question

value delivery network

answer

a network composed of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value

question

marketing channel (distribution channel)

answer

a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

question

channel level

answer

a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

question

direct marketing channel

answer

a marketing channel that has no intermediary levels

question

indirect marketing channel

answer

a marketing channel containing one or more intermediary levels

question

channel conflict

answer

disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards horizontal conflict = among firms at the same level of the channel vertical conflict = between different levels of the same channel

question

conventional distribution channel

answer

a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

question

vertical marketing system (VMS)

answer

a channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate

question

corporate VMS

answer

a vertical marketing system that combines successive stages of production and distribution under single ownership--channel leadership is established through common ownership

question

contractual VMS

answer

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

question

franchise organization

answer

a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

question

administered VMS

answer

a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

question

horizontal marketing system

answer

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

question

multichannel distribution system

answer

a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

question

disintermediation

answer

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

question

marketing channel design

answer

designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives

question

intensive distribution

answer

stocking the product in as many outlets as possible

question

exclusive distribution

answer

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

question

selective distribution

answer

the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products

question

marketing channel management

answer

selecting, managing, and motivating individual channel members and evaluating their performance over time

question

marketing logistics (physical distribution)

answer

planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

question

supply chain management

answer

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

question

integrated logistics management

answer

the logistics concept that emphasizes teamwork--both inside the company and among all the marketing channel organizations--to maximize the performance of the entire distribution system

question

third-party logistics (3PL)

answer

an independent logistics provider that performs any or all of the functions required to get a client's product to market

question

Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers?

answer

downstream partners

question

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

answer

direct

question

Channel members depend on one another, but they often act alone in their own short-run best interests and often disagree on who should do what and for what rewards. Which of the following best illustrates horizontal conflict?

answer

One Wendy's franchise in the Chicago region does not contribute to the general Wendy's advertising pool, but due to its excellent location, it benefits from the increased traffic generated by the ads.

question

In a channel, one or more independent producers, wholesalers, and retailers is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. This type of channel is described as what kind of distribution system?

answer

conventional

question

In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members.

answer

administered VMS

question

For which product would a company use an exclusive distribution strategy?

answer

luxury cars

question

________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products.

answer

selective

question

Because logistics is complicated and viewed as a hassle by many firms, increasingly a growing number of firms now outsource some or all of their logistics to firms such as Ryder, Penske Logistics, BAX Global, DHL Logistics, FedEx Logistics, and UPS Business Solutions. What are firms like Ryder and FedEx called?

answer

3PL providers

question

Using ________, retailers can share real-time data on sales and current inventory levels with suppliers.

answer

vendor managed inventory systems

question

The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.

answer

disintermediation

question

_______ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities.

answer

intermediaries

question

A________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

answer

channel level

question

A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole.

answer

conventional distribution center

question

The ________ organization is the most common type of contractual relationship.

answer

franchise

question

________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible.

answer

intensive

question

Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________.

answer

reverse logistics

question

________ or smart tag technology helps companies locate a product's exact position within its supply chain.

answer

RFID

question

Piggyback and fishyback are forms of what logistics element?

answer

multimodal transportation

question

Which of the following is a disadvantage of adding new channels in a multichannel distribution system?

answer

decreasing control over the system

question

From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers.

answer

marketing intermediaries

question

In which of the following situations is the channel a direct marketing channel?

answer

consumer stops at dunkin donuts on the way to work to buy a dozen of donuts for the office

question

A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone.

answer

contractual

question

For which of the following products would the intensive distribution strategy most likely be used?

answer

soft drinks

question

________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

answer

supply chain

question

In intermodal transportation, which of the following describes the use of both rail and trucks for transportation?

answer

piggyback

question

________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

answer

disintermediation

question

The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.

answer

disintermediation

question

Companies can design their distribution channels as long or as short as they choose to make products and services available to customers in different ways. There are two players that are always part of the channel that delivers value. What are those two player roles?

answer

producer and the final consumer

question

Which of the following is a major type of vertical marketing system?

answer

conventional

question

A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.

answer

multichannel distribution

question

Which of the following should be a manufacturer's first step when designing an effective marketing channel?

answer

analyze consumer needs

question

Why do firms have difficulty accessing potential market areas in developing countries, such as China and India?

answer

inadequate distribution systems

question

Conflict that occurs between different levels of the same marketing channel is known as ________ conflict.

answer

vertical

question

Which of the following is an advantage of adding new channels in a multichannel distribution system?

answer

expanding sales and market coverage

question

A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel.

answer

indirect

question

A ________ VMS integrates successive stages of production and distribution under single ownership.

answer

corporate

question

Why do firms have difficulty accessing potential market areas in developing countries, such as China and India?

answer

inadequate distribution systems

BUSML 3250 Chapter 12 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards