Chapter 14

Question 1

4 Types of Distribution Channels

Answer 1

Direct Channel
Indirect Channel
Electronic Marketing
Multichannel Distribution

Question 2

Define Direct Channel Distribution

Answer 2

producer gets goods to consumer

Question 3

Define Indirect Channel Distribution

Answer 3

firm selling via non-affiliated seller

Question 4

Define Electronic Marketing Channels

Answer 4

selling via internet

Question 5

Define Multichannel Distribution

Answer 5

reaching buyers using two or more different types of marketing channels

Question 6

3 Types of Vertical Marketing Systems

Answer 6

Corporate Systems
Contractual Systems
Administered Systems

Question 7

What is a corporate marketing system

Answer 7

combining successive stages or production and distribution under single ownership

Question 8

What are the two types of ownership in a corporate marketing system

Answer 8

Forwards integration and backwards integration

Question 9

What is a contractual marketing system

Answer 9

independent production and distribution firms combine efforts to achieve greater sales and profits

Question 10

What is an administered marketing system

Answer 10

no ownership - system relies on channel captain to move products through distribution channel

Question 11

Define Channel Captain

Answer 11

channel member that coordinates, directs, and supports other channel members (ex: Walmart)

Question 12

2 Types of Channel Conflict

Answer 12

Vertical Conflict

Horizontal Conflict

Question 13

3 Types of Distribution Coverage

Answer 13

Intensive
Selective
Exclusive

Question 14

Define Merchant Wholesaler

Answer 14

independently owned firm, take title to merchandise they handle

Question 15

2 Types of Agents

Answer 15

Manufacturer’ Agent

Selling Agent

Question 16

Define Manufacturer Agent

Answer 16

work for several producers and carry non-competitive, complementary merchandise in an exclusive territory (aka manufacturer’s representatives)

Question 17

Define Selling Agents

Answer 17

represent single producer and are responsible for the entire marketing function of that producer

Question 18

Define Broker

Answer 18

independent firms or individuals whose principal function is to bring buyers and sellers together to make sales

Question 19

4 Key Logistic Functions in a Supply Chain

Answer 19

• Transportation
• Warehousing and Materials Handling
• Order Processing
• Inventory Management

Question 20

6 Factors in choosing transportation

Answer 20

Cost
Time 
Capability
Dependability
Accessibility
Frequency

Question 21

4 Types of Inventory Costs

Answer 21

Capital Costs
Inventory Service Costs
Storage Costs
Risk Costs

Question 22

3 Supply Chain Inventory Strategies

Answer 22

• Just-in-time Concept
• Vendor Managed Inventory
• Reverse Logistics