12. Marketing Channels and Supply Chain Management

Question 0

A set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user

Answer 0

Marketing channel (or distribution channel)

Question 1

The network made up of the company, suppliers, distributors and ultimately customers who ‘partner’ with each other to improve the performance of the entire system

Answer 1

Value delivery network

Question 2

A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Answer 2

Channel level

Question 3

A marketing channel that has no intermediary levels

Answer 3

Direct marketing channel

Question 4

A marketing channel containing one or more intermediary channels

Answer 4

Indirect marketing channel

Question 5

Disagreement among marketing channel members on goals and roles— who should do what and for what rewards

Answer 5

Channel conflict

Question 6

A channel consisting of one or more independent producers, wholesalers and retailers, each a separate business seeking to maximise its own profits

Answer 6

Conventional distribution channel

Question 7

A distribution channel structure in which producers, wholesalers and retailers act as a unified system

One channel member owns the others, has contracts with them or has so much power that they all cooperate

Answer 7

Vertical marketing system (VMS)

Question 8

A vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership

Answer 8

Corporate VMS

Question 9

A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone

Answer 9

Contractual VMS

Question 10

A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

Answer 10

Franchise organisation

Question 11

A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties

Answer 11

Administered VMS

Question 12

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

Answer 12

Horizontal marketing system

Question 13

A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

Answer 13

Multichannel distribution system

Question 14

The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

Answer 14

Disintermediation

Question 15

Designing effective marketing channels by analysing consumer needs, setting channel objectives, identifying major channel alternatives and evaluating those alternatives

Answer 15

Marketing channel design and channel design decisions

Question 16

Stocking the product in as many outlets as possible

Answer 16

Intensive distribution

Question 17

Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories

Answer 17

Exclusive distribution

Question 18

The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products

Answer 18

Selective distribution

Question 19

Select channel members
Manage and motive channel members
Evaluate channel members

Answer 19

Marketing channel management decisions

Question 20

The tasks involved in planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements as a profit

Answer 20

Marketing logistics (or physical distribution)

Question 21

Managing upstream and downstream value-added flows of material, final goods and related information among suppliers, the company, resellers and final consumers

Answer 21

Supply chain management

Question 22

A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill then efficiently and deliver goods to customers as quickly as possible

Answer 22

Distribution centre

Question 23

Warehousing
Inventory management
Transportation
Logistics information management

Answer 23

Logistics system

Question 24

Combining two or more modes of transport

Answer 24

Intermodal transportation

Question 25

The logistics concept that emphasises teamwork, both inside the company and among all the marketing channel organisations, to maximise the performance of the entire distribution system

Answer 25

Integrated logistics management

Question 26

An independent logistics provided that performs any or all of the functions required to get a client’s product to market

Answer 26

Third-party logistics (3PL) provider