Marketing Exam 4 Chapter 10

Supply chain accounts for nearly ___% of a products cost

75

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

Selective distribution

Disagreements among marketing channel members on goals, roles, and rewards

channel conflict

Channel decisions: Can lead to ______ ______.

competitive advantage

a marketing channel that has no intermediary level.

direct marketing channel

What is the most common type of a contractual​ VMS?

franchise

Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to consumption

marketing logistics

raw materiel, parts supplier, manufacturer, reseller, consumer is the _____ ______.

supply chain

Channel members add value by bridging the major _______________, _________________, and __________________________ gaps that separate goods and services from users.

time, place, and possession

_________ conflict occurs between different levels of the same channel. (KFC parent company and its franchise operations)

vertical

Consists of one or more independent producers, wholesalers, and retailers and Each member is a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.

Conventional distribution channel

is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.

Integrated logistics management

__________ is stocking the product in as many outlets as possible.

Intensive distribution

Which of the following is a reason that producers use marketing channels and channel​ intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Which technology could one day make the entire supply chain intelligent and​ automated?

Radio frequency identification

What are the four major functions of​ logistics?

Warehousing, inventory​ management, transportation, logistics information management

Which of the following is an example of horizontal channel​ conflict?

a Ford dealer complaining that another Ford dealer is advertising in its territory.

Channels often involve​ long-term commitments and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental​ changes?

adaptability criteria

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?

administered VMS

Channel decisions: ______ _______ other marketing decision

affect every

What is the first step in marketing channel​ design?

analyzing customer needs

Consumers want ________ assortments of products in _______ quantities.

broad, small

How to intermediaries usually offer the firm more than it can achieve on its own?

contacts, experience, specialization, and scale of operation

a _________ VMS consists of independent firms at different levels of production and distribution that join together through contracts.

contractual

A(n) __________ consists of independent firms at different levels of production and distribution joining together through contracts.

contractual vertical marketing system

a __________ VMS combines successive stages of production and distribution under single ownership.

corporate

starts with the marketplace and works backward to the factory or even to sources of supply

customer centered logistics

The goal of marketing logistics is to...

deliver a targeted level of customer service at the least cost

You have developed a new product and have created a website where customers can go to order the product. Which type of channel are you most likely​ utilizing?

direct channel

the company sells directly to consumers

direct marketing channel

No intermediary levels

direct marketing levels

__________ 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.

disintermediation

Companies need to pay attention to their ______ _______...

distribution channels

__________ is giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

exclusive distribution

In ___________ organizations, a channel member, called a franchisor, links several stages in the production-distribution process.

franchise

The ____________ organization is the most common type of contractual relationship

franchise

Intermediaries create _____ _______ in making goods available to target markets.

greater efficiency

A(n) __________ is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

horizontal marketing system

Two or more companies at one level join together to follow a new marketing opportunity.

horizontal marketing system

____________ conflict occurs among firms at the same level of the channel. (Ford Dealership vs Ford Dealership)

horziontal

One or more intermediary levels

indirect marketing levels

Producers of convenience products typically use​ ______ distribution.

intensive

Should be done in a cost effective and profitable manner

inventory management

Carry small inventory, new stock arrives when needed

just in time logistics system

The greater number of levels means ______ ________ and greater channel ___________!

less control, complexity

Your favorite ice cream travels from the​ producer, who manufacturers the​ product, through several other organizations before arriving at the local grocery​ store, where you purchase the product. What is this set of organizations​ called?

marketing channel

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.

marketing logistics

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

marketing logistics

The length of a channel is indicated by​ ___________.

number of Intermediary Levels

Companies now use​ ________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate relationships with channel partners.

partner relationship management

Companies today see channel members as​ first-line customers and practice strong​ ________.

partner relationship management

Which of the channel structures would be best suited for a ballpoint ink​ pen?

producer, wholesaler, retailer, consumer

Which of the following functions do intermediaries not​ perform?

production

gives the physical location of a product. (smart tag technology)

radio frequency identification

​_______ involves​ reusing, recycling,​ refurbishing, or disposing of​ broken, unwanted, or excess products returned by consumers or resellers.

