MKTG 101 Exam 3 (Ch 10)
When it comes to price, payment terms, quality, and management style, what is the best choice?
- Price: moderately expensive - Payment Terms: 2% discount if paid in 10 days, due in 45 days - Quality: High - Management Style: Democratic (workers make their own decisions)
Name examples of warehousing, inventory management, transportation, and logistics info management
- Warehousing: distribution center - Inventory Management: stock outs - Transportation: trucking - Logistics Info Management: electronic data interchange (EDI)
What are the 5 key functions of a Marketing Channel?
1) promotion 2) contact 3) matching 4) information 5) negotiation
_______________________ is an example of horizontal channel conflict
A Subaru dealer complaining that another Subaru 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
________________________ is the first step in marketing channel design
Analyzing consumer needs
What is the differences between Conventional Distribution channels and Vertical Marketing Systems (VMS)?
CDC flows from producer -> wholesaler -> retailer -> and finally to the consumer VMS flows from the producer, wholesaler, and retailer (all 3 at once) -> consumer *CDC is also infamously known for lack of leadership and power and VMS is known for good channel leadership
What describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final buyer?
Channel levels
Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution strategy?
Exclusive
What's an example of a common situation in vertical conflict?
Franchise organizations
What's an example of Horizontal Conflict?
Holiday Inn franchisees might complain about other Holiday Inn operators overcharging guests or giving poor service, hurting the overall Holiday Inn image
What's the best channel to utilize?
Indirect Channel (prioritizes the development of the indirect offline channels for the sales of the company)
Which concept recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
Integrated supply chain management
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
It may or may not be legal
What is an example of a company that uses a Multichannel Distribution System?
John Deere sells its products through; John Deere retailers, Lowe's home improvement stores, and online
Many vital and key functions are performed by marketing channels. What is NOT one of those key functions?
Manufacturing and assembly
What 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
What's an example of Vertical Conflict?
McDonald's had too many franchisee discontentment which hurts McDonald's because franchisees operate more than 80% of the chain's restaurants
Which concept represents a new trend in logistics to save costs, increase efficiencies, and gain faster and more effective access to global markets?
Outsourcing logistics functions
What's an example of a Direct Marketing Channel?
Pampered Chef sells their products through home and office sales parties and online websites and social media
What's the best consumer demand to manage first?
Retailers
_______________________ entails 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
What indicates the length of a channel?
The number of intermediary levels in the channel
What most closely describes the method by which companies engage and create benefits for their customers?
Value delivery network
The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this goal, which of the following are logistical functional areas?
Warehousing, inventory management, transportation, and logistics information management
What is a Multichannel Distribution System?
a single firm that sets up two or more marketing channels to reach one or more customer segments
How do channel members add value?
by bridging the major time, place, and possession gaps that separate goods and services from those who use them
What is Vertical Conflict?
conflict between different levels of the same channel (is even more common)
What is Horizontal Conflict?
conflict that occurs among firms at the same level of the channel
What is unique about Contractual VMS?
consists of independent firms at different levels that join together to obtain a bigger sales impact than each could achieve alone
What does a Conventional Distribution Channel consist of?
consists of one or more independent producers, wholesalers, and retailers (each is a separate business seeking to maximize its own profits)
What does a Vertical Marketing System consist of?
consists of producers, wholesalers, and retailers acting as a unified system
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________
corporate VMS
Companies today see channel members as ______________ and practice strong partner relationship management
first-line partners
What is unique about Corporate VMS?
integrates successive stages of production and distribution under single ownership
Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse logistics, which means it ____________________________
involves the entire supply chain management
What is unique about Administered VMS?
leadership is assumed through the size and power of one or a few dominant channel members
What are Marketing Channels?
members who buy large quantities from many producers and break them down into smaller quantities
_____________________ software systems enable companies to coordinate their whole-channel marketing efforts
partner relationship management
One of the primary advantages of marketing logistics is __________________
potentially high cost savings and improved customer satisfaction
What 2 factors should be prioritized first when it comes to supplier decisions?
quality and price
When setting marketing channel objectives, companies should state the objective 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
What is unique about Indirect Marketing Channels?
they contain one or more intermediaries
What is unique about Direct Marketing Channels?
they have no intermediary levels—the company sells directly to consumers
A(n) _____ consists of producers, wholesalers, and retailers acting as a unified system
vertical marketing system
