Deck 14: A:marketing Channels and Supply-Chain Management

Question 1

Describe the three forms of vertical marketing systems.

Answer 1

Answer not provided.

Question 2

What advantages do industrial distributors offer? What are some of the disadvantages of using industrial distributors?

Answer 2

Answer not provided.

Question 3

Analyze the total-cost approach to physical distribution.

Answer 3

Answer not provided.

Question 4

Discuss the importance of order processing in the physical distribution system.

Question 5

Compare and contrast horizontal and vertical channel integration.

Question 6

Discuss channel cooperation and conflict. How might each one affect distribution channel functions?

Question 7

Under what circumstances is selective distribution a desirable level of market coverage?

Question 8

Discuss the advantages and disadvantages of channel integration. Who benefits from channel integration?

Question 9

How do marketing channels increase efficiency in exchange situations?

Question 10

Identify and describe the criteria used for selecting transportation modes.

Question 11

What is supply chain management? How can it help marketing channel members?

Question 12

Wholesalers are often criticized for being inefficient and for causing consumers to pay higher prices than they would if there were no wholesalers. Discuss.

Question 13

Explain how electronic data interchange (EDI) and just-in-time (JIT) inventory management might be used in combination to improve physical distribution effectiveness and efficiency.

Question 14

What is a marketing intermediary, and what are the activities that marketing intermediaries perform?

Question 15

What are the key tasks in supply chain management? How does each of these facilitate supply chain management?

Question 16

Compare and contrast the three major levels of market coverage.

Question 17

Why is the choice of warehouse facilities an important strategic consideration?

Question 18

How do marketing channel decisions influence the rest of the marketing mix?

Question 19

How are materials handling techniques important in efficient warehouse operations?

Question 20

What are the three types of utility that marketing channels create, and what do they involve?

Question 21

In a simple economy of five producers and five consumers, there would be ____ transactions possible without an intermediary and ____ transactions possible with one intermediary.

A)ten; twenty-five
B)thirty; ten
C)twenty-five; fifteen
D)sixteen; eight
E)twenty-five; ten

Question 22

Most marketing channels have marketing intermediaries. A marketing intermediary's role is to

A)link wholesalers to other wholesalers.
B)link producers to other middlemen or to consumers.
C)always sell products to wholesalers.
D)not take title to products.
E)always sell products to retailers.

Question 23

Explain the legal ramifications of attempts to control distribution functions.

Question 24

The supply chain includes

A)producers, wholesalers, and retailers.
B)suppliers, producers, intermediaries, and customers.
C)suppliers and suppliers' suppliers.
D)all entities that facilitate product distribution.
E)buyers, seller, marketing intermediaries, and agents.

Question 25

Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called

A)supply chain management.
B)vertical channel integration.
C)industrial management.
D)industrial distribution.
E)marketing management.

Question 26

Consumers receive the benefits of place utility when

A)they have to travel excessively to obtain products they want.
B)retailers remain open 24 hours a day.
C)they can stock up on products they need but not use them right away.
D)they make purchases with credit and debit cards.
E)products are available in locations where consumers want to buy them.

Question 27

Channel decisions are important to marketers mostly because

A)they are relatively flexible to change quickly.
B)consumers value reasonable prices delivered through marketing channels.
C)they dictate what promotional strategies companies should use.
D)many businesses are marketing intermediaries.
E)they involve long-term commitments and affect customer accessibility.

Question 28

A channel of distribution is defined as a group of individuals and organizations that

A)consumes about one-half of every dollar spent on products in the United States.
B)directs the flow of products from producers to customers.
C)links producers to other marketing intermediaries.
D)takes title to products and resells them.
E)manages transportation and warehousing functions.

Question 29

A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a

A)free trade association
B)marketing channel
C)channel of suppliers
D)production line-up
E)chain of retailers

Question 30

The driving force behind marketing channel decisions should be

A)convenience.
B)cost reduction.
C)environmental concerns.
D)customer satisfaction.
E)quality.

Question 31

All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is

A)shifting costs to suppliers.
B)maximizing costs.
C)maximizing technology implementation.
D)cooperation with competitors.
E)customer relationships.

Question 32

Having products available when the customer wants them is called

A)place utility.
B)time utility.
C)availability.
D)possession utility.
E)chronavailability.

Question 33

What links producers to consumers through the purchase and reselling of products or contractual agreements?

A)Marketing intermediaries
B)Distributors
C)Suppliers
D)Middle marketers
E)Marketing channels

Question 34

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are

A)long-term commitments.
B)short-term commitments.
C)easier to change than prices.
D)easier to change than promotion.
E)impossible to change.

