Chapter 10

Question 1

Value-delivery network

Answer 1

A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value.

Question 2

Marketing Channel

Answer 2

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

Question 3

Channel Level

Answer 3

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

Question 4

Direct Marketing Channel

Answer 4

A marketing channel that has no intermediary levels.

Question 5

Indirect Marketing Channel

Answer 5

A marketing channel containing one or more intermediary levels.

Question 6

Channel Conflict

Answer 6

Disagreements among marketing channel members on goals, roles, and rewards who should do what and for what rewards.

Question 7

Horizontal Conflict

Answer 7

Happens at the same level of the channel

Question 8

Vertical Conflict

Answer 8

Conflict between different levels of the same channel

Question 9

Vertical Marketing System

Answer 9

A 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.

Question 10

Conventional Distribution Channel

Answer 10

A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

Question 11

Corporate VMS

Answer 11

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

Question 12

Contractual VMS

Answer 12

A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts.

Question 13

Franchise Organization

Answer 13

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

Question 14

Administered VMS

Answer 14

A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.

Question 15

Horizontal Marketing System

Answer 15

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

Question 16

Multichannel Distribution System:

Answer 16

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

Question 17

Disintermediation

Answer 17

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

Question 18

Intensive Distribution

Answer 18

Stocking the product in as many outlets as possible.

Question 19

Exclusive Distribution

Answer 19

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

Question 20

Selective Distribution

Answer 20

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

Question 21

Marketing Channel Management

Answer 21

Selecting, managing, and motivating individual channel members and evaluating their performance over time.

Question 22

Marketing logistics

Answer 22

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 at a profit.

Question 23

Supply Chain Management

Answer 23

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

Question 24

Multimodal transportation

Answer 24

Combining two or more modes of transportation.