability d. economic conditions e. the nature of the company

maximization of total channel cost

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? a. horizontal marketing system b. multichannel marketing c. franchise d. a contractual VMS e. contractual VMS manufacturer-sponsored wholesaler franchise

multichannel marketing

Piggyback and fishyback are forms of what logistics element? a. electronic data interchange (EDI) b. integrated logistics management c. just-in-time logistics d. multimodal transportation e. pipelines

multimodal transportation

Once a firm has defined its channel objectives, it should identify its major channel alternatives in three dimensions. Those dimensions include the types of intermediaries, the ______ of intermediaries, and the responsibilities of each channel member. a. cost b. number c. longevity d. economic condition e. image

number

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? a. Wendy's franchisees are unhappy with the price the mandated butcher charges for shipping hamburgers to each store b. 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 c. Apple sells iPhones at Costco and orders them to not use the brand as a reference price to trade buyers down to cheaper brands d. Johnie Walker Black has provided all stores carrying the scotch with life-size 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 e. 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%

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

Which of the following describes a multichannel distribution system? a. giving a limited number of dealers the exclusive right to distribute the company's products in their territories b. one in which a single firm sets up two or more marketing channels to reach one or more customer segments c. the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products d. stocking the product in as many outlets as possible

one in which a single firm sets up two or more marketing channels to reach one or more customer segments

Most companies see their intermediaries as first-line customers and partners. They employ a(n) _____ approach to forge long-term partnerships with channel members a. contractual VMS b. corporate VMS c. supplier development d. partner relationship management e. administered VMS

partner relationship management

Most companies see their intermediaries as first-line customers and then subsequently partners in the creation of a value delivery system that meets the needs of both the company and its marketing partners. What is the system advised for long-term arrangements with channel members? a. exclusive dealing b. tying agreement c. full-line forcing d. partner relationship management e. exclusive territorial agreement

partner relationship management

Marketing logistics is ______ a. the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system b. planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit c. designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible d. managing upstream and downstream value - added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

An important element of managing the channel id designing its structure from the outset. Four of the following are significant factors in channel design. Which of the following factors does the marketing manager want to avoid when designing the channel? a. setting objectives for the channel b. identifying major channel alternatives c. pricing the product d. analyzing consumer needs e. evaluating channel alternatives

pricing the product

A company designs a logistics system that will minimize the cost of attaining the firm's distribution objectives. There are traditional four major functions of the logistics systems. From the following, identify the function that plays a role in decision making other than logistics design. a. inventory management b. logistics management information c. pricing the products d. transportation e. warehousing

pricing the products

______ refers to processes that make it easier and more efficient for customers and resellers to reuse, recycle, refurbish, or dispose of broken, unwanted, or excess products a. reverse logistics b. outbound logistics c. green supply chain d. logistics information management e. inbound logistics

reverse logistics

_______ is the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products a. selective distribution b. intensive distribution c. exclusive distribution d. multichannel distribution

selective distribution

Producing a product or service and making it available to buyers required building relationships with upstream and downstream partners, which are known together as the ______ a. distribution channel b. market channel c. supply chain d. demand chain e. value delivery network

supply chain

_____ is managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers a. supply chain management b. channel level c. marketing channel management d. disintermediation

supply chain management

How is integrated logistics management defined? a. an independent logistics provider that performs nay or all of the functions required to get a clients product to market b. the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system c. managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers d. planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system

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? a. the negotiator and the financier b. the consumer and the financier c. the producer and the financier d. the consumer and the reseller e. the producer and the final consumer

the producer and final consumer

Selective distribution is ______ a. the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products b. stocking the product in as many outlets as possible c. a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments d. giving a limited number of dealers the exclusive right to distribute the company's products in their territories

the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products

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 Logistic, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called? a. cross-functional, cross-company teams b. shared projects c. integrated logistics management d. vendor-managed inventory (VMI) e. third-party logistics (3PL) providers

third-party logistics (3PL) providers

Which term refers to an independent logistics provider that performs any or all of the functions required to get a client's product to market? a. third-party logistics provider b. supply chain management c. marketing logistics provider ' d. integrated logistics management

third-party logistics provider