Chat with AIExam 10: Value Chain Strategy
If a company decides to distribute its products through one retailer or dealer in the trading area,then the company is following a(n) _____ distribution strategy.
(39) 
VerifiedC
Discuss the factors that influence distribution decision.
(44) VerifiedThe factors that influence the distribution decision include buyer considerations,product characteristics,and financial and control factors.
Buyer Considerations-Manufacturers look at the amount and frequency of purchases by buyers,as well as the margins over manufacturing costs that are available to pay for direct selling costs.
Competitive Considerations-Distribution channels are an important aspect of how a company differentiates itself and its products from others,and this may impel decision makers toward increased emphasis on direct channels.The Internet can change the economics of distribution in favor of direct marketing.
Product Characteristics-Companies consider product characteristics in deciding whether to use a direct or distribution-channel strategy.Complex goods and services often require close contact between customers and the producer,who may have to provide application assistance,service,and other supporting activities.
Financial and Control Considerations-It is necessary to decide if resources are available for direct distribution,and,if they are,whether selling direct to end-users is the best use of the resources.Both the costs and benefits need to be evaluated.Direct distribution gives the manufacturer control over distribution,since independent organizations cannot be managed in the same manner as company employees.This may be an important factor to the manufacturer.
A single product makes distribution by the manufacturer economically feasible,whereas the cost of direct sales for a complete line may be prohibitive.
(32) VerifiedFalse
Buying and selling activities by marketing intermediaries reduce the number of transactions for producers and end-users.
(29) Agile supply chains require long-term partnership with suppliers.
(28) Often customers shop for information in one channel,then defect from that channel to make the purchase in another medium.This process is referred to as _____.
(48) Which of the following factors favors direct distribution by the manufacturer?
(47) _____ VMS includes various formal arrangements between channel participants including franchising and voluntary chains of independent retailers.
(43) If a company decides to distribute its products in many of the retail outlets in a trading area that might normally carry such a product,it is using a(n) _____ distribution approach.
(33) _____ is defined as the group of vertically aligned organizations that keep improving a product in moving from basic supplies to finished products for consumer and organizational end-users.
(41) Relationships between the conventional distribution channel participants are rather informal and the members are not closely coordinated.
(35) Channel _____ refers to the strategic shift from one channel to another.
(50) _____ is a network of value chain organizations performing functions that connect goods and services with end-users.
(39) A primary feature of a vertical marketing system is the management (or coordination) of the distribution channel collectively by the organizations involved.
(33) The _____ of distribution is a group of vertically linked independent organizations,each trying to look out for itself,with limited concern for the total performance of the channel.
(38) Which of the following is the final step in selecting the distribution strategy?
(37) Which of the following value-added activities helps to meet buyers' time-of-purchase and variety preferences?
(34) Discuss the impact of e-procurement in business-to-business marketing.
(39) Which of the following value-added activities would most effectively reduce the number of transactions for producers and end-users?
(38) The _____ supply chain seeks to remove waste and manage volatility out of the supply chain by leveling demand.
(37) 
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