Question 1

Scenario 13.1
Use the following to answer the questions.
Kelly Rose, Inc. markets several different brands, under its own Kelly Rose name label, as well as others. Its primary brands, such as Kelly Rose, Kelly & Ko, and KRC, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. The wholesale-based brands division is positioned as customer-focused and cost-efficient. Its premium brands division includes labels such as Saffie Campbell, Martyn Curry, and Costura Moderno. These premium brands are sold through stores that the Kelly Rose company owns.
-Refer to Scenario 13.1. The Kelly & Ko brand is sold only at J.C.Penney's. This is an example of ____ distribution.

Accepted Answer

The exclusive distribution strategy is being used for the Kelly & Ko brand, as it is only sold at J.C.Penney's, rather than being available through multiple retailers.

Question 2

Using a freight forwarder usually

Accepted Answer

The answer of Using a freight forwarder usually
...

Question 3

Suppose that Garrison Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing. Garrison is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices?

Accepted Answer

Exclusive dealing occurs when a supplier restricts a distributor or retailer from selling products of a competitor. In this scenario, Anheuser-Busch is requiring Garrison Distributing to not carry Miller Brewing's products, which is a form of exclusive dealing.

Question 4

Scenario 13.1
Use the following to answer the questions.
Kelly Rose, Inc. markets several different brands, under its own Kelly Rose name label, as well as others. Its primary brands, such as Kelly Rose, Kelly & Ko, and KRC, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. The wholesale-based brands division is positioned as customer-focused and cost-efficient. Its premium brands division includes labels such as Saffie Campbell, Martyn Curry, and Costura Moderno. These premium brands are sold through stores that the Kelly Rose company owns.
-Refer to Scenario 13.1. If Kelly Rose were to distribute its Saffie Campbell brand through its company-owned stores and through wholesalers, to major department stores, then Kelly Rose would be using ____ distribution.

Accepted Answer

Multichannel distribution involves selling products through multiple channels, such as company-owned stores and wholesalers to major department stores, as described in the scenario.

Question 5

You are the head of supply-chain management at a large manufacturing company in the Midwestern United States. You just returned from a series of workshops on how technology is being deployed by different companies around the world to improve their supply-chain management activities. You are excited about the prospect of increasing the use of technology in your firm. Which one of the following reasons would you use to convince your firm's CEO to invest more money in technology for supply-chain management?

Accepted Answer

The best reason to invest in technology for supply-chain management is to create a more effective process for matching inventory needs to manufacturing requirements. This will lead to better management of inventory levels, reducing the risk of stock-outs and excess inventory, and ultimately improving overall efficiency and profitability. Eliminating product defects, errors in financial reporting, reducing marketing costs, or increasing the sales force's success rate may be important objectives for the firm, but they are not directly related to supply-chain management.

Question 6

HP Computers is a nationally recognized manufacturer of computers for the small business and home markets. If HP were to order one of its wholesalers not to carry any computer products other than those made by HP, this arrangement would be called

Accepted Answer

This arrangement would be called exclusive dealing, as HP would be requiring the wholesaler to only carry its products and not those of any other computer manufacturer.

Question 7

Scenario 13.1
Use the following to answer the questions.
Kelly Rose, Inc. markets several different brands, under its own Kelly Rose name label, as well as others. Its primary brands, such as Kelly Rose, Kelly & Ko, and KRC, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. The wholesale-based brands division is positioned as customer-focused and cost-efficient. Its premium brands division includes labels such as Saffie Campbell, Martyn Curry, and Costura Moderno. These premium brands are sold through stores that the Kelly Rose company owns.
-Refer to Scenario 13.1. Which of the following is most likely the primary factor Kelly Rose, Inc. used when selecting the marketing channel for its Costura Moderno brand?

Accepted Answer

The primary factor in selecting the marketing channel for its Costura Moderno brand, a premium brand, is likely the product attributes. Premium brands often require a specific type of marketing and distribution channel to maintain their high-end image and ensure an appropriate customer experience.

Question 8

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to

Accepted Answer

Prohibiting intermediaries from selling products outside designated sales territories allows manufacturers to have greater control over the distribution of their products. This helps to ensure consistent pricing, product availability, and branding across different markets.

Question 9

Scenario 13.2
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
-Refer to Scenario 13.2. When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers, he was suggesting a method called ____, where Star would be the ____.

Accepted Answer

The answer of Scenario 13.2
Use the following to answer the...

Question 10

Who or what determine(s) under what circumstances channel management practices violate the principle that the public is best served by protecting competition and free trade and therefore must be restricted?

