Deck 15: Managing Marketing Channels and the Supply Chain

Question 1

In an ideal supply chain, materials of all kinds are handled as many times as possible.

Answer 1

False

Question 2

When marketing planning, a good channel decision is the most important within the entire planning process because is does leads to market advantage over competitors.

Answer 2

True

Question 3

A producer can always grant an intermediary an exclusive territory for sales purposes.

Answer 3

False

Question 4

Often, channel members adopt an approach of utilizing their unique competencies to influence others in the channel.

Question 5

The value chain portrays a mixture of primary and support activities utilized by an organization to design, produce, market, deliver, and support its products.

Question 6

A channel is a system of interdependent relationships among a set of organizations that facilitates the exchange process.

Question 7

Receiving and properly processing customer orders is a critical step in getting product moving through the supply chain.

Question 8

Most post-mortems on the cause of the dot-com bust point to poor channel and supply chain practices as the No.1 reason so many of those initial e-marketers failed.

Question 9

The degree of push versus pull used is fundamental in framing the channel structure and relationships that are likely to optimize a product's success.

Question 10

Collecting market and competitive information helps only one member of the channel continue to offer the right product mix at the right prices.

Question 11

Many organizations are beginning to consider their customers-both end-users and within a channel-as less important members of a value network.

Question 12

In reality, cutting out intermediaries is always a guarantee of saving consumers' money.

Question 13

Unresolved channel conflict will never result in an uncooperative and inefficient channel, but it may impact end-user consumers through inferior products, spotty inventory, and higher prices.

Question 14

Exclusive dealing may be legal if the parties show exclusivity is essential for strategic reasons, such as to maintain product image.

Question 15

Physical distribution, or logistics, is the integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution.

Question 16

Manufacturers' costs would skyrocket if they held the responsibility for interfacing with and delivering product to every one of their end users.

Question 17

Exclusive distribution often arises because a significant personal selling effort is required with the consumer before product purchase.

Question 18

Effective transportation management is the only way that many firms can keep a lid on costs while also optimizing delivery options for customers.

Question 19

Channel intermediaries enhance utilities by providing a wide array of specific functions.

Question 20

A push strategy doesn't mean a manufacturer wouldn't engage in any channel incentives, but rather that the incentives would likely be greatly reduced versus a pull strategy.

Question 21

The _____________ eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

A) Value Network
B) Value Co-creation
C) Network Organization
D) Nimbleness
E) Intermediaries

Question 22

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ___________________.

A) Consumers and transporters
B) Producers and transporters
C) Producers and consumers
D) Producers and retailers
E) None of the above

Question 23

__________ take title to the product.

A) Channel Distribution
B) Merchant Intermediaries
C) Agent Intermediaries
D) Direct Channel
E) Indirect Channel

Question 24

Jenn has recently decided to take a value network approach to create a competitive advantage over her competitors.She is trying this because ___________________.

A) She frees up internal resources
B) Her firm can be more nimble in addressing external uncontrollable opportunities and threats
C) She has an advantage over firms that have high costs associated with performing many of the value chain functions
D) A & C
E) A, B & C

Question 25

A ________________represents all organizations involved in supplying a firm, the members of its channels of distribution, and its end-user consumers and business users.

A) Physical distribution system
B) Supply chain
C) Supply chain management
D) Breaking bulk
E) Accumulating bulk

Question 26

_________________ were formerly called middlemen, and play a role in the exchange process between producer and consumer.

A) Value networks
B) Value co-creators
C) Network organizations
D) Value chains
E) Intermediaries

Question 27

To be ______________ is to be in a position to be maximally flexible, adaptable, and speedy in response to the many key change drivers affecting business today such as rapidly shifting technology, discontinuous innovation, fickle consumer markets, and relentless market globalization.

A) Value Network
B) Value Co-creation
C) Network Organization
D) Nimble
E) Intermediaries

Question 28

A (n)_________________ contains one or more intermediary levels, as represented by all the other examples within each exhibit.

A) Channel distribution
B) Merchant intermediaries
C) Agent intermediaries
D) Direct channel
E) Indirect channel

Question 29

The _____________ is thought of as an overarching system of formal and informal relationships, within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space.

A) Value network
B) Virtual organization
C) Network organization
D) Value chain
E) Intermediaries

Question 30

______________________ is the aim of participating suppliers, customers, and other stakeholders in which the members of the network combine capabilities according to their expertise and the competencies required from the situation.

A) Value Network
B) Value Co-creation
C) Network Organization
D) Nimbleness
E) Intermediaries

Question 31

The coordination of value-adding flows among the entities in a way that maximizes overall value delivered and profit realized is called _______________.

A) Physical distribution
B) Supply chain
C) Supply chain management
D) Breaking bulk
E) Accumulating bulk

Question 32

Rock Solid is a company that manufactures different mixes of mortar for building projects.Recently it decided to outsource its warehousing in order to focus more on making great mortar mixes.This is an example of _________________.