reverse logistics

_________ __________ store goods for moderate to long periods.

storage warehouses

Which channel partners in a​ company's supply chain are upstream from a manufacturer or​ producer?

suppliers

Marketing logistics involves the entirety of _________ ________ __________.

supply chain management

Why do producers give some of the selling job to channel partners?

they create greater efficiency in making goods available to target markets.

an independent logistics provider that performs any or all of the functions required to get a client's product to market.

third party logistics provider

What are these an example of: manufacturer-sponsored retailer franchise system, manufacturer-sponsored wholesaler franchise system, and service-firm-sponsored retailer franchise system.

three types of franchises

Why do producers use​ intermediaries?

to increase efficiency

Intermediaries are also called middlemen and include wholesalers and retailers. True or False?

true

Which of the following describes a​ just-in-time logistics​ system?

Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.

A(n) __________ coordinates successive stages of production and distribution through the size and power of one of the parties.

administered vertical marketing system

an ____________ VMS coordinates successive stages of pro duction and distribution through the size and power of one of the parties.

administred

Expansion of sales and marketing coverage and Tailor-made products and services for the specific needs of customer segments

advantages of multichannel distribution system

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

channel level

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

channel level

consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

conventional distribution channel

​A(n) _____ is made up of one or more independent​ producers, wholesalers,​ retailers, and consumers.

conventional distribution channel

Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________.

corporate VMS

serve as distribution channels that link the firm and its customers.

downstream partners

Interdependent organizations that help make a product or service available for use or consumption

marketing channel

What are these describing the role of: Transform the assortments of products made by producers into the assortments wanted by consumers

marketing intermediaries

Getting the right product to the right customer in the right place at the right time. Bottom line of? (physical distribution)

marketing logistics

One key function performed by channel members is​ ___________, or shaping offers to meet the​ buyer's needs, including activities such as​ manufacturing, grading,​ assembling, and packaging.

matching

​Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding​ full-line forcing?

may or may not be legal

A single firm sets up two or more marketing channels to reach customer segments.

multichannel distribution system

Producers make _______ assortments of products in ______ quantities.

narrow, large

When the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________________.

responsibilities of channel members

Bottom line...Getting the ____________ product to the ___________ customer in the ______________ place at the ____________ time.

right, right, right

involves managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

supply chain management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

supply chain managment

Company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system

value delivery network

Producers use intermediaries (also called middle men) to create ________________ _____________________in making goods available to target market.

greater efficiency

Warehousing, Inventory management, Transportation, and Logistics information management are functions of what?

logistics

Channel decisions: May involve ____ ____ _______ to other firms

long term commitment

​A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.

channel levels

Harder to control and Generates conflict

disadvantages of multichannel distribution system

Occurs when product or service producers cut out marketing channel intermediaries or when radically new types of channel intermediaries displace traditional ones

disintermediation

Online marketers taking business from traditional​ brick-and-mortar retailers is an example of​ _____.

disintermediation

large, highly automated warehouses that receive goods, take orders, fill them, and deliver goods to customers. (Designed to move goods)

distribution centers

A(n) __________ is a marketing channel containing one or more intermediary levels.

indirect marketing channel

How do channel members add value that separate goods and services from those who use them?

major time, place, and possession gaps

consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

marketing channel

__________ uses a single firm sets up two or more marketing channels to reach one or more customer segments.

multichannel distribution system

__________ uses a single firm to set up two or more marketing channels to reach one or more customer segments.

multichannel distribution system

selecting, managing, and motivating individual channel members and evaluating their performance over time

multichannel marketing

combines two or more modes of transportation.

multimodal transportation

When setting channel​ objectives, companies should state the objectives in terms of​ ______.

targeted levels of customer service

supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.

upstream partners

​A(n) _______ is made up of the​ company, suppliers,​ distributors, and,​ ultimately, customers who​ "partner" with each other to improve the performance of the entire system.

value delivery network

Under which type of system does the customer share​ real-time data on sales and current inventory levels with the​ supplier, and the supplier then takes full responsibility for managing inventories and​ deliveries?

vendor managed inventory

A(n) __________ is a channel structure in which producers, wholesalers, and retailers act as a unified system.

vertical marketing system