Chapter 14 - Marketing Channels and Supply Chain Management

Question 1

Distribution

Answer 1

• Movement of goods and services from producers to consumers

Question 2

Marketing (Distribution) Channel

Answer 2

• System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user

Question 3

Logistics

Answer 3

• Process of coordinating the flow of information, goods, and services among members of the distribution channel

Question 4

Supply Chain Management

Answer 4

• Complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise

Question 5

Physical Distribution

Answer 5

• Broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer

Question 6

Marketing Intermediary (Middleman)

Answer 6

• Wholesaler or retailer that operates between producers and consumers or business users

Question 7

Wholesaler

Answer 7

• Channel intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or business or B2B customers

Question 8

Direct Channel

Answer 8

• Marketing channel that moves goods directly from a producer to the business purchaser or ultimate user

Question 9

Direct Selling

Answer 9

• Strategy designed to establish direct sales contact between producer and final user

Question 10

Manufacturer’s Representative

Answer 10

• Agents wholesaling intermediary that represents manufacturers of related but noncompeting products and receives a commission on each sale

Question 11

Dual Distribution

Answer 11

• Network that moves products to a firm’s target market through more than one marketing channel

Question 12

Reverse Channels

Answer 12

• Channel designed to return goods to their producers

Question 13

Intensive Distribution

Answer 13

• Distribution of a product through all available channels

Question 14

Selective Distribution

Answer 14

• Distribution of a product through a limited number of channels

Question 15

Exclusive Distribution

Answer 15

• Distribution of a product through a single wholesaler or retailer in a specific geographic region

Question 16

Closed Sales Territories

Answer 16

• Exclusive geographic selling region of a distributor

Question 17

Tying Agreements

Answer 17

• Arrangement that requires a marketing intermediary to carry items other than those they want to sell

Question 18

Channel Captain

Answer 18

• Dominant and controlling member of the marketing channel

Question 19

Gray Goods

Answer 19

• Products manufactured abroad under license from a US firm and then sold in the US market in competition with that firm’s own domestic output

Question 20

Vertical Marketing Systems

Answer 20

• Planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain

Question 21

Forward Integration

Answer 21

• Process through which a firm attempts to control downstream distribution

Question 22

Backward Integration

Answer 22

• Process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials

Question 23

Corporate Marketing System

Answer 23

• VMS in which a single owner operates the entire marketing channel

Question 24

Administered Marketing System

Answer 24

• VMS that achieves channel coordination when a dominant channel member exercises its power

Question 25

Contractual Marketing System

Answer 25

• VMS that coordinates channel activities through formal agreements among participants

Question 26

Retail Cooperative

Answer 26

• Group of retailers that establish a shared wholesaling operation to help them compete with chains

Question 27

Franchise

Answer 27

• Contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser

Question 28

Supply Chain

Answer 28

• Control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers

Question 29

Upstream Managemant

Answer 29

• Controlling part of the supply chain that involves raw materials, inbound logistics, and warehouse and storage facilities

Question 30

Downstream Management

Answer 30

• Controlling part of the supply chain that involves finished product storage, outbound logistics, marketing and sales, and customer service

Question 31

Radio Frequency Identification

Answer 31

• Technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance`

Question 32

Enterprise Resource Planning System

Answer 32

• Software system that consolidates data from among a firm’s various business units

Question 33

Third-party (Contract) Logistics Firms

Answer 33

• Company that specializes in handling logistics activities for other firms

Question 34

Suboptimization

Answer 34

• Condition that results when individual operations achieve their objectives but interfere with progress toward broader organizational goals

Question 35

Common Carriers

Answer 35

• Businesses that provide transportation services as for-hire carriers to the general public

Question 36

Contract Carriers

Answer 36

• For-hire transporters that do not offer their services to the general public

Question 37

Private Carriers

Answer 37

• Transporters that provide service solely for internally generated freight

Question 38

Intermodal Operations

Answer 38

• Combination of transport models, such as rail and highway carriers, air and highway carriers, and water and air carriers, to improve customer service and achieve cost advantages

Question 39

Materials Handling System

Answer 39

Set of activities that move production inputs and other goods within factories, warehouses, and transportation terminals

Question 40

Containerization

Answer 40

• Process of combining several unitized loads into a single, well-protected load for shipment