question

Which of the following is NOT a typical supply chain member? A) resellers B) customers C) intermediaries D) government agencies E) raw materials supplier

answer

government agencies

question

________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.

answer

Upstream from

question

Another term for the supply chain that suggests a sense and respond view of the market is ________.

answer

demand chain

question

When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________.

answer

value delivery network

question

Most producers today sell their goods to ________.

answer

intermediaries

question

A company's channel decisions directly affect every ________.

answer

marketing decision

question

Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners.

answer

long-term commitments

question

Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries?

answer

scale of operation

question

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

answer

consumers

question

Producers benefit from using intermediaries because they ________.

answer

offer greater efficiency in making goods available to target markets

question

Intermediaries play an important role in matching ________.

answer

supply and demand

question

Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them.

answer

time, place, and possession

question

Which of the following is NOT a key function that intermediaries play in completing transactions? A) promotion B) information C) matching D) financing E) negotiation

answer

E) negotiation

question

Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? A) physical distribution B) promotion C) financing D) risk taking E) storing goods

answer

D) risk taking

question

In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel.

answer

length

question

To a producer of goods, a greater number of channel levels means ________ and greater channel complexity.

answer

less control

question

All of the institutions in a channel are connected by various flows. These include physical flow, flow of ownership, payment flow, information flow, and ________ flow.

answer

promotion

question

A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals.

answer

complex behavioral system

question

An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.

answer

specialized role

question

________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel.

answer

Vertical; horizontal

question

Historically, conventional channels have lacked the leadership to ________.

answer

assign member roles and manage conflict

question

A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers.

answer

independent

question

A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profits is a(n) ________.

answer

conventional distribution channel

question

An advantage of a vertical marketing system (VMS) is that it acts as a ________ system.

answer

unified

question

A corporate VMS has the advantage of controlling the entire distribution chain under ________.

answer

single ownership

question

Which of the following are the three major types of vertical marketing systems?

answer

contractual, corporate, and administered

question

A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.

answer

contractual agreements

question

The most common type of contractual agreement in business is the ________.

answer

franchise organization

question

Leadership in which type of marketing system 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

In a ________, two or more companies at one level join together to develop a new marketing opportunity.

answer

horizontal marketing system

question

Hybrid marketing systems are also called ________.

answer

multichannel distribution systems

question

As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? A) expanded sales B) expanded market coverage C) selling at a higher gross margin D) opportunities to tailor products and services to the needs of diverse segments E) A and C

answer

C.) selling at a higher gross margin

question

The use of multichannel systems in the United States is ________.

answer

increasing

question

The major disadvantage of a multichannel system is that it is harder to control and it can generate ________.

answer

channel conflict

question

Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones.

answer

disintermediation

question

In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing.

answer

technology; direct and online

question

Designing a channel system calls for analyzing consumer needs, setting channel objectives, ________ and evaluation.

answer

identifying major channel alternatives

question

Which of the following should be the first step in designing a marketing channel?

answer

identifying what consumers want from the channel

question

To increase a channel's service level, it must provide a greater assortment of products, more add-on services, and ________.

answer

faster delivery

question

Companies should state their channel objectives in terms of targeted levels of ________.

answer

customer service

question

When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries.

answer

responsibilities

question

Which type of product might require a more direct marketing channel to avoid delays and too much handling?

answer

perishable products

question

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution.

answer

selective

question

Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution.

answer

exclusive

question

Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products?

answer

selective

question

When establishing the responsibilities of channel members, the producer establishes a list price, sets discounts for intermediaries, and defines each channel member's ________.

answer

territory

question

Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control C) adaptive criteria D) channel leadership E) none of the above

answer

D) channel leadership

question

When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options.

answer

economic

question

It is common for international marketers to ________ their channel strategies for each country.

answer

adapt

question

China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________.

answer

inadequate distribution systems

question

Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time.

answer

motivating

question

A company should think of its intermediaries as both its ________ and ________.

answer

customers; partners

question

Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for?

answer

partner relationship management

question

Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________.

answer

exclusive dealing

question

Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly and as long as both parties enter into the agreement ________.

answer

substantially lessen competition; voluntarily

question

Exclusive territorial agreements are normal in ________.

answer

franchises

question

If the producer of a strong brand agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line, the result is ________.

answer

a tying agreement

question

Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process? A) planning the physical flow of goods and services B) implementing the plan for the flow of goods and services C) controlling the physical flow of goods, services, and information D) gathering customer's ideas for new products E) A and C

answer

D) gathering customer's ideas for new products

question

Marketing logistics involves which of the following distribution flows?