A) Network organization
B) Value Network
C) Virtual Organization
D) A & B
E) A & C

Question 33

Intermediaries engage in ________________ when they accumulate products from several sources and then make those products available down the channel as a convenient assortment for consumers.

A) Creating assortments
B) Reducing transactions
C) Transportation and storage functions
D) Facilitating functions
E) Disintermediation

Question 34

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut __________ and maximize ____________ every step of the way to market.

A) Costs, process efficiencies
B) Process efficiencies, costs
C) Costs, profits
D) Time inefficiencies, profits
E) None of the above

Question 35

The function of _________________ occurs within a channel to better match quantities needed to space constraints and inventory turnover requirements.

A) Physical distribution
B) Supply chain
C) Supply chain management
D) Breaking bulk
E) Accumulating bulk

Question 36

Some industries take in product from multiple sources and transform it, often through sorting it into different classifications for sales through the channel.This is an example of ______________.

A) Physical distribution
B) Supply chain
C) Supply chain management
D) Breaking bulk
E) Accumulating bulk

Question 37

Channel intermediaries enhance utilities by providing a wide array of specific functions including ________________.

A) Physical distribution functions
B) Transaction and communication functions
C) Facilitating functions
D) A & B
E) A, B & C

Question 38

A channel of distribution consists of interdependent entities that are ___________________.

A) Aligned for the purpose of transferring possession of a product from producer to consumer or business user
B) Aligned for the purpose of creating cost efficiencies only
C) Interconnected to perform manufacturing before a transporter takes the finished product
D) Working together to develop new products
E) None of the above

Question 39

_____________ perform a variety of physical distribution, transaction and communication, and facilitating functions that make exchange possible.

A) Channel Distribution
B) Merchant Intermediaries
C) Agent Intermediaries
D) Direct Channel
E) Indirect Channel

Question 40

A ________________ has no intermediaries and operates strictly from producer to end-user consumer or business user.

A) Channel Distribution
B) Merchant Intermediaries
C) Agent Intermediaries
D) Direct Channel
E) Indirect Channel

Question 41

Ultimately, ________________ can occur in which channel members experience disagreements and their relationship can become strained or fall apart.

A) Channel power
B) Channel conflict
C) Expert power
D) Reward power
E) Coercive power

Question 42

_____________ is the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, and is common in the electronic channel.

A) Creating Assortments
B) Reducing Transactions
C) Transportation and Storage Functions
D) Facilitating Functions
E) Disintermediation

Question 43

____________ consists of vertically aligned networks behaving and performing as a unified system.

A) Insourcing
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 44

Through a __________________, retailers contract for varying degrees of exclusive dealings with a particular wholesaler.

A) Franchise organization
B) Retailer cooperative
C) Wholesaler cooperative
D) Channel captains
E) Partner relationship management (PRM) strategies

Question 45

In a(n)________________, the sheer size and power of one of the channel members places it in a position of channel control.

A) Insourcing arrangement
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 46

Entrepreneur magazine reports that ________________ remain the highest-potential startup and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.

A) Franchise organizations
B) Retailer cooperatives
C) Wholesaler cooperatives
D) Channel captains
E) Partner relationship management (PRM) strategies

Question 47

The goal of the ________________ is to share resources, especially knowledge-based resources, to effect optimally profitable relationships between two channel members.

A) Lieutenant
B) Retailer Cooperative
C) Wholesaler Cooperative
D) Channel Captain
E) Partner Relationship Management (PRM) Strategies

Question 48

___________ is the approach that is attractive for many firms whose core competencies do not include elements of supply chain management.

A) Insourcing
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 49

By combining efforts, ____________ gain advantages through enhanced buying and distribution power, that allow them to better compete with supermarket chains than if the stores were buying separately.

A) Franchise organizations
B) Retailer cooperatives
C) Wholesaler cooperatives
D) Channel captains
E) Partner relationship management (PRM) strategies

Question 50

Introducing one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange.

A) Creating assortments
B) Reducing transactions
C) Transportation and storage functions
D) Facilitating functions
E) Disintermediation

Question 51

In an administered VMS, the sheer size and power of one of the channel members places it in a position of channel control.The lead player in such situations may be referred to as the ______________, signifying its ability to control many aspects of that channel's operations.

A) Lieutenant
B) Retailer cooperative
C) Wholesaler cooperative
D) Channel captain
E) Partner relationship management (PRM) strategies

Question 52

Financing, market research, risk-taking, and other services are considered to be _________________________.

A) Creating assortments
B) Reducing transactions
C) Transportation and storage functions
D) Facilitating functions
E) Disintermediation

Question 53

In ________________ a channel member has invested in backward or forward vertical integration by buying a controlling interest in other intermediaries.