Question 35

The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to

A)work independently.
B)avoid cooperation due to antitrust considerations.
C)work with competitors and share information.
D)increase competition among channel members.
E)cooperate and accommodate one another's needs.

Question 36

Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of

A)supply chain management.
B)a vertical marketing system.
C)a horizontal marketing system.
D)channel conflict.
E)dual distribution.

Question 37

Possession utility is best described as

A)products being available in places where the customers wish to purchase them.
B)the customer having access to the product to use now or store and use later.
C)having a company's products available when a customer needs them.
D)being able to legally own a product despite restrictions on trade.
E)getting the products to the consumers in as short of time as possible for ownership.

Question 38

Discuss how the strategic importance of physical distribution is evident in each element of the marketing mix.

Question 39

Eliminating a wholesaler from a marketing channel will

A)cut costs and lower prices.
B)not eliminate the functions performed by that wholesaler.
C)eliminate the functions performed by that wholesaler.
D)lead to lower costs but higher prices.
E)reduce channel conflict.

Question 40

Marketing channels create three types of utility for consumers including

A)place, time, and possession.
B)location, availability, and suitability.
C)time, location, and promotion.
D)retailer, wholesaler, and producer.
E)position, possession, and place.

Question 41

Which of the following is the most commonly used channel for distributing business products?

A)Producer, agents, industrial distributors, organizational buyers
B)Producer, industrial distributors, organizational buyers
C)Producer, agents, organizational buyers
D)Producer, organizational buyers
E)Industrial distributors, organizational buyers

Question 42

Which of the following describes a disadvantage of using industrial distributors?

A)Industrial distributors possess considerable market information.
B)Their marketing exchange relationships are very focused.
C)They are unlikely to handle bulky items or items that are slow sellers.
D)Industrial distributors sell specific brands aggressively.
E)Industrial distributors acquire title to the products and take possession.

Question 43

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is

A)fifteen.
B)five.
C)eighteen.
D)six.
E)twenty.

Question 44

Which of the following is an advantage of using an industrial distributor?

A)These firms are easy to control because they work directly for the producers.
B)Inventory holding costs are minimized because they can store inventory very cheaply.
C)They are closer geographically to all of the producers' customers.
D)They possess a high level of technical knowledge about their products.
E)They help reduce a producer's financial burdens by extending credit to customers.

Question 45

Customers who purchase computer laptops from manufacturer websites are acquiring products through

A)the most efficient channel of distribution.
B)the most common type of marketing channel.
C)a direct-marketing channel.
D)a business-to-business channel of distribution.
E)an indirect-marketing channel.

Question 46

The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?

A)Chewing gum
B)Tobacco
C)Automobiles
D)Hardware
E)Saltine crackers

Question 47

Nationally distributed consumer convenience products are most likely distributed through which of the following channels?

A)Producer, consumers
B)Producer, agents, wholesalers, retailers, consumers
C)Producer, wholesalers, consumers
D)Producer, wholesalers, retailers, consumers
E)Producer, industrial distributor, wholesalers, retailers, consumers

Question 48

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.

A)direct distributor
B)manufacturers' agent
C)industrial distributor
D)producers' agent
E)wholesalers' agent

Question 49

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a

A)retailer.
B)wholesaler.
C)broker.
D)functional middleman.
E)producer.

Question 50

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?

A)Producer, industrial distributors, retailers, consumers
B)Producer, consumers
C)Producer, wholesalers, retailers, consumers
D)Producer, retailers, consumers
E)Producer, agents, wholesalers, retailers, consumers

Question 51

Without wholesalers and other intermediaries,

A)most products would be much less expensive because fewer companies would be handling the product.
B)products would be cheaper because the functions of intermediaries would be eliminated.
C)products would likely be more expensive due to the use of less efficient channel members.
D)products would never be able to make it to the ultimate consumer at any price without passing through intermediaries.
E)many products would be more expensive because retailers would expect more profit.

Question 52

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as

A)direct distribution.
B)producer, retailer, consumer.
C)telemarketing.
D)direct-marketing.
E)indirect marketing.

Question 53

Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?

A)Industrial distributor
B)Direct distribution
C)Retail
D)Wholesaler-sponsored
E)Producer

Question 54

After direct-marketing, the next slightly longer marketing channel adds a(n)

A)retailer.
B)producer.
C)wholesaler.
D)agent.
E)consumer.

Question 55

Organizational buyers are especially partial to direct marketing channels when

A)they buy cheap materials in large quantities.
B)they try a new product for the first time.
C)they are filling an order for a very important customer.
D)a modified rebuy type of decision is involved.
E)expensive and/or complex equipment is involved.

