The University of Oklahoma

MKT 3013

Ch. 12

1)Which of the following is NOT a typical supply chain member?

2.                    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.

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

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

5. Most producers today sell their goods to        .

6. A company's channel decisions directly affect every       .
7. Distribution channel decisions often involve         with other firms, particularly those that involve contracts or relationships with channel partners.

8. 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?

9. 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              .

10. Producers benefit from using intermediaries because they   .

11. Intermediaries play an important role in matching       .

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

13. Which of the following is NOT a key function that intermediaries play in completing transactions?

14. Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction?

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

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

17. 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.

18. 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.

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

                   in the channel.

20.                    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.

21. Historically, conventional channels have lacked the leadership to    .

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

23. A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profits even at the expense of profits for the channel as a whole is a(n)          .

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

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

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

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

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

29. 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?

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

31. Hybrid marketing systems are also called          .

32. 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?

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

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

35. 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.

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

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

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

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

                  .

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

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

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

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

44. 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.

45. 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?

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

47. Channel members should be evaluated using all of the following criteria EXCEPT which one?

48. When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using

                   criteria to evaluate its channel options.

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

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

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

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

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

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

                  .

55. 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        .

56. Exclusive territorial agreements are normal in         .

57. 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    .

58. 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?

59. Marketing logistics involves which of the following distribution flows?

60. Which of the following is NOT an area of responsibility for a logistics manager?

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

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

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

64. 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.

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

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

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

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

69. Companies manage their supply chains through       .

70. 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.

71. 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  .

72. What is the goal of integrated supply chain management?

73. Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers

to improve customer service and reduce channel costs through  .

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

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

76. 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           .

77. 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?

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

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

80. 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.

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

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

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

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

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

86. 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)          .

87. 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         .

88. 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.

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

90. Which product will most likely be exclusively distributed?

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

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

93. 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 .

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

95. 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.

96. 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.

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

is implementing a               .

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

Refer to the scenario below to answer the following questions.

Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center. To guarantee freshness, Miller Meat Company relies on a vast distribution network. For delivery to local grocers in Indiana, Miller Meat uses its own fleet of refrigerated trucks; delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business. For deliveries in Illinois, Wisconsin, and points directly west of the Mississippi River, Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana. During the holiday season, however, several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes, then ship them directly to the recipients. For these specialty shipments within Indiana, Illinois, and Wisconsin, Miller uses its normal delivery mode. For all other specialty shipments, Miller ships from its distribution warehouse via air, then contracts with expedited carriers in various cities to deliver to the recipients.

99. Which of the following is one of Miller Meat Company's upstream partners?

100. 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 .

101. Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company's supply chain.

102. The term supply chain may be too limited because it takes a make-and-sell view of the business.

103. In creating customer value, it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners.

104. With the success of the Internet, few producers sell through intermediaries today.

105. Imaginative distribution systems can be used to gain a competitive advantage.

106. A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

107. Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation.

108. It is safe to say that distribution channels are fairly simple behavioral systems in which people and companies interact to accomplish individual company and channel goals.

109. Judy Smith is the manager of the local McDonald's franchise in Carterville. Recently the home office did not let her participate in co-op advertising like the other McDonald's in her district. Now she is irritated and demands fairness. This is an example of horizontal conflict.

110. In a conventional distribution channel, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict.

111. When Sherwin Williams Paint Company has single ownership of integrated, successive stages of production and distribution, it has created a corporate VMS.

112. When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow a new marketing opportunity, they are forming a horizontal marketing system.

113. Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week the owners opened up a walk-in discounted consumer produce outlet. Always is now using a multichannel distribution system.

114. Disintermediation as a trend is on the rise in U.S. business.

115. Disintermediation has occurred when an online marketer takes business away from traditional brick-and-mortar retailers.

116. The faster the delivery, the greater the assortment provided, and the more add-on services supplied, the more the channel's service level is restricted.