Marketing Ch 14

Channel conflict occurs when: _______________.

-There is increased use of multiple channels has increased the chance for miscommunication and conflict - Self-interest creates misunderstanding about role expectations of channel members -Communication is poor between channel members

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using ___________ and Red Box is using ___________.

A direct-marketing channel; a type of retailer

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of _________.

A strategic channel alliance

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

Aggressive promotion of its brand

Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel ________.

Captain

Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of ___________.

Channel conflict caused by inefficient communication between channel members

All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is _________.

Customer relationships

The driving force behind marketing channel decisions should be _________.

Customer satisfaction

The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service is competing with UPS and FedEx in terms of ___________.

Cycle time

A marketing channel is defined as a group of individuals and organizations that __________.

Directs the flow of products from producers to customers

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of __________.

Dual distribution

River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n) __________.

Industrial distributor

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called _________.

Just-in-Time (JIT)

Josh is a vice-president for 20th Century Fox, a movie production company. He has the responsibility for managing the firm's marketing channels and its relationships with its marketing intermediaries. As a manager of its marketing intermediaries, part of Josh's role is to ___________.

Link firm producers to other middlemen

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n) ________.

Manufacturers' agent

When selecting a marketing channel, which of the following are criteria that must be considered by your firm?

Marketing environmental factors, competition, product attributes, characteristics of intermediaries, type of organization, customer characteristics

If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using _________.

Outsourcing

Supply chains for durable goods typically begin at ___________ and end at ___________.

Raw materials; the customer

All of the following are concepts used in a just-in-time inventory management system except ________.

Safety stock is kept to reduce stockout

The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products

Selective

Anya, sales manager for Pacific Lumber, tells Ricardo, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?

Stockout

Tying agreements occur when a _________.

Supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

A set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time is called _________.

Supply Chain Management

Possession utility is best described as _______.

The customer having access to the product to use now or store and use later

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to __________.

Tighten its control over distribution of its products

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except __________.

Tightly controlled and bureaucratic management style

Exclusive Distribution-

Uses a single outlet in a fairly large geographic area to distribute a product and is typically used for infrequently purchased products, consumed over a long period of time, or requiring service and information.

Intensive Distribution-

Uses all available outlets to distribute a product, typically used for convenience products and will usually employ multiple channels

Selective Distribution-

Uses only some available outlets to distribute a product, typically for shopping products.

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called ___________.

exclusive dealings

Vertical channel integration _________.

is made possible by purchasing the operations of a link in the channel

The best way to reduce overall distribution costs is to _________.

use of total- cost approach to analyze and evaluate the entire system