Question 56

Many producers selling on the Internet are using

A)several intermediaries.
B)complex marketing channels.
C)Internet wholesalers, retailers, and agents.
D)supply chain channels.
E)direct-marketing channels.

Question 57

Which of the following is most likely to be a product stocked by an industrial distributor?

A)Tires
B)Exercise equipment
C)Screws
D)Countertops
E)Bananas

Question 58

An independent business that takes title to products and carries inventories is a(n)

A)industrial distributor.
B)intermediary.
C)agency.
D)wholesaler.
E)producer.

Question 59

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?

A)Producer, consumer
B)Producer, wholesaler, retailer, consumer
C)Producer, wholesaler, agent, retailer, consumer
D)Producer, retailer, consumer
E)Retailer, consumer

Question 60

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.

A)producer-to-business buyer
B)producer-to-industrial-distributor-to-business buyer
C)producer-to-agent-to-business buyer
D)equipment
E)consumer

Question 61

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

A)multiple channeling.
B)strategic channel alliance.
C)intensive distribution.
D)dual distribution.
E)market splitting.

Question 62

Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

A)wholesalers
B)brokers
C)agents
D)merchants
E)retailers

Question 63

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.

A)horizontal
B)intensive
C)selective
D)agent
E)exclusive

Question 64

Candy bars and chewing gum are most likely to be distributed through ____ and ____.

A)selective distribution; multiple channels
B)intensive; dual distribution
C)strategic channel alliances; intensive
D)exclusive; a single channel
E)dual distribution; convenience channels

Question 65

Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use ____ distribution.

A)selective
B)extensive
C)intensive
D)exclusive
E)demand-based

Question 66

In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products.

A)intensive
B)exclusive
C)horizontal
D)priority
E)selective

Question 67

Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of

A)dual distribution.
B)vertical integration.
C)horizontal integration.
D)tying agreements.
E)exclusive dealing.

Question 68

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of

A)a strategic channel alliance.
B)exclusive distribution.
C)dual distribution.
D)horizontal channel integration.
E)channel leadership.

Question 69

A producer is not likely to receive ____ from an industrial distributor.

A)selling activities in local markets
B)market information about consumers
C)aggressive promotion of its brand
D)reduced capital requirements
E)a reduced financial burden from customers

Question 70

What is a primary difference between an industrial distributor and a manufacturers' agent?

A)A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
B)A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent.
C)An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent.
D)A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly.
E)An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

Question 71

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)

A)sole intermediary.
B)manufacturers' agent.
C)producers' broker.
D)industrial distributor.
E)channel facilitator.

Question 72

Using only some of the available outlets to distribute a product is called

A)selective distribution.
B)intensive distribution.
C)channel conflict.
D)vertical channel integration.
E)exclusive distribution.

Question 73

Which of the following is least likely to be a factor affecting the selection of marketing channels?

A)Customer characteristics
B)Product attributes
C)Product packaging
D)Competition
E)Environmental forces

Question 74

Fragile products that require special handling are more likely to be distributed through

A)longer channels.
B)shorter channels.
C)Channel D.
D)Channel H.
E)exclusive outlets.

Question 75

When considering the best channel to use, all of the following are true with regard to larger firms except they

A)can use an extensive product mix as a competitive tool.
B)may be better able to negotiate better deals with vendors or other channel members.
C)may have more distribution centers.
D)may have the resources to develop their own sales force.
E)may be better suited to serve customers in a particular region.

Question 76

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

A)When the firm wants specialized personnel to follow up the work of the sales force
B)When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
C)When only one or two channels of distribution are available for products
D)When the sales force is large and the marketer is thinking of cutting it down
E)When customers are highly concentrated in one geographic area

Question 77

Sales are most likely to have a direct relationship to product availability for products that use ____ distribution.

A)selective
B)dual
C)intensive
D)extensive
E)exclusive

Question 78

Durable goods such as television sets and DVD players generally reach their target markets through

A)intensive distribution.
B)channel cooperation.
C)direct marketing.
D)exclusive distribution.
E)selective distribution.

Question 79

The three major levels of intensity at which a company can choose to distribute its products are ____ distribution.

A)narrow, medium, and wide
B)cooperative, conflicting, and integrated
C)intensive, extensive, and exclusive
D)selective, cooperative, and conflicting
E)exclusive, selective, and intensive

Question 80

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

A)dual distribution.
B)industrial distribution.
C)strategic channel alliance.
D)supply chain management.
E)an unethical marketing channel.