Accepted Answer

Courts and regulatory agencies are responsible for determining whether channel management practices violate the principle of protecting competition and free trade. They do this through legal proceedings and investigations, and may impose restrictions or penalties on companies found to be engaging in anticompetitive behavior. The Federal Trade Commission is a regulatory agency that specifically focuses on promoting and protecting competition in the marketplace. While consumers and competitors may have opinions on the impact of specific channel management practices, they do not have formal authority to determine whether they are in violation of antitrust laws.

Question 11

Scenario 13.2
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
-Refer to Scenario 13.2. Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers?

Accepted Answer

The answer of Scenario 13.2
Use the following to answer the...

Question 12

You have spent the last 20 years of your career in various marketing channel management roles with a variety of companies. One of the things you have learned is that channel conflict can be very destructive to all members of the marketing channel. Which of the following actions would you take to ensure that channel conflict does not occur in your current role?

Accepted Answer

By establishing clear roles and responsibilities for each member of the channel, each member will know what they are responsible for and what to expect from others. This can help avoid conflicts that arise from misunderstandings or unclear expectations. Encouraging each member to act in their self-interest (A) can lead to competition and conflict between members. Handling a diversified set of competing products (B) may also lead to conflicts among members. Minimizing communication (C) can lead to misunderstandings and lack of coordination, which may exacerbate conflicts. Maintaining loosely-defined roles and responsibilities (E) can also lead to misunderstandings and conflict as each member may not know what they are responsible for, leading to confusion and potential finger-pointing.

Question 13

Scenario 13.2
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
-Refer to Scenario 13.2. Currently, Star is using the ____ approach to distributing its janitorial supplies to its large customers.

Accepted Answer

Star Supplies distributes its products to large businesses on an as-needed basis, with these businesses keeping very little inventory and purchasing in small quantities. This approach aligns with the just-in-time (JIT) distribution strategy, which minimizes inventory costs and delivers products as close as possible to the time they are needed.

Question 14

Logistics Plus is an organization that consolidates shipments from several industrial firms into more efficient lot sizes so that they can be more efficiently transported. What type of transportation company is Logistics Plus?

Accepted Answer

The answer of Logistics Plus is an organization that consolidates...

Question 15

Tying agreements occur when a

Accepted Answer

Tying agreements involve a situation where a supplier requires a buyer to purchase additional products in order to obtain the desired product, which is exactly what choice C describes.

Question 16

Freight transportation companies that offer several different shipment methods are called

Accepted Answer

The answer of Freight transportation companies that offer several different...

Question 17

You are meeting with the new CEO of your company to discuss marketing channel strategies. You are delighted to learn that the CEO actually understands the importance of marketing channels in a firm's sales success. The CEO tells you that his primary concern is that the chosen marketing channel facilitates the firm's ability to make products available when customers want them, and in locations where they want them. He leaves it to you to decide on the appropriate marketing channel. Given his primary concern you should make sure the channel you choose is capable of creating lots of

Accepted Answer

The CEO's primary concern is the ability to make products available when and where customers want them, which refers to time and place utility. Therefore, the appropriate marketing channel should be capable of creating both time and place utility. Option C is the only choice that includes both time and place utility.

Question 18

Your firm is launching a new product that everyone believes is going to be a blockbuster. Everyone is geared up to make this product launch the most successful in the firm's history. Your boss instructs you to make sure the product gets the highest intensity of market coverage the firm can support. To achieve this, you will implement which of the following distribution strategies?

Accepted Answer

Intensive distribution is the most suitable strategy in this scenario as it aims to make the product available to as many customers as possible through multiple channels. This strategy is ideal when the product is highly popular and the company wants to maximize its sales and market share. With intensive distribution, the company can ensure that the product is available in as many retail outlets as possible, making it highly accessible to customers. This will also create a widespread brand awareness and generate more sales.

Question 19

Scenario 13.1
Use the following to answer the questions.
Kelly Rose, Inc. markets several different brands, under its own Kelly Rose name label, as well as others. Its primary brands, such as Kelly Rose, Kelly & Ko, and KRC, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. The wholesale-based brands division is positioned as customer-focused and cost-efficient. Its premium brands division includes labels such as Saffie Campbell, Martyn Curry, and Costura Moderno. These premium brands are sold through stores that the Kelly Rose company owns.
-Refer to Scenario 13.1. Kelly Rose, Inc. uses which type of channel of distribution for its premium brands?

Accepted Answer

Kelly Rose, Inc. sells its premium brands directly through stores that it owns, indicating a short, direct channel of distribution.

Question 20

Scenario 13.2
Use the following to answer the questions.
Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party.
-Refer to Scenario 13.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.

Accepted Answer

If Star decides to pick up and deliver the uniforms with its own trucks, it would be using a direct channel. If they contract this action to a third party, it would be outsourcing. Since Star already has experience in distribution and logistics, it may be more efficient for them to use their own trucks and employees to handle the uniform rental service, making option D the best choice.

Quiz 13: Marketing Channels and Supply-Chain Management