Chapter 12

Question 1

Value delivery network

Answer 1

This is composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system.

Question 2

Marketing channel

Answer 2

(distribution channel) is 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

This is 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

This system requires nine different contacts. is a marketing channel that has no intermediary levels.

Question 5

Indirect marketing channel

Answer 5

This is a marketing channel containing one or more intermediary levels. In this way, intermediaries reduce the amount of work.

Question 6

How do Channel Members Add Value?

Answer 6

Promotion
Contact
Matching
Negotiation
Physical distribution 
Financing
Risk-taking

Question 7

Marketing channels

Answer 7

This consist of firms that have partnered for their common good with each member playing a specialized role.

Question 8

Channel conflict

Answer 8

This refers to disagreement among channel members over goals, roles, and rewards.

Horizontal conflict
Vertical conflict

Question 9

Conventional distribution channel

Answer 9

This consist of one or more independent producers, wholesalers, and retailers, each separate business seeking to maximize its own profits

Question 10

Vertical marketing systems (VMSs)

Answer 10

This provides channel leadership and consist of producers, wholesalers, and retailers acting as a unified system.

Three major types:
Corporate marketing systems
Contractual marketing systems
Administered marketing systems

Question 11

Corporate vertical marketing systems

Answer 11

This combines successive stages of production and distribution under single ownership.

Question 12

Contractual vertical marketing systems

Answer 12

This consist of independent firms at different levels of production and distribution who join together through contracts.

Question 13

Franchise organization

Answer 13

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

Question 14

Administered vertical marketing system

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

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

Question 16

Multichannel distribution systems

Answer 16

These are systems in which a single firm sets up two or more marketing channels to reach one or more customer segments.

Question 17

Disintermediation

Answer 17

This is the cutting out of marketing channel intermediaries by producers or the displacement of traditional resellers by new intermediaries. (Spotify offers users direct access to there music library)

Question 18

Marketing channel design

Answer 18

Designing effective marketing channels by analyzing customer needs, setting channel objective, identifying major channel alternatives, and evaluating those alternatives.

Question 19

Intensive distribution

Answer 19

A strategy in which they stock their products in as many outlets as possible.

Question 20

Exclusive distribution

Answer 20

in which the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.

Question 21

Selective distribution

Answer 21

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

Question 22

Marketing channel management

Answer 22

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

Question 23

Exclusive dealing

Answer 23

This is when the seller requires that the exclusive distribution sellers not handle competitor’s products.

Question 24

Exclusive territorial agreements

Answer 24

These are where producer or seller limit territory.

Question 25

Tying agreements

Answer 25

These are agreements where the dealer must take most or all of the line.

Question 26

Marketing logistics

Answer 26

(physical distribution) involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption.

Question 27

Supply chain management

Answer 27

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

Question 28

Goal of marketing logistics

Answer 28

This should be to provide a targeted level of customer service at the least cost.

Question 29

Distribution center

Answer 29

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

Question 30

Multimodal transportation

Answer 30

Combining two or more modes of transportation.

Question 31

Integrated logistics management

Answer 31

This is the recognition that providing customer service and trimming distribution costs requires teamwork internally and externally.

Question 32

Third-party logistics (3PL) provider

Answer 32

An independent logistics provider that performs any or all of the functions required to get the client’s products to the market.