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

Question 1

Marketing channels create several types of utility including time, place, possession, and sometimes form utility.

Answer 1

True

Question 2

The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities.

Answer 2

True

Question 3

Supply chain management combines two or more stages of the marketing channel under one management.

Answer 3

False

Question 4

It is usually easier to change marketing channels than to change prices or promotion.

Question 5

Intermediaries are marketing institutions, such as retailers and wholesalers, which perform marketing functions necessary to direct products to customers.

Question 6

Agents are seldom used in channels for consumer products.

Question 7

Buyers' behavior is unimportant to channel members.

Question 8

A marketing channel is not the same thing as a distribution channel.

Question 9

The services or responsibilities provided by some intermediaries can be eliminated effectively without causing an increase in the services or responsibilities provided by other middlemen.

Question 10

Supply chain management includes only producers, wholesalers, retailers, and customers.

Question 11

Marketing intermediaries never establish pricing policies and terms of sale.

Question 12

The end result of eliminating intermediaries is a cost benefit.

Question 13

Place utility is created by the customer having access to the product to use or store for future use.

Question 14

Middlemen bridge the gap between suppliers (or producers) and buyers (or consumers).

Question 15

The cost of a business product may affect the distribution channel selected for it.

Question 16

Distribution decisions have little influence on the rest of the marketing mix.

Question 17

Sometimes a marketing channel is quite simple and short, perhaps running directly from a producer to the final user or consumer.

Question 18

Long-term commitments usually characterize the relationships among channel members.

Question 19

Middlemen can reduce the cost of exchanges.

Question 20

The shortest possible distribution channel would be producer to retailer to consumer.

Question 21

Retailers are frequently found in business product channels.

Question 22

Agents are used in business channels for standardized products and in situations in which information-gathering and selling functions are important.

Question 23

Both a manufacturers' agent and an industrial distributor may be used when the organizational marketer wishes to cover a larger geographic area but does not maintain a sales force.

Question 24

Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.

Question 25

The success or failure of a competitor's marketing channel may encourage or dissuade an organization from considering a similar approach.

Question 26

The exposure of the channel in terms of the number and kinds of outlets is influenced by the sellers' characteristics.

Question 27

Intensive distribution is appropriate for shopping products.

Question 28

Like manufacturers' agents, industrial distributors do not take title to products or carry inventories.

Question 29

Business buyers prefer to deal with producers through intermediaries and thus eliminate much of the burden of sorting out details.

Question 30

Small firms are more likely to be in a position to have more distribution centers that may reduce delivery times to customers.

Question 31

When higher-priced or technically complex business products are involved, business buyers prefer to deal directly with producers rather than through intermediaries.

Question 32

Marketers of complex and expensive products such as automobiles will likely employ long channels with many knowledgeable intermediaries.

Question 33

Channel power is an ability related to influence over valued goals of other channel members.

Question 34

Industrial distributors and their agents are typical types of intermediaries found in channels for consumer products.

Question 35

Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.

Question 36

Specialty products that require service information and are consumed over a long period of time are likely to be distributed on an exclusive basis.

Question 37

Dual distribution involves the use of two or more marketing channels for distributing the same products to the same target market.

Question 38

Only producers can be channel captains.

Question 39

Selective distribution is desirable when customer service from a channel member is important.

Question 40

Some marketing channels are organized and controlled by a single leader.

Question 41

Safety stock helps protect an organization against stockouts.

Question 42

The overall safety stock, or inventory needed to prevent a stockout, depends on the general level of prices.

Question 43

The reorder point can be calculated by multiplying the usage rate by the order lead time.

Question 44

Whereas the marketing channel is a group of interrelated organizations that directs products to customers, physical distribution deals with physical movement and storage of products both within and among intermediaries.

Question 45

Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.

Question 46

Channel conflict is necessary to facilitate efficient performance within the channel.

Question 47

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Question 48

The reorder point is computed by multiplying the service standard by the order lead time.

Question 49

Because of its speed, electronic order processing provides greater flexibility than manual processing in unique situations.

Question 50

In vertical integration, control is expanded to two or more successive links of production or distribution.

Question 51

A distribution system's lowest total cost is the result of using a combination of the cheapest functions.

Question 52

Franchising is typical of the administered vertical marketing system.

Question 53

During order entry, a customer's credit rating is checked by the credit department.

Question 54

The main objectives of physical distribution are decreasing costs while increasing customer service.

Question 55

Drawing together the processes and functions of two or more stages of the channel under one management is horizontal integration.

Question 56

Order processing can be manual or electronic.

Question 57

Inventory management involves developing and maintaining adequate assortments of products to meet customers' needs.

Question 58

Producers do not engage in horizontal integration.

Question 59

It is rare for a channel member to manage the physical distribution of goods for all supply chain members involved in exchanges.

Question 60

A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration.

Question 61

Public warehouses do not furnish security for products being used as collateral for loans.

Question 62

Exclusive dealing occurs when a supplier stipulates that a channel member must purchase additional products besides the one it wants.

Question 63

Product availability is dependent on transportation functions.

Question 64

Bonded storage means that goods will not be released until U.S. customs duties or federal or state taxes or other fees are paid.

Question 65

Pipelines are not one of the major transportation modes for moving goods between cities in the United States.

Question 66

Rail transportation is the fastest yet most expensive form of shipping.

Question 67

Cost, speed, load flexibility, dependability, frequency, and accessibility are considered when choosing a transportation mode.

Question 68

Warehousing involves designing and operating facilities to store and move goods.

Question 69

Freight forwarders are companies that offer several shipment methods, including rail, truck, and air service.

Question 70

Transportation is the least expensive physical distribution function.

Question 71

Unit loading is grouping one or more boxes on a skid.

Question 72

The use of a freight forwarder that consolidates shipments from several organizations into efficient lot sizes usually increases transit time and sometimes raises shipping costs.

Question 73

A manufacturer may try to prohibit intermediaries from selling its products outside designated sales territories to tighten control over distribution of its products.

Question 74

A producer that sells similar products through different channels under different brand names is engaging in dual distribution.

Question 75

Private warehouses are usually leased or purchased when a firm believes its warehouse needs are so stable that it can make a long-term commitment to fixed facilities.

Question 76

Public warehouses are business organizations whose primary activity is providing storage and related physical distribution facilities on a rental basis to government organizations.

Question 77

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

Question 78

On-time deliveries may give a firm a competitive edge.

Question 79

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

Question 80

Because costs for small shipments (under 500 pounds) are sharply higher than costs for full loads in railroad cars and trucks, firms share costs and services by consolidating shipments.