Marketing Management Chapter 15 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Distribution Center
answer
is a facility where goods are received, stored, and redistributed to company stores or customers.
question
Another term for marketing channel management is ____________ management.
answer
Supply Chain
question
The information flowing from the store to the distribution center typically includes:
answer
-Delivery information -Inventory Status
question
Information stored in data warehouse may be accessed by _____________ from various levels of the corporation.
answer
Analysts
question
Electronic Data Interchange (EDI)
answer
Computers send business documents from a retailer to a vendor and back.
question
The three main benefits of EDI to supply chain members include:
answer
-Better quality of communication -Data reports that are easily analyzed -Faster flow of information
question
Retailers now typically require vendors to provide them with notification of deliveries before they take place, using:
answer
An advanced shipping notice
question
EDI allows:
answer
-Buyers to issue requests for proposals -Suppliers to describe and show pictures of their products.
question
Because EDI helps information to flow more quickly, a firm using EDI will typically see a reduction in _____________, which is the time between a decision to place an order and the arrival of the merchandise.
answer
Cycle Time
question
Using the __________ system, the manufacturer knows when the retailer's inventory has dropped to a certain reorder point, which means the manufacturer should deliver more merchandise.
answer
Vendor Managed Inventory
question
VMI, as part of its design, includes:
answer
-Reducing stockouts with minimal inventory -Reducing vendor and retailer costs -Replenishing inventories with enough merchandise to meet immediate demand
question
Limitations of VMI include:
answer
-Manufacturers might not be familiar with the stores actions that could affect future sales -Manufacturers might not be familiar with competitor promotions at the store
question
Information typically included in EDI between retailer and manufacturer include:
answer
-Returned merchandise -Sales data -Purchase orders
question
What allows suppliers to describe and show pictures of their products and buyers to issue requests for their proposals?
answer
EDI
question
Relationships in supply chains occur because:
answer
the parties want something different from each other.
question
Who performs a specialized function within a marketing channel?
answer
Every member
question
Conflicting goals of channel members often lead to channel _____________.
answer
Conflict
question
Vertical Channel Conflict
answer
When supply chain members that buy and sell to one another are not in agreement about their goals, roles, or rewards.
question
Horizontal Channel Conflict
answer
Can also occur when there is disagreement or discord among members at the same level in a marketing channel, such as two competing retailers or two competing manufacturers
question
Example of Horizontal Channel Conflict
answer
Amazon is often accused of putting bricks and mortar stores out of business by selling at lower prices.
question
When marketing channels are not independent, but more closely aligned, conflicts are:
answer
Less likely
question
Conventional Marketing Channel (also known as Independent Marketing Channel)
answer
Several independent members - a manufacturer, a wholesaler, and a retailer - attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members.
question
A conventional marketing channel is one in which:
answer
Each channel member pursues its own objectives independently
question
Which is a formal, controlled type of vertical marketing system?
answer
Administered
question
A vertical system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the relationship, is known as a ______________ vertical system.
answer
Administered
question
__________ in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution.
answer
Power
question
Manufacturers may offer discounts to retailers who run special promotions featuring the manufacturer's products. This is an example of __________ power.
answer
Reward
question
If Sony threatens to cancel its contract with a transportation company if any deliveries arrive late, it is wielding ____________ power.
answer
Coercive
question
It has been easy for apple to find retailers to carry the popular iPad brand of products. Because the retailers are selling that brand in their stores, more customers have been shopping there. This illustrates _____________ power.
answer
Referent
question
To learn more about their customers, manufacturers often try to engage directly with customers on their websites. This allows them to become less dependent on retailers who actually sell the products for customer insights. These manufacturer's are seeking to limit the __________ power held by the retailers.
answer
Information
question
A contract between a manufacturer and a retailer may specify that the retailer must feature the manufacturers products in order to receive certain discounts or allowances. The contract gives the manufacturer _____________ power to require the retailer to take the agreed upon actions.
answer
Legitimate
question
Contractual Vertical Marketing Systems
answer
Independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination and to reduce conflict.
question
Franchising
answer
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor.
question
To whom are a lump sum and royalties paid when a franchise opens?
answer
The franchisor
question
When a franchise business opens, the franchisor who owns the original business:
answer
-Develops the products and services -Collects royalties -Does advertising
question
In a ___________ vertical marketing system, a firm owns and controls all of its supply chain.
answer
Corporate
question
In a ___________ 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.
answer
Strategic
question
Managing a supply chain also requires managing _______________.
answer
Relationships
question
Mutual trust helps partners in strategic relationships to:
answer
-Communicate effectively -Discuss goals and problems -Share ideas
question
Open communication is vital to a strategic relationship because members need to understand:
answer
-Problems that might arise -Each other's strategies
question
A ____________ is an intermediary who sells Hope Springs's bottled water to retailers such as the Coffee Collective.
answer
Wholesaler
question
In a direct marketing channel, the manufacturer sells its products to __________.
answer
Retailer?
question
If Walmart purchased water from Hope Springs for sale in its retail stores, containers of water might be temporarily stored in a facility for the receipt, storage, and redistribution of goods. Such a facility is called a(n) __________.
answer
Distribution Center
question
When Hope Springs purchases refillable bottles for its water, it submits its orders directly from its computer system to its supplier's system. This is an example of __________.
answer
Electronic Data Interchange (EDI)?
question
Each participant in a successful supply chain adds ______.
answer
Value
question
As transactions are eliminated, the supply chain becomes more efficient, which impacts customers by making it more ______ and less _______ to purchase merchandise.
answer
convenient; expensive
question
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.
answer
Distribution center
question
Historically, the lack of an efficient supply chain has resulted in all of the following EXCEPT ______. -orders being lost or misplaced -shipments being misdirected -ordered goods not being available -reduced delivery time to customers
answer
Reduced delivery time to customers
question
Janelle grows sweet corn on her farm and sells it to customers from a roadside stand. This is an example of a(n) _______.
answer
direct marketing channel
question
A marketing channel that does not have any intermediaries between the buyer and seller is known as a(n) ________ marketing channel.
answer
Direct
question
In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.
answer
Indirect
question
A local bike shop buys bicycles and accessories from various manufacturers and resells them to its customers. What type of marketing channel does this represent?
answer
Indirect
question
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.
answer
Administered Vertical Marketing System
question
_______ 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.
answer
Horizontal
question
The more formal the vertical marketing system, the _______.
answer
Less likely conflict will ensue
question
Franchising is the most common type of _______.
answer
Contractual vertical marketing system
question
All of the following are necessary components of strategic and partnering relationships EXCEPT _______. -mutual trust -interdependence -open communication -independent goals
answer
Independent goals
question
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.
answer
UPC
question
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.
answer
Advanced shipping notice
question
_______ is the computer-to-computer exchange of business documents from a retailer to a vendor and back.
answer
Electronic data interchange
question
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 _______.
answer
Checking
question
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.
answer
Pick ticket
