Chapter 12

Question 1

Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users

Answer 1

Marketing Channel

Question 2

Any intermediary between manufacturer and end user

Answer 2

Middleman

Question 3

Any intermediary with legal authority to act on behalf of the manufacturer

Answer 3

Agent or broker

Question 4

An intermediary who sells to other intermediaries, usually to retailers; term usually aplies to consumer markets

Answer 4

Wholesaler

Question 5

An intermediary who sells to consumers

Answer 5

retailer

Question 6

An imprecise term, usually used to describe intermediaries who perform a variety of distributive functions

Answer 6

distributor

Question 7

What are the three types of functions marketing channel intermediaries perform?

Answer 7

Transactional Functions
Logistical Function
Facilitating Function

Question 8

Purchasing products for resale or as an agent for supply of a product

Answer 8

buying

Question 9

Contacting potential customers, promoting products, and seeking orders

Answer 9

selling

Question 10

Risk taking

Answer 10

Assuming business risks in the ownership of inventory that can become obsolete or deteriorate

Question 11

Buying, selling, and risktaking are

Answer 11

transactional functions

Question 12

Assorting, Storing, Sorting, Transporting

Answer 12

logistical functions

Question 13

Financiing, grading, arketing info and research

Answer 13

facilitating function

Question 14

What are the four ways intermediaries create value for customers

Answer 14

time, place, forum, and possession

Question 15

having a product or service when you want it

Answer 15

time utility

Question 16

having a product or service available where you want it

Answer 16

place utility

Question 17

making a product more appealing to buyers

Answer 17

form utilities

Question 18

efforts by intermediaries to help buyers take possession of a product or service

Answer 18

possession utility

Question 19

a channel in which the producer and ultimate consumers deal diretly with each other

Answer 19

direct channel

Question 20

a channel in which intermediaries are inserted between the producer and consumer

Answer 20

indirect channel

Question 21

When an indirect channel contains a producer, a retailer, and consumer what is likely to be true?

Answer 21

most common when a retailer is large and can buy in large quantities from a producer, or when the cost of inventory makes it too expensive to use a wholesaler (toyota)

Question 22

If a indirect channel contains a producer, a wholesaler, a retailer and a consumer what is probably true?

Answer 22

low-cost, low unit value item

Question 23

If the chain has an agent wholesaler retailer,

Answer 23

many small manufacturers and many small retailers

Question 24

When are direct channels used for business products?

Answer 24

When buyers are large and well defined, he sales effort requires extensive negotiations, and the products are of high unit value and require hands-on expertise

Question 25

If a marketing channel for business products uses an industrial distributor,

Answer 25

the industrail distributor performs a variety of marketing channel functions including selling, stocking, delivering, and financing

Question 26

emploring the internet to make products and services available for consumption or use by consumers or organizational buyers

Answer 26

electronic marketing channels

Question 27

allowing consumers to buy products by interaction with various advertising media without a face-to face meeting with a salesperson

Answer 27

direct marketing channels (ll bean)

Question 28

The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaiinng and building relationships with customers

Answer 28

multichannel marketing

Question 29

an arrangement whereby a firm reaches different buyers by using two or more different types of channels for tyhe same basic product (pharmacies

Answer 29

dual distribution

Question 30

one firm's marketing channel being used to sell another firm's products

Answer 30

strategic channel alliances

Question 31

Professionally managed and certrally coordinated marketing channels designed to achieve channel economies and maimum marketing impact

Answer 31

vertical marketing systems

Question 32

What are the three major types of vertical marketing systems

Answer 32

corporate, contractual, administered

Question 33

The combination of successive stages of production and distribution under a single ownship is called

Answer 33

corporate vertical marketing system *Ralph Lauren, goodyear, apple

Question 34

What is a retailer owning a manufacturing operation

Answer 34

backward integration *Kroger, Tiffany,(

Question 35

A producer owning intermediary at the next level down in the channel

Answer 35

forward integration

Question 36

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater function ecnonmies and mareting impact than they could alone?

Answer 36

Contractual (Most pop. VMS)

Question 37

What are the three variations on contractual systems

Answer 37

Wholesaler-sponsoered voluntary chains, Retailer-sponsored cooperatives, Franchising

Question 38

A wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts (IGA, Ben Franklin)

Answer 38

Whoesaler sponsored voluntray chains

Question 39

Small, independent retailers form an organization thart operates a wholesale facility cooperately (Co-ops)(Ace Hardware)

Answer 39

retailer sponsored cooperatives

Question 40

A contractual arrangement between and parent company and an individual firm that allows the franchisee to operate a certain type of business under an exstablished name and according to swpecific rules

Answer 40

franchise

Question 41

What are the four types of franchise agreements?

Answer 41

Manufacturer-sponsored retail franchise systems, Manufacturer sponsored wwholesale franchise, Service spnonsored retail franchise, Service-sponsored francihse systems

Question 42

Achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership

Answer 42

Administered vertical marketing system

Question 43

What are the three levels of density in retail distribution?

Answer 43

intensive, exclusive, selective

Question 44

When a firm tries to place aits products or services in as many outlets as possible (Coca-cola)

Answer 44

intensive

Question 45

When only one retail outlet in a specific geographical area carris the firm's products (Gucci)

Answer 45

Exclusive

Question 46

When a firm selects a few retail outlets in a specific geographical area to carry its products (Dell)

Answer 46

selective distributionWhat are the four buyer requiremens?

Question 47

information conveninence, variety, pre/postsale service

Answer 47

a

Question 48

Arises when one channel member believes another channel member is engaged in behavior that prevent it from achieving its goal

Answer 48

channel conflict

Question 49

Occurs between different levels in the marketing channel--between say a manufacturer and wholesaler?

Answer 49

vertical conflict

Question 50

What are three sources of vertical conflict?

Answer 50

disintermediation (buying products direct) disagreements over how profit margins are distributed amoung channel members, manufacturers believe whole/retail are not giving products adequate attention

Question 51

Occurs between intermediaries at the same level in a marketing channel (target vs target)

Answer 51

horizontal conflict

Question 52

What are two types of horizontal conflict

Answer 52

increasing distribution size | Dual distrubution causing different types of retailers to carry product (Goodyear vs sams)

Question 53

A channel member that coordinates, directs, and supports other channel members

Answer 53

channel captains

Question 54

Those activities that focs on getting the right amount of the right products to the right place a the right time at the lowest possible cost

Answer 54

logistics

Question 55

The various firms involved in performing th eactiviies required to create and deliver a product or service to consumers or industrial users

Answer 55

supply chain

Question 56

A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the final consumer.

Answer 56

supply chain

Question 57

the integration and organization of information and logistics activities accross firmsin a supply chain for the purpose of creating and delivering products services that provide value to consumers

Answer 57

supply chain management

Question 58

What are the three steps to aligning a supply chain with marketing strategy

Answer 58

understand the customer understand the supply chain harmonize the supply chain with the marketing strategy

Question 59

Expenses associated with transportation, materials handling, and warehousing, inventory, stockouts, order processing, and return products handling

Answer 59

total logistics costs

Question 60

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

Answer 60

customer service

Question 61

the time between the ordering of an item and when it is received

Answer 61

order cycle/replenishment time

Question 62

the time between the ordering of an item and when it is received

Answer 62

order cycle/replenishment time

Question 63

quick response and efficient consumer response delivery systems

Answer 63

meh

Question 64

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

Answer 64

vendor managed inventory

Question 65

A process of reclaiming recyclable and reusable materials, returns, and reworkds from the point of consumption or use for repair, remanufacturing, redistribution, or disposal

Answer 65

reverse logistics