A) Insourcing arrangement
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 54

Nadia works for a major soda distributor.Recently the company has begun to discuss buying a transportation company to move their product from their own manufacturing facility to the consumer.This is an example of _______________.

A) Insourcing
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 55

A(n)________________ creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity.

A) Insourcing arrangement
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 56

A (n)__________________ consists of otherwise independent entities that are bound together legally through contractual agreement.

A) Insourcing arrangement
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 57

Producers make money by pushing finished goods out the door and into the channel of distribution.As such, the most commonly provided channel intermediary activities are _______________.

A) Creating assortments
B) Reducing transactions
C) Transportation and storage functions
D) Facilitating functions
E) Disintermediation

Question 58

Facilitating functions performed by intermediaries include a variety of activities that help fulfill completed transactions and also maintain the viability of the channel relationships.These include ________________.

A) Financing
B) Market research
C) Buying
D) A & B
E) A & C

Question 59

It is possible that a(n)________________ can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation.An example of this is the relationship between Wal-Mart and Procter& Gamble.

A) Insourcing arrangement
B) Vertical Marketing System (VMS)
C) Corporate VMS
D) Contractual VMS
E) Administered VMS

Question 60

______________ is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

A) Channel power
B) Channel conflict
C) Expert power
D) Reward power
E) Coercive power

Question 61

Traditionally, logistics was thought of as an internal flow going one direction- _______________.

A) Outbound Logistics
B) Inbound Logistics
C) Reverse Logistics
D) Stock Out
E) Enterprise Resource Planning Systems (ERP Systems)

Question 62

________________ may take the form of sharing important product knowledge.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 63

______________ results from contracts such as franchise agreements or other formal agreements.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 64

____________ are appropriate for intensive distribution, as their sales rely on the consumer seeing the product, feeling an immediate want, and being able to purchase now.

A) High technology goods
B) Durable goods
C) Convenience goods
D) Impulse goods
E) Shopping goods

Question 65

One example of a push strategy is _______________.

A) Couponing
B) Consumer rebates
C) Sales contests
D) Paying a slotting allowance
E) Both C and D

Question 66

______________ involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 67

The motivating force for suppliers to work with large chain stores is that the stores can offer huge ______________ in the form of writing big orders.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power

Question 68

____________ implies that many of the promotional activities take place from the manufacturer downward through the channel of distribution.

A) Selective distribution
B) Exclusive distribution
C) Push strategy
D) Pull strategy
E) Intensive distribution

Question 69

______________, goods for which a consumer may engage in a limited search, are candidates for selective distribution.

A) High technology goods
B) Durable goods
C) Convenience goods
D) Impulse goods
E) Shopping goods

Question 70

Intensive distribution is typically associated with low-cost ________________.

A) High technology goods
B) Durable goods
C) Convenience goods
D) Impulse goods
E) Shopping goods

Question 71

When the objective is to obtain maximum product exposure throughout the channel, a(n)________________ strategy is designed to saturate every possible intermediary and especially retailers.

A) Distribution intensity
B) Intensive distribution
C) Channel length
D) Logistics
E) Shopping goods supply

Question 72

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider all of the following except _______________.

A) The type of products involved
B) Cost issues among the various options
C) Strength of belief in the accuracy of the sales forecast
D) Likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel
E) None of the above

Question 73

___________ is not a source of channel power.

A) Reward power
B) Referent power
C) Legitimate power
D) Consumer power
E) Expert power

Question 74

A manufacturer employing a ________________ focuses much of its promotional investment on the end-user consumer.

A) Selective Distribution
B) Exclusive Distribution
C) Push Strategy
D) Pull Strategy
E) Shelf Fee

Question 75

_______________ is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing.

A) Selective distribution
B) Exclusive distribution
C) Widespread distribution
D) Convenience distribution
E) Intensive distribution

Question 76

Unresolved channel conflict can result not only in an uncooperative and inefficient channel, but it can also ultimately impact end-user consumers through ________________.

A) Inferior products
B) Spotty inventory
C) Higher prices
D) A & B
E) A, B & C

Question 77

_________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

A) Outbound logistics
B) Inbound logistics
C) Reverse logistics
D) Order processing
E) Enterprise Resource Planning Systems (ERP Systems)

Question 78

______________ also often arises because a significant personal selling effort is required with the consumer before product purchase.

A) Selective Distribution
B) Exclusive Distribution
C) Push Strategy
D) Pull Strategy
E) Shelf Fee

Question 79

Distribution strategies can be __________________.

A) Intensive
B) Selective
C) Exclusive
D) A & C
E) A, B & C

Question 80

When a channel member is respected, admired, or revered based on one or more attributes, that member enjoys ________________ within the channel.

A) Coercive power
B) Reward power
C) Expert power
D) Referent power
E) Legitimate power