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MKTG 230/Marketing Concepts > Chapter 15 > Flashcards

Chapter 15 Flashcards

Exam 3

1
Q

Which of the following refers specifically to an intermediary that sells to consumers?

Manufacturer
Distributor
Wholesaler
Retailer

A

Retailer

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2
Q

In a consumer market, an intermediary who sells to other intermediaries is called a?

A

Wholesaler

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3
Q

The difference between an agent and a wholesaler is that the latter

A

own the product it sells

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4
Q

Each intermediary in the marketing channel

A

adds value in the terms of the functions it performs

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5
Q

In which way do intermediaries in the marketing channel enhance the value of a product for consumers?

A

Intermediaries provide various forms of utility: time, place, form and possession.

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6
Q

Manufacturers often use intermediaries to distribute their products because intermediaries

A

Create value for buyers

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7
Q

The highest level of distribution density is known as ________ distribution.

A

Intensive

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8
Q

The most limited level of distribution density, one common among luxury brands, is known as _________ distribution.

A

Exclusive

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9
Q

Dell chose _____ when it decided to sells its products through Walmart, Best Buy and Staples in addition to its direct channel.

A

Selective distribution

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10
Q

For a computer gaming company, understanding how and where its target consumers buy games is important and will dictate its

A

Channel choice

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11
Q

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, _______ arises.

A

Channel conflict

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12
Q

Disintermediation is a vertical conflict between the channel partners where one _______ another to buy or sell a product _________.

A

bypasses; directly

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13
Q

What could be used in managing potential channel conflicts?

A

Having a channel captain

Identifying with a particular channel member

Using expertise or economic influence

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14
Q

In general, producers can choose whomever they wish distribute their product so long as the choice does not

A

create an unfair competitive situation.

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15
Q

Using a channel captain, or economic influence can help to manage

A

channel conflict.

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16
Q

In the context of a supply chain, customer _______ is the ability of logistics management to satisfy users in terms of time, dependability, communication and convenience.

A

Service

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17
Q

What type of channel allows ultimate consumers to deal with producers instead of intermediaries for purchases?

A

A direct channel

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18
Q

An indirect channel of distribution is defined as one or more ________ between the manufacturer and the consumer.

A

intermediaries

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19
Q

Opentable.com is a reservation mechanism for restaurants. It uses the internet to allow consumers to reserve tables in many places throughout the United States. It is an example of?

A

Internet marketing channels

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20
Q

What is the correct term for marketing that exploits opportunities with both traditional intermediaries and online?

A

Multichannel marketing

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21
Q

Strategic channel alliances are common in ________, when the creation of marketing channel relationship is expensive and time consuming.

A

global marketing

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22
Q

Which of the following are types of contractual vertical marketing systems?

Forward integration

Retailer-sponsored cooperatives

Wholesaler-sponsored voluntary chains

Franchising

A

Retailer-sponsored cooperatives

Wholesaler-sponsored voluntary chains

Franchising

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23
Q

Five Guys restaurant chain originated in Virginia, and started franchising its concept in many U.S. states. It enters into a formal agreement with each franchise, creating a

A

contactual vertical marketing system.

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24
Q

_______ channels allow consumers to buy products by interacting with advertising media instead of a face-to-face meeting with a salesperson.

A

Direct marketing

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25
Q

Which of the following terms refers to firms using stores, catalogs and the Internet to sell merchandise?

Multichannel marketing
Multimedia marketing
Marketing to the masses
3x marketing

A

Multichannel marketing

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26
Q

GE sells its large appliances directly to home and apartment builders but uses retail stores like Lowe’s to sell to consumers, in a strategy known as?

A

Dual distribution

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27
Q

When one firm’s marketing channel is used to sell another firm’s products it is known as an?

A

Strategic channel alliance

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28
Q

Estee Lauder manufacturers MAC cosmetic products an also owns the MAC retail stores. This is an example of a ________ marketing system.

A

corporate vertical

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29
Q

A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules is called?

