Question 1

The combination of successive stages of production and distribution under a single ownership is referred to as a(n)__________.

Accepted Answer

The combination of successive stages of production and distribution under a single ownership is referred to as a corporate vertical marketing system. This means that one company owns multiple stages of the supply chain, such as manufacturing, warehousing, and retailing.

Question 2

Dual distribution refers to

Accepted Answer

Dual distribution refers to an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. This allows the firm to reach a wider range of customers and increase its sales.

Question 3

Pharmaceutical companies sell some of their products to hospitals and clinics directly.They also market other products to large retail chains like Walgreens that distribute them to their stores across the nation.In addition,they sell products to drug wholesalers that sell to the remaining independent drugstores in the U.S.What method of distribution best describes the method used by pharmaceutical companies in this example?

Accepted Answer

The pharmaceutical companies in this example are using multiple methods of distribution. They are selling directly to hospitals and clinics (direct distribution), marketing to large retail chains like Walgreens (vertical distribution), and selling to drug wholesalers who sell to independent drugstores (horizontal distribution). This combination of methods is known as dual distribution.

Question 4

Kraft Foods distributes Starbucks coffee in U.S.supermarkets and internationally using __________.

Accepted Answer

Kraft Foods and Starbucks have a strategic channel alliance where Kraft Foods distributes Starbucks coffee in various channels including supermarkets and internationally.

Question 5

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as __________.

Accepted Answer

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as a strategic channel alliance. This involves forming a partnership or agreement between two firms to leverage each other's distribution channels for mutual benefit.

Question 6

Vertical marketing systems refers to

Accepted Answer

Vertical marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. They involve coordination between the manufacturer, wholesaler, and retailer to present a seamless product offering to the end consumer. This type of system allows for greater efficiency and effectiveness in distribution and marketing efforts.

Question 7

A corporate vertical marketing system refers to

Accepted Answer

The answer of A corporate vertical marketing system refers to
...

Question 8

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Accepted Answer

Corporate vertical marketing systems offer companies more control over their supply sources and resale of products. This is because the system enables the company to own or control various stages of the distribution channel, allowing them to make key decisions regarding distribution and pricing. This level of control provides the company with a competitive advantage and can lead to increased efficiencies and profitability.

Question 9

CPW (Cereals Partners Worldwide)is a __________ designed from the start to be a global business.It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

Accepted Answer

CPW is a strategic channel alliance because it involves General Mills and Nestlé joining forces in manufacturing, marketing, and distribution of cereal products globally. This partnership combines the strengths of both companies to create a competitive advantage in the industry.

Question 10

The General Mills-Nestlé strategic channel alliance

Accepted Answer

The General Mills-Nestlé strategic channel alliance increased the ready-to-eat cereal worldwide market share of these companies. By combining their resources and expertise, General Mills and Nestlé were able to expand their product offerings and distribution channels, resulting in a larger market share.

Question 11

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming?

Accepted Answer

A strategic channel alliance is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming. This is because it allows the company to collaborate with established channel partners in foreign markets, which can reduce the time and cost associated with developing a new distribution network from scratch. Additionally, channel partners in strategic alliances can provide local market knowledge and expertise, which can help the firm adapt its marketing strategy to better suit the needs of the foreign market.

Question 12

Which of the following statements regarding corporate vertical marketing systems is most accurate?

Accepted Answer

Corporate vertical marketing systems can incorporate both forward and backward integration, meaning the company can own and control both the production and distribution stages of the supply chain. This can lead to greater efficiency and control, but may also require significant investment and potentially limit competition. The other statements are not accurate - A describes a contractual vertical marketing system, C and D are generally not true, and E is not necessarily true as corporate vertical marketing systems can be effective for a range of products.

Question 13

An example of a(n)__________ is when Kraft Foods uses the distribution system of Ajinomoto,a major Japanese food company,to market its Maxwell House coffee in Japan.

Accepted Answer

A strategic channel alliance refers to a cooperative agreement between two or more firms to combine resources and capitalize on a new opportunity. In this case, Kraft Foods and Ajinomoto have partnered to leverage Ajinomoto's existing distribution network to market Kraft's Maxwell House coffee in Japan. This allows Kraft to enter the Japanese market more easily and without having to establish their own distribution network.

Question 14

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 130 markets worldwide.

Accepted Answer

A strategic channel alliance is a partnership between two companies to jointly distribute each other's products or services. In this case, Nestlé and General Mills have formed an alliance to distribute General Mills products like Cheerios in about 130 markets worldwide.

Question 15

The three major types of vertical marketing systems are corporate,contractual,and __________.

Accepted Answer

The three major types of vertical marketing systems are corporate, contractual, and administered. Cooperative and manufacturer-dominated are not considered major types of VMS. Delegated and integrated are not commonly used terms to describe types of VMS.

Question 16

In some instances,firms pair multiple channels with a multibrand strategy.The purpose of this strategy would be to __________ of the firm's family brand and differentiate its marketing channels.

Accepted Answer

The answer of In some instances,firms pair multiple channels with...

Question 17

The three major types of vertical marketing systems are administered,corporate,and __________.

Accepted Answer

The three major types of vertical marketing systems are administered, corporate, and contractual. Contractual VMS is based on contracts in which the members agree to cooperate with each other to achieve specific objectives. This type of VMS includes franchises and wholesale-sponsored voluntary chains. Therefore, the best choice is E, contractual.

Question 18

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as __________.

Accepted Answer

The answer of Professionally managed and centrally coordinated marketing channels...

Question 19

Strategic channel alliances refer to

Accepted Answer

Strategic channel alliances refer to a practice whereby one firm's marketing channel is used to sell another firm's products.

Question 20

Rather than compete with large greeting card companies for shelf space in supermarkets,several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment,and in carwashes where customers are waiting and appreciate having something amusing to read.This would be an example of which type of marketing channel strategy?

Accepted Answer

The answer of Rather than compete with large greeting card...

Quiz 12: Managing Marketing Channels and Supply Chains

The combination of successive stages of production and distribution under a single ownership is referred to as a(n) __________.

Dual distribution refers to

Kraft Foods distributes Starbucks coffee in U.S.supermarkets and internationally using __________.

A practice whereby one firm's marketing channel is used to sell another firm's products is referred to as __________.

Vertical marketing systems refers to

A corporate vertical marketing system refers to

Which of the following statements regarding corporate vertical marketing systems is most accurate?

CPW (Cereals Partners Worldwide) is a __________ designed from the start to be a global business.It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

The General Mills-Nestlé strategic channel alliance

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming?

Which of the following statements regarding corporate vertical marketing systems is most accurate?

An example of a(n) __________ is when Kraft Foods uses the distribution system of Ajinomoto,a major Japanese food company,to market its Maxwell House coffee in Japan.

Nestlé and General Mills have __________ to distribute General Mills products like Cheerios in about 130 markets worldwide.

The three major types of vertical marketing systems are corporate,contractual,and __________.

In some instances,firms pair multiple channels with a multibrand strategy.The purpose of this strategy would be to __________ of the firm's family brand and differentiate its marketing channels.

The three major types of vertical marketing systems are administered,corporate,and __________.

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as __________.

Strategic channel alliances refer to