question

Logistics refers to a system of proprietary computer and telecommunication technologies to exchge electronic

answer

activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost distribution management.

question

Logistics is most closely related to which element of the marketing mix?

answer

place

question

Logistics management refers to

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the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements

question

The word flow as it relates to the definition of logistics management refers to

answer

decisions needed to move a product from the source of raw materials to consumption.

question

An important feature of customer-driven supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.

answer

sophisticated information technology

question

In the automobile industry, the supply chain manager is responsible for translating __________ into actual orders and arranging for delivery dates.

answer

customer requirements

question

There are three steps used in choosing a supply chain: (1) _________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.

answer

understand the customer

question

Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors a(n) __________ designed to deliver products to consumers at the lowest possible cost.

answer

efficient supply chain

question

The objective of logistics management in a supply chain is to minimize total logistics costs while

answer

deliver the appropriate level of customer service.

question

Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, and order processing costs are referred to as ________.

answer

total logistics costs

question

The customer service concept implies firms should

answer

provide an appropriate level of customer service while minimizing total logistics costs

question

Customer service refers to

answer

the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

question

In a supply chain setting, replenishment time refers to lead time for an item, which means the lag from ordering an item until it is

answer

received and ready for use or sale.

question

A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.

answer

direct channel

question

In a direct channel, all channel functions are performed by _________.

answer

producers

question

Indirect channels for consumer goods

answer

include intermediaries that are between the producer and consumer and perform numerous channel functions.

question

A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when the retailer is large and can buy in large quantities from a producer or when

answer

the cost of inventory makes it too expensive to use a wholesaler.

question

An intermediary that performs a variety of marketing channel functions involving selling, stocking, and delivering a full product assortment and financing, is referred to as a(n) _________.

answer

industrial distributor

question

Machinetools.com sells grinders, boring mills, and engine lathes. The web site has listed goods from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale at the web site. Machinetools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this

answer

electronic marketing channel

question

Which of the following services or products must be provided by traditional marketing channels?

answer

health care

question

CPW (Cereals Produced Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

answer

strategic channel alliance

question

An example of a(n) __________ occurred when general mills used the distribution system of nestlé, to market its Honey Nut Cheerios in France, the United kingdom, Spain, and Portugal.

answer

strategic channel alliance

question

Mail order selling, catalog sales, and telemarketing, are all examples of.

answer

direct marketing channels.

question

When you order a sweater from an L L. Bean mail-order catalog, what type of marketing channel are you and the company using?

answer

direct marketing channel

question

The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online, is referred to as _________.

answer

multichannel marketing

question

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment or in carwashes where customers are waiting and can have something amusing to read. This would be an example of which type of distribution?

answer

Dual distribution

question

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as _________.

answer

vertical marketing systems

question

The term vertical marketing systems refers to

answer

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

question

A new company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that would give it the most control and the least amount of conflict. Which marketing channel arrangement should this company choose?

answer

a corporate vertical marketing system

question

Which of the following statements regarding corporate vertical marketing systems is most accurate?

answer

successive stages of production and distribution are under a single ownership.

question

Forward integration refers to

answer

when a producer owns an intermediary at the next level down in the marketing channel.

question

When a retailer owns a manufacturing operation, it is referred to as

answer

backward integration.

question

There are three variations of contractual systems: retailer-sponsored cooperatives, franchise systems, and _________.

answer

wholesaler-sponsored voluntary chains

question

Retailer-sponsored cooperatives refers to

answer

small independent retailers forming an organization that operates a wholesale facility cooperatively.

question

There are three variations of contractual systems: wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and ________.

answer

franchising

question

A contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules, is referred to as _________.

answer

franchising

question

Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob, however, has limited operating capital and yet, still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob?

answer

he should establish a contractual vertical marketing system (franchise).

question

General motors uses _________, where they licenses dealers in north america to sell their automobiles subject to various sales and service conditions.

answer

manufacturer-sponsored retail franchise system

question

Golden Valley Microwave Foods uses __________ to get their products to consumers.

answer

dual distribution

question

There are three degrees of distribution - one of these being intensive distribution. What is the extreme opposite of this degree of density?

answer

exclusive distribution

question

John Deere manufactures and distributes industrial and farm equipment. These types of equipment are considered to be specialty products. Which type of market coverage does john Deere likely use?

answer

exclusive distribution

question

For which of the following products would the manufacturer be most likely to use exclusive distribution?

answer

chanel perfume, Steinway pianos, and Baccarat crystal

question

A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as _________.

