Chapter 12

Question 1

supply chain

Answer 1

‘make and sell’ view includes firm’s raw materials, productive inputs, and factory capacity.

Question 2

demand chain

Answer 2

‘sense and respond’ view suggests planning starts with needs of target customer.

Question 3

value delivery network

Answer 3

composed of company, suppliers, distriibutors, and ultimately customers partering with each other to improve system performance.

Question 4

marketing/distribution channel

Answer 4

set of interdependent org.’s helping make product/service available for use/consumption by consumer.

Question 5

upstream partners

Answer 5

firms supplying raw materials, components, parts, information, finances, and expertise needed to create product/service.

Question 6

downstream partners

Answer 6

include marketing/distribution channels looking toward customers, including retailers and wholesalers.

Question 7

how channel members add value

Answer 7

transform assortment of products into assortments wanted by consumers

bridge major time, place, possession gaps between manufacturers and customers, facilitating transactions.

distributors decrease number of contact, matching, negotiation, physical distribution, financing, risk-taking.

Question 8

direct marketing channel

Answer 8

no intermediary levels (producer to consumer)

Question 8

channel level

Answer 8

layer of intermediaries performing some work in bringing product and its ownership closer to final buyer

Question 9

indirect marketing channel

Answer 9

one or more intermediary (producer to wholesaler to retailer to consumer)

Question 10

channel members connected by several flows

Answer 10

physical flow of products, flow of ownership, payment flow, information flow, promotion flow.

Question 11

marketing channels

Answer 11

firms partnering for common good with each member playing specialized role

Question 12

channel conflict

Answer 12

disagreement among members over goals, roles, and reward.

horizontal - between members at same level of distribution channel.
vertical - between members of diff. levels of distribution channel.

Question 13

conventional distribution system

Answer 13

one or more independent producers, wholesalers, and retailers, each a separate business seeking to max. own profits, perhaps even at expense of profits for system as a whole.

Question 14

vertical marketing system (VMS)

Answer 14

provide channel leadership and consist of producers, wholesalers, retailers acting as unified system;

corporate, contractual, and administered MS.

Question 15

corporate VMS

Answer 15

combine successive stages of production and distribution under single ownership

Question 16

multichannel distribution systems

Answer 16

single firm sets up 2 or more marketing channels to reach one or more customer segments

Question 17

disintermediations

Answer 17

cutting out of marketing channel intermediaries by producers or displacement of traditiona resellers by new intermediaries .

Question 18

marketing channel design

Answer 18

design effective marketing channels by:
analyzing customer needs
setting channel objectives
identifying major channel alternatives (intensive, exclusive, selective distribution)
evaluating those alternative

for international distribution channels, marketers must be able to adapt channel strategies to structures within each country.

Question 19

channel management decision

Answer 19

select
manage
motivate
and evaluate channel members

Question 20

exclusive distribution

Answer 20

when producer gives only limited number of dealers exclusive right to distribute products on their territories.

Question 21

exclusive dealing

Answer 21

when seller requires exclusive distribution sellers not to handle competitor’s products

Question 22

exclusive territorial agreements

Answer 22

producer or seller limit territory

Question 23

tying agreements

Answer 23

dealer must take more of all of line

Question 24

marketing logistics (physical distribution)

Answer 24

involves planning, implementing, and controlloing physical flow of goods, services, and related info. from points of origin to points of consumption to meet consumer requirements at profit.

Question 25

supply chain management

Answer 25

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

Question 26

goal of marketing logistics

Answer 26

should be to provide targeted level of customer service at least cost.

Question 27

major logistics functions

Answer 27

warehousing
inventory management
transportation
logistics information management

Question 28

integrated logistics management

Answer 28

recognition that providing customer service and trimming distribution costs requires teamwork internally and externally.