CH 12

A food distributor buys fruit from local farmers, sorts it by quality, and then packages it to sell to larger grocers. This company is performing the distribution function of

accumulating bulk

In a(n) ________ vertical marketing system, one channel member may be placed in a position of channel control

administred

A soft drink company has been working with the same trucking company for ten years. Recently, their relationship has become strained as their contract comes up for renewal. The soft drink company wants to renew the contract with similar terms, while the trucking company wants to renegotiate rates to take into account rising gas prices. This is an example of

channel conflict

General Mills purchased thousands of acres of prime farmland in South Dakota to ensure it has a consistent source of organic wheat for its organic snack line. The wheat is grown and harvested to the firm's specific standards, and delivered to the manufacturing site. This is an example of a(n) ________ vertical marketing system.

corporate

Websites where customers come to engage with other customers, the sponsoring firm, and others in the ecosystem to share ideas and collaborate on topics of mutual interest are called

customer communities.

In many modern organizations, logistics and other processes are managed using sophisticated and integrated

enterprise resource planning systems.

_______ distribution is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing.

exclusive

An expensive fashion line enters into an agreement with a high-end clothing store. This agreement prevents the clothing store from selling competing products. This is an example of

exclusive dealing.

A wine distributor sells high-end wines to liquor, wine, and spirits wholesalers who have built relationships among select restaurants and hotels. This distributor employs a(n) ________ strategy.

exclusive distribution

________ power can take the form of sharing important product knowledge.

expert

To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay, firms utilize sophisticated

just-in-time (JIT) inventory control systems.

________ power results from contracts such as franchise agreements or other formal agreements.

legitimate

A vertical ________ system consists of vertically aligned networks behaving and performing as a unified system.

marketing

A distribution company purchases potatoes from potato farms. It then controls the terms of the sale of the potatoes to grocery stores around the country, including the price and delivery dates. It also takes on the risks associated with handling the product. This company is acting as a(n)

merchant intermediary.

A cosmetics company sells its goods in physical stores, through their online website, and through a mobile app. This is an example of

omnichannel retailing

________ refers to companies handing over most or all of their supply chain activities to third-party organizations that are experts in those areas.

outsourcing

The goal of ________ is to share resources, especially knowledge-based resources, to effect optimally profitable relationships between two channel members.

partner relationship management (PRM) strategies

An example of a push strategy is

paying a shelf fee

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between

producers and consumers.

A manufacturer employing a(n) ________ strategy focuses much of its promotional investment on the end-user consumer.

pull

An athletic shoe manufacturer pays a shelf fee to a sporting goods store to ensure its products' position on the store's shelves. This is an example of a(n)

push strategy.

Introducing an intermediary into a channel may contribute to ________ that are necessary to complete an exchange.

reducing transactions

A cereal company has a reputation for high quality products and successful marketing. Sales representatives from this company are often trusted to help stores determine what products to carry, and their products are frequently given prime display placement on the shelf. This is an example of

referent power

A group of local orchards in Michigan sells their fruit and wine to restaurants and grocers throughout the region. They band together to gain cost and operating economies of scale in the market for selling their products. This is an example of a(n)

retailer cooperative.

A food wholesaler purchases different fruits from local farmers and then sells them to local restaurants and retailers. If the fruits spoil before the wholesaler sells them, it takes the loss. As an intermediary, the wholesaler is performing the function of

risk-taking.

________ is one of the most commonly provided channel intermediary activities.

storage

Willa oversees the flow of activities among several entities for a local mini-mart chain. Her main objective is to coordinate these value-adding activities in a way that maximizes value and profit. She is in charge of

supply chain management.

A channel of distribution consists of interdependent entities that

transfer possession of a product from producer to consumer.

A(n) ________ is thought of as an overarching system of formal and informal relationships within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space.

value network

________ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

Channel power

________ strategies can be intensive, selective, or exclusive.

Distribution

________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

Inbound logistics

________ is the point of contact in the supply chain with the consumer of the product.

Retailing

A(n) ________ represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users.

Supply chain