Marketing Exam 4 Study Questions

Information in a supply chain flows to and from which of the following?

- Manufacturers - Distribution Centers - Wholesalers

Which of the following intermediaries are included in indirect marketing channels?

- Retailer - Merchandise wholesaler

Manufacturers and retailers develop their strategy by implementing the ______.

4 Ps

What is a wholesaler?

A company that buys merchandise from manufacturers and resells it to retailers

Which statement about marketing channels is true?

A marketing channel may be a combination of a direct channel and an indirect channel.

When a manufacturer ships HDTVs to the Best Buy distribution center, it sends a(n) _______ to the distribution center, which is an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment.

Advanced shipping notice

Which of the following is an example of power being exerted within a marketing channel?

Although all companies in the channel are independent, one large retailer controls what a small supplier can do.

The process of going through the goods upon receipt to ensure they arrived undamaged and that the merchandise ordered was the merchandise received is called _______.

Checking

When it comes to the marketing mix element of "place," what is a key ingredient for brick-and-mortar retailers?

Convenient locations

Which vertical marketing system gives complete power to the parent company?

Corporate

What is the first flow of information (Flow 1) in a supply chain?

Customer to store

Which of the following are the common types of marketing channels?

Direct/Indirect

Which of the following occurs in a conventional marketing channel?

Each channel member pursues its own objectives independently, with little care about other channel members.

_______ is the computer-to-computer exchange of business documents from a retailer to a vendor and back.

Electronic Data interchange

What is the best way to avoid vertical channel conflict?

Ensure that communication between channel partners is honest and open.

To whom are a lump sum and royalties paid when a franchise opens?

Franchisor

Which of the following is a likely result of companies being able to perform several of the channel functions themselves?

Greater efficiency

_______ channel conflict can occur when there is disagreement or discord among members at the same level of marketing channel, such as two competing retailers or two competing manufacturers.

Horizontal

Which of the following is NOT one of the four factors to consider as manufacturers develop their strategy for working with retailers?

Identifying types of wholesalers

All of the following are necessary components of strategic and partnering relationships EXCEPT _______.

Independent goals

Most consumer packaged goods companies, such as Pepsi, Procter & Gamble, Kraft, and other nationally branded products found in grocery and discount stores are examples of which level of distribution intensity?

Intensive

What is the first step in the merchandise flow channel?

Manufacturer

What is the most direct supply chain in a simple economy?

Manufacturer to consumer

Which of the following describes the use of a wireless network and portable devices that receive demand notifications to provide a speedy response?

Mobile task management

TJ Maxx, Marshalls, and Big Lots offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer's suggested retail price. They are examples of which type of retailer?

Off-price retailers

In addition to its regular retail outlets, Starbucks has stores in shopping malls, airports and supermarkets. What element of the marketing mix does this represent?

Place

Manufacturers may offer discounts to retailers that run special promotions featuring the manufacturer's products. What type of power does this demonstrate?

Reward

Which type of economy is best suited to a direct, manufacturer-to-consumer supply chain?

Simple

. _______ are developed by a manufacturer in conjunction with a retailer and sold exclusively at that retailer's stores.

Store brands

When a customer purchases merchandise, what event causes information to begin moving through marketing channels?

The sales associate scans the UPC for the product the customer is purchasing.

Which statement in true about business relationships in supply chains?

They are based on meeting each other's needs.

The _____ tag is the black-and- white bar code found on most merchandise. It contains a 13-digit code that indicates the manufacturer of the item, a description of the item, information about special packaging, and special promotions.

UPC

_______ like Costco and Sam's Club offer an irregular assortment of products, low service levels, and low prices that often require membership for shoppers.

Warehouse clubs

What is the first decision to be made when considering merchandise flow?

Where the merchandise will go

In a(n) ________, there is no common ownership and no contractual relationships, but the dominant channel member controls or holds the balance of power in the channel relationship.

administered vertical marketing system

Perhaps the greatest benefit offered by stores is the opportunity for customers to use _______.

all five of their senses to examine products

General merchandise retailers include all of the following EXCEPT _______.

convenience stores

As transactions are eliminated, the supply chain becomes more efficient, which impacts customers by making it more ______ and less _______ to purchase merchandise.

convenient; expensive

In a ______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members.

conventional marketing channel

A marketing channel that does not have any intermediaries between the buyer and seller is known as a(n) ________ marketing channel.

direct

In which type of marketing channel are products sold by a manufacturer to a consumer without going through a retailer?

direct marketing channel

A ______________ center is a facility where goods are received, stored, and shipped to company stores.

distribution

A ________ is a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists.

distribution center

Firms decide the appropriate level of _______, which is the number of channel members to use at each level of the marketing channel.

distribution intensity

Some cosmetics firms limit distribution to a single select, high-end retailer in each region. This is an example of _______ distribution.

exclusive

When supply is limited or a firm is just starting out, providing a(n) ________ territory to a retail chain helps ensure enough inventory will be available to provide the buying public an adequate selection.

exclusive

Someone who purchases the right to operate a retail outlet using a previously developed and supported name and format is called a _________

franchisee

The most common type of contractual vertical marketing system is

franchising.

In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers

indirect

The idea behind a(n) _______ distribution strategy is that the more exposure a product gets, the more sales it will generate.

intensive

Estée Lauder would not choose to sell to CVS or Dollar General because ________.

its customers would not expect to shop at those stores for high-end cosmetics like Estée Lauder

Generally, the _______ and ______ sophisticated the channel member, the less likely that it will use supply chain intermediaries.

larger; more

The more formal the vertical marketing system, the _______.

less likely conflict will ensue

An effort to communicate with consumers through wireless handheld devices such as cellular phones is referred to as _______.

m-commerce

The integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries is called Blank______ management.

marketing channel

Using demand notifications to notify sales associates who can physically pull an item from store shelves and verify its availability is part of___________ task management.

mobile

When choosing retail partners, manufacturers look at all of the following EXCEPT _______.

number of advertising outlets

Retailers that sell products in stores, catalogs, and on the Internet are using a(n) ________ strategy.

omnichannel

In the management of market channels, a strategic relationship is also known as a(n) Blank______.

partnering relationship

A(n) _______ is used by forklift drivers to let them know how much of each item to get from specific storage areas in a distribution center.

pick ticket

A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of Blank______.

power within a marketing channel

Developing a retail strategy using the marketing mix involves using all of the following EXCEPT _______.

process

Historically, the lack of an efficient supply chain has resulted in

reduced delivery time to customers

The _______ distribution strategy relies on placing products with a few selected retail customers in a geographic territory.

selective

Home-care services such as lawn and garden maintenance, house cleaning, health care, personal training, and meal preparation are all types of _______.

service retailers

Marketing channels include which of the following?

stores and warehouses

In a Blank______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved.

strategic

Stores that combine a supermarket with a full-line discount store are called _______.

supercenters

Another term for marketing channel management is Blank______ management.

supply chain

Manufacturers strongly consider where their __________ expect to find the products, because those are exactly the stores in which they want to place their products.

target customers

To minimize conflict, each member of the supply chain should Blank______ what drives the other members.

understand

Each participant in a successful supply chain adds ______.

value

Manufacturers make products and sell them to Blank______, who resell the merchandise to retailers.

wholesalers

A direct marketing channel sells a product from a manufacturer to a consumer Blank______.

without a retailer