MKT 3013 Chapter 10

What is the most common type of a contractual VMS?

A franchise

What are the four steps to designing marketing channels in their correct order?

Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives.

What is the first step in marketing channel design?

Analyzing consumer needs.

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 level

Which of the following statements is true regarding channel organization?

Channel members are dependent on each other for the overall success of the channel.

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

Conventional distribution channel

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

Disternmediation

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 the set of organizations called?

Marketing channel

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 of the following statements regarding marketing logistics is true?

Marketing logistics involve inbound logistics, outbound logistics, and reverse logistics.

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 following channel structures would be best suited for ballpoint ink pen?

Producer-wholesaler-retailer-consumer

Which of the following statements is true regarding the selection of qualified channel members?

Producers vary in their ability to attract qualified marketing intermediaries.

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

Radio frequency identification

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

Reverse logistics

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

Suppliers

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

Targeted levels of customer service

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 _____________________.

The responsibilities of channel members

Why do producers use intermediaries?

To increase efficiency

What are four major functions of marketing logistics?

Warehousing, inventory management, transportation, and logistics information management

What are the four major functions of logistics?

Warehousing, inventory management, transportation, logistics information management

When designing marketing channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are ___________________ distribution.

intensive, selective, and exclusive

A(n) _________________ is made up of the company, supplies, distributors, and, ultimately, customers who "partner" which each other to improve the performance of the entire system.

value delivery network

A _______________ consists of producers, wholesalers, and retailers acting as a unified system.

vertical marketing system

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

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

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

Which of the following functions do intermediaries not perform?

Production

The length of a channel is indicated by __________________.

The number of intermediary levels

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.

Most companies today see their intermediaries as first-line customers and focus on ______________ to forge long-term relationships with channel members.

partner relationship management

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

When assigning functions to channel members, it is important for producers to _________________.

Assign functions to the channel members that can add the most value for the 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

Producers of convenience products typically use _________________ distribution

Intensive

Which of the following statements is true regarding marketing channels and channel intermediaries?

Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products.

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

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

Corporate VMS

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?

It may or may not be legal.