Exam 15: Product and Supply Chain Management

F.O.B. origin, freight collect, is a delivery term that shifts all responsibility for freight costs to the buyer.

The three main considerations in structuring a channel of distribution are cost, coverage, and control.

You Make the Call-Situation 3 Who hasn't heard of the energy drink Red Bull? It is the 900-pound gorilla in the growing energy drink market. But Hansen Natural Corporation, maker of Monster energy drink, is giving Red Bull a run for its money. The company reaches its core market of males aged 18 to 32 by flooding retailers with giant (16-ounce) cans of its various energy drink offerings, in essence super-sizing the much smaller cans sold by Red Bull. Its striking packaging and oversized cans are helping Monster make inroads in the growing energy drink market. (Source: Roben Farzad, "Who's Afraid of the Shorts? Not Monster," Business Week, November 28, 2006, p. 40.)

Bovine Ice Cream is a small frozen-dairy business that engages in contractual agreements with transportation intermediaries in order to move its products from its manufacturing facility to distant markets. Bovine Ice Cream is employing ____ for its shipping needs.

The three considerations in building a channel of distribution are

Innovative packaging is frequently a deciding factor for consumers.

Distribution includes both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of products.

The _____ stage of the product development process entails planning for branding, packaging, and other supporting efforts such as pricing and promotion.

The competitive advantage life cycle has three stages, including the ____ stage.

Briefly describe a trademark.

Analysis of competitors' channels is a valuable source of information to a small business that is structuring its own distribution system.

Distribution is essential for tangible goods, but not for intangible goods.

To maintain it performance, the small business must launch a new competitive advantage

All of the following are legitimate sources of new product ideas within the framework of a formal product development process except

When the channel system uses ____, the storage function is transferred to the intermediary.

Considering the business analysis stage of the product development process, a product that is completely new to a small firm should not be added to the product mix, in most cases, unless it is consistent with-or somehow related to-the existing product mix.

A copyright provides protection for the duration of the creator's life, plus

Shippers that own their own means of transport are called common carriers.

If a small firm is to maintain its performance over time, it is essential to

To balance out seasonal use, some sporting goods firms manufacture both snow skis and water skis. This should provide a useful hedge against volatile shifts in market demand.