Exam 15: Deliver Value Through Supply Chain Manage-Ment: Channels of Distribution and Logistics

Burger King,Holiday Inn,Avis,and H&R Block tax service are all franchises,which means they are also members of a(n)vertical marketing system (VMS).

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.

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.

Why are direct channels of distribution common in business- to- business markets dealing with high- dollar,high- profit items?

A supply chain relies on profitable relationships all along the way.How might Wal- Mart rely on its marketing partners in order to offer low prices?

Running advertisements in local newspapers,offering credit to buyers,and providing maintenance service for products are all examples of functions provided by channel intermediaries.

Rooms- To- Go furniture retailers perform a channel intermediary facilitating function by providing financing for customers' purchases.

A U.S.wool producer that wanted to export its product to Europe could use a selling agent or a merchandise broker.

Tony Pool Chemical Co.purchased 144 buckets of chlorine tablets over the Internet from Chemical,Inc.,then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store.Chemical,Inc.took title to the pool chemicals but never actually took possession of them.Chemical,Inc.is an example of a .

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