Chapter 11

Question 1

Value Delivery Network

Answer 1

The network made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entires system in delivering customer value

Question 2

Marking 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 customer

Question 3

Retailing

Answer 3

Business of selling goods or services to consumers for their personal use

Question 4

Wholesaling

Answer 4

All activities involved in selling goods and services to those buying for resale of business use

Question 5

Drop Shippers

Answer 5

An intermediary who takes orders and payment from the customer, then arranges to have the merchandise shipped to the customer directly from the supplier

Question 6

Rack Jobber

Answer 6

A wholesaler who buys merchandise and re-sells it on “racks” inside a retail store, in partnership with the retailer

Question 7

Broker

Answer 7

A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation

Question 8

Agents

Answer 8

A representative, either of a buyer or a seller who performs only a few functions and does not take title to the goods

Question 9

Direct Channel

Answer 9

The producer sells directly to the customer

Question 10

Indirect Marketing Channel

Answer 10

When there is one or more intermediary

Question 11

Channel Conflict

Answer 11

Disagreement among marketing channel members over, goals, roles, and rewards

Question 12

Disintermediation

Answer 12

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

Question 13

Vertical Marketing System

Answer 13

A distribution channel 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 14

Corporate Vertical Marketing System

Answer 14

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

Question 15

Administered VMS

Answer 15

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

Question 16

Contractual VMS

Answer 16

A vertical marketing system in which independent firms at different levels of production work together under contract
- Do this to achieve economies of scale, most common type is franchise

Question 17

Franchise Organizations

Answer 17

Special type of Contractual VMS and is a retailer or service provider that operates under a license using another firms proven, successful business model

Question 18

Horizontal Marketing System

Answer 18

An arrangement in which two or more companies that operate at the same channel level join together to follow a new marketing opportunity

Question 19

Multichannel or Hybrid Distribution Systems

Answer 19

A single firm sets up two or more marketing channels to reach one or more market segments

Question 20

Intensive Distribution

Answer 20

Marketing Strategy in which the product is stocked in as many outlets as possible

Question 21

Selective Distribution

Answer 21

A distribution strategy in which market selects a set of retailers that specialize in their product category

Question 22

Exclusive Distribution

Answer 22

A distribution strategy in which marketer gives the rights to distribute its products to only one retailer, or to only one retailer in a particular geographic territory