answer

selective

question

The four major considerations for satisfying buyer requirements when designing distribution channels include: (1) convenience, (2) variety, (3) pre-or post-sale services, and (4) ________.

answer

information

question

The four major considerations for satisfying buyer requirements when designing distribution channels include: (1) information, (2) convenience, (3) variety, and (4) _________.

answer

pre-or post-sale services

question

Channels are typically designed to satisfy one or more of four consumer interests. When a membership book club allows its members to use the internet to notify the company whether they want to receive the next month's issue, the book club is appealing to which buyer requirement?

answer

convenience

question

The third consideration in choosing a channel is profitability, which is determined by the margins earned (revenue minus cost) for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?

answer

the extent to which channel members share costs determines the margins received by each member and by the channel as a whole.

question

Conflict that occurs between two different levels in a marketing channel is referred to as

answer

vertical conflict

question

While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a web site where potential customers can find the answers to the questions most asked during the appliance purchase process. While Maytag considered using __________ (allowing customers to purchase at the site), it decided against it and simply provides the name and address of the nearest Maytag dealers

answer

disintermediation

question

Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears, walmart, and Sam's Clubs. Many switched to competing tire makers. This is an example of _________.

answer

horizontal confflict

question

Channel captain refers to

answer

a channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members.

question

A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Influence can take four forms: expertise; identification with a particular channel member; the legitimate right of one channel member to direct the behavior of other members; and

answer

economic influence.

question

The limited employs a quick response system to order fast-moving fashion items. The limited's point-of-sale scanner records each sale. When stock falls below a minimum level, the system automatically sends an electronic order to the manufacturer, which processes the order immediately. This system has effectively reduced

answer

replenishment time.

question

Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense Is referred to as

answer

quick response systems.

question

Efficient consumer response systems refer to

answer

inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense.

question

Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improvers customer service levels, and reduces logistic expenses is referred to as ______.

answer

efficient consumer response

question

Saks Fifth Avenue has a point-of-sale scanner system to record each sale. When stock of fashion merchandise, such as a Donna Karan jacket, falls below a minimum level, the system automatically generates a replenishment order. When the Donna Karan vendor receives it, the electronic order is processed within 48 hours. This is an example of a(n)

answer

efficient consumer response delivery system.

question

Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery, and

answer

complete delivery.

question

Convenience refers to

answer

the concept that there should be a minimum of effort on the part of the buyer in doing business with the seller.

question

An inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items is referred to as _________.

answer

vendor-managed inventory

question

Vendor-managed inventory refers to

answer

an inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.

question

Those activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost are referred to as

answer

logistics

question

Logistics refers to

answer

activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost distribution management.

question

Logistics is most closely related to which element of the marketing mix?

answer

place

question

Logistics management refers to

answer

inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements.

question

Which of the following statements best describes how a supply chain differs from a marketing channel?

answer

a supply chain includes suppliers; marketing channels do not.

question

Employing the internet to make products and services available for consumption or use by consumers or business buyers is referred to as _________.

answer

electronic marketing channels

question

The three major types of corporate vertical marketing systems are corporate, contractual, and _________.

answer

Administered

question

Tylenol and Advil are only two manufacturers of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, and general pain and fever. Both manufacturers of these products seek distribution of their products through pharmacies such as Walgreens. These companies seek out channels and intermediaries that will satisfy a buyer's desire for

answer

Variety

question

Which of the following would be a source of vertical conflict?

answer

if a Mcdonald's franchise wanted to purchase its produce through its own vendor.

question

. While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a web site where potential customers can find the answers to the questions most asked during the appliance purchase process. While Maytag considered using __________ (allowing customers to purchase at the site), it decided against it and simply provides the name and address of the nearest Maytag dealers.

answer

Disintermediation

question

Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers is referred to as _________.

answer

horizontal conflict

question

Another name for order cycle time is

answer

Replenishment time

question

Another name for efficient consumer response is _________.

answer

Quick response

question

At the end of a recent year, Solectron, a big Milpitas, California, electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron

answer

used a system in which its suppliers determined the product amount and assortment that should be in stock.

question

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass-market retailers such as wal-mart. The electronics company has begun production of a small line of high quality, professional studio-model components. How should the small electronics company best distribute its new products?

answer

distribute through agents who sell to specialty electronics stores who will feature the new line

question

A new company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that would give it the most control and the least amount of conflict. Which marketing channel arrangement should this company choose?

answer

a corporate horizontal marketing system

question

Candy bars should most likely be sold using which type of target market coverage?

answer

Intensive distribution

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