answer

outbound, inbound, and reverse

question

Which of the following is NOT an area of responsibility for a logistics manager? A) information systems B) warehousing C) marketing D) inventory E) purchasing

answer

C) marketing

question

Which of the following innovations has created opportunities for significant gains in distribution efficiency?

answer

Web-based logistics systems

question

The goal of marketing logistics should be to provide a ________ level of customer service at the least cost.

answer

targeted

question

The difference between distribution centers and storage warehouses is that the former are designed to ________.

answer

move goods rather than just store them

question

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.

answer

just-in-time logistics

question

Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a product is within the supply chain.

answer

RFID

question

Which of the following transportation modes is used for digital products?

answer

the internet

question

In choosing a transportation mode for a product, shippers must balance the considerations of speed, dependability, cost, and ________.

answer

availability

question

In the proper order, identify the correct terms for these intermodal transportation combinations: rail and truck, water and truck, water and rail.

answer

piggyback; fishyback; trainship

question

Companies manage their supply chains through ________.

answer

information

question

Using ________, retailers can share real-time data on sales and current inventory levels with suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time and money.

answer

continuous inventory replenishment systems

question

Lancaster Box Company wants to provide better customer service while trimming distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Lancaster Box is thinking of ________.

answer

integrated logistics management

question

What is the goal of integrated supply chain management?

answer

to reduce costs. to increase services with minimal cost through teamwork. to harmonize all of the company's logistics decisions. to reduce conflict and increase cooperation among channel members.

question

Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers to improve customer service and reduce channel costs through ________.

answer

cross-functional, cross-company teams

question

The success of each channel member depends on the performance of ________.

answer

the entire supply chain

question

Today, a growing number of firms now outsource some or all of their logistics to ________.

answer

third-party logistics providers

question

In designing its marketing channel, Chairs for Every Occasion has moved from a make-and- sell view of its business, which focused on productive inputs and factory capacity as a starting point for marketing planning, to a sense-and respond view, which begins instead with the needs of target customers. With this new view, Chairs for Every Occasion is developing its ________.

answer

demand chain

question

Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member?

answer

identifying raw materials and other productive inputs

question

Steve's Physco Skates sells its products to Wal-Mart, who then sells them to the consumer. This is an example of a(n) ________.

answer

indirect marketing channel

question

Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________.

answer

channel conflict

question

When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a ________ conflict.

answer

horizontal

question

Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created a ________ conflict.

answer

vertical

question

Which of the following is an example of horizontal channel conflict?

answer

managers of two separate Holiday Inns disagreeing over what constitutes poor service; the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close

question

Which of the following is an example of a manufacturer-sponsored retailer franchise system?

answer

Ford and its network of independent franchised dealers

question

When McDonald's offers its products inside of a Wal-Mart store, it is following a ________.

answer

contractual VMS

question

Which of the following is an example of a multichannel distribution system?

answer

J. C. Penney's catalog and retail store sales

question

Blockbuster offers DVD rentals through its Total Access online rental service and through its bricks-and-mortar stores. This is an example of a(n)________.

answer

ultichannel distribution system

question

When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system, Netflix was following the trend of ________.

answer

disintermediation

question

Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution.

answer

intensive

question

Which product(s) will most likely be intensively distributed?

answer

Coca Cola

question

Which product will most likely be exclusively distributed?

answer

BMW Cars

question

Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution.

answer

exclusive

question

Why is it important for manufacturers to be sensitive to the needs of their dealers?

answer

Dealer support is essential to creating value for the customer.

question

Caterpillar, the famous heavy equipment manufacturer, has a reputation for working in harmony with its worldwide distribution network of independent dealers. Caterpillar has shared its successes with its dealers and protected its dealers during difficult economic times. This is an example of ________.

answer

partner relationship management

question

Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________.

answer

exclusive distribution

question

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should consider using ________ as its main carrier.

answer

air

question

Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport.

answer

water

question

When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising programs, it is implementing a ________.

answer

shared projects

question

UPS Supply Chain Solutions, which handles all of its clients' "grunt work" associated with logistics, is an example of ________.

answer

a third-party logistics provider

question

In using air transportation and then expedited truck carriers to deliver specialty items to customers outside of a designated delivery range, Miller Meats is using ________.

answer

intermodal transportation

Test bank Principles of Marketing 13e by Kotler Chapter 12 – Flashcards

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