A

Franchising

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30
Q

When Starbucks coffee is distributed to local food stores by Kraft Foods, it is an example of a

A

strategic channel alliance.

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31
Q

Ford licenses its dealer to sell cars subject to specific sales and service conditions under its?

A

Franchise agreement

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32
Q

_______ deals with decisions needed to move a product from the source of raw materials to consumption.

A

Logistics

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33
Q

Which of the following should be considered as part of total logistics cost?

Sales promotion costs
Order processing
Marketing research
Materials handling and warehousing

A

Order processing &

Materials handling and warehousing

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34
Q

Many logistics are interrelated; increasing inventory costs with additional warehouses should result in?

A

Reduced transportation costs

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35
Q

Replenishment time refers to

A

the time between ordering an item and when it is available for use or sale.

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36
Q

A current emphasis in supply chain management is to reduce lead time so that?

A

Inventory levels can be minimized

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37
Q

A quick response delivery system increases the efficiency of which of the following processes?

A

Reordering

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38
Q

Which three of the following are the elements of dependability, one of the factors of supply chain customer service?

Complete delivery
Consistent lead time
Safe delivery
Open communication

A

Complete delivery
Consistent lead time
Sale delivery

39
Q

Supply chain customer service depends on ________, which can be improved by implementing practices like sending status reports on orders.

A

communication

40
Q

Supply chain customer service depends on convenience, which can be improved by implementing which of the following practices?

Ensuring products are available at many outlets.

Arranging all necessary details, such as transportation.

Relationship-building with consumers.

Communicating product improvements to supplies.

A

Ensuring products are available at many outlets.

Arranging all necessary details, such as transportation.

41
Q

Target market coverage

A

Distribution density levels

42
Q

Buyer requirements

A

Customer needs for information, convenience, variety and services

43
Q

Profitability

A

Distribution, advertising and selling costs

44
Q

The combination of a firm’s supplier network and its marketing channel is known as?

A

Its supply chain

45
Q

The process of reclaiming recyclable and reusable materials, returns and reworks from the point of consumption or use for repair, remanufacturing, redistribution or disposal is known as?

A

Reverse logistics

46
Q

Logistics management includes which two of these?

A supplier network
Flow of raw materials and parts
Flow of finished products
A marketing channel

A

Flow of raw materials and parts

Flow of finished products

47
Q

In logistics, flow refers to

A

activities to move a products from the source of raw materials to consumption.

48
Q

In logistics, managers attempt to drive down costs but can go no further than the level where the firm

A

can sill deliver expected customer service.

49
Q

The objective of logistics management in a customer-driven supply chain is to _________ while delivering ___________.

A

minimize logistic costs; maximum customer service

50
Q

The supply chain for a product includes

A raw material supplier
A distributor
A retailer
A current or potential customer

A

A raw material supplier
A distributor
A retailer

51
Q

The integration and organization of information and logistics activities across firms to create and deliver products that deliver value to the consumer is known as?

A

Supply chain management

52
Q

Which of the following is an important feature of customer-driven supply chain management, creating benefits in order processing, transportation, scheduling and inventory and facility management?

Environmental scanning
Information technology
Flexible pricing
Political involvement

A

Information technology

53
Q

It is estimated that logistics costs including transportation, distribution center operations and oder processing represent _______ of the rental price that you pay for a new car.

A

25 to 30%

54
Q

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirement is known as?

A

Logistics management

55
Q

The supply chain for a product includes

a current or potential customer.
a raw material supplier.
a retailer.
a distributor.

A

a raw material supplier.; a retailer.; a distributor.

56
Q

_______ are typically designed to be either responsive or efficient, depending upon a firm’s strategy to meet customer requirements.

A

Supply chains

57
Q

Which of the following are steps when aligning your supply chain with marketing strategy?

Understand the customer.
Understand the supply chain.
Understand the competition.
Harmonize the supply chain with the marketing strategy.

A

Understand the customer.; Understand the supply chain,; Harmonize the supply chain with the marketing strategy.

58
Q

Dell’s target market desires rapid delivery and a wide variety of customizable products, so the company has opted for a(n) _______ supply chain.

A

responsive

59
Q

Walmart’s marketing strategy to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods, so the company has opted for a(n) _______ supply chain.

A

efficient

60
Q

Which two of the following are true of merchandise in the cross-docking process?

It is warehoused only for a short period of time, if at all.

It is unloaded from the supplier, sorted for an individual store and reloaded onto trucks quickly.

It requires special handling at the individual store, such as pricing.

It is “floor-ready” and has been shipped directly to each store.

A

It is warehoused only for a short period of time, if at all.

It is unloaded from the supplier, sorted for an individual store and reloaded onto trucks quickly.

61
Q

Which of the following are true about supply chains?

Choice of supply chains minimize all costs.

Managers must often make trade-offs between efficiency and responsiveness of their supply chains.

Speed with the supply chain is the top consideration for organizations.

Choice of a supply chain should reflect customer needs.

A

Managers must often make trade-offs between efficiency and responsiveness of their supply chains.

Choice of a supply chain should reflect customer needs.

62
Q

In addition to Macy’s its own retail outlets in various locations, the retailer also has its own website and catalog. This represents a most toward ______ marketing.

A

Multichannel

63
Q

Which of the following is TRUE about marketing channels?

Indirect channels are longer than direct ones.

Every channel must have a retailer in it.

Every channel must have an agent in it.

More intermediaries are involved in direct channels.

A

Indirect channels are longer than direct ones.

64
Q

An example of a direct channel is?

A

A restaurant

65
Q

Toyota sells its vehicles through retailers known as dealerships, which means it uses a(n) _________ channel of distribution.

A

indirect

66
Q

A(n) _______ might be added to an indirect channel for a low-cost product where the retailer demands smaller quantities.

A

wholesaler

67
Q

The longest of the typical channels is used when there are many small producers and many small retailers, so a(n) ________ is used to coordinate a large supply of the product.

A

agent

68
Q

Which of the following is characteristic of a business channel?

It almost always features an agent.

It usually is a direct channel.

It changes very frequently, with each new contract.

It tends to be shorter than consumer channels.

A

It tends to be shorter than consumer channels.

69
Q

______ channels are employed for business products when buyers are large and well-defined, the sales effort requires extensive negotiations, and the products are of high unit value and require hands-on expertise for installation or use.

A

Direct

70
Q

The marketing channel for business products sometimes features a(n) _______ which in many ways is like a wholesaler in consumer channels.

A

industrial distributor

71
Q

For business products, a(n) _______ might serve as an independent selling arm for producers, representing them to industrial users.

A

agent

72
Q

Electronic intermediaries are incapable of performing elements of the _______ function, particularly for some products, so these tasks remain with traditional intermediaries or the producer.

A

logistical

73
Q

Give an example of how a firm can leverage its multichannel marketing?

A

Allowing customers to pick up online orders, or return or exchange non-store purchases, at a nearby store.

74
Q

Ralph Lauren manufactures clothes and now also owns retail stores selling these clothes. This is an example of?

A

Forward integration

75
Q

An example of backward integration is?

A

A retailer that owns the manufacturing plant making the products it sells.

76
Q

In administered vertical marketing systems, coordination is achieved through one channel member influencing another, often based on?

A

size

77
Q

Which of the following companies is likely to have the most influence relative to other channels member if it operated in an administered vertical marketing system?

Carhartt (clothing)
Procter & Gamble (broad assortment of products)
Burt’s Bee’s (personal care products)
Vizio (consumer electronics)

A

Procter and Gamble (broad assortment of products)

78
Q

What are the three degrees of distribution density considered by manufacturers?

A

Intensive
Exclusive
Selective

79
Q

In choosing a channel, marketing managers should consider what when assessing potential profitability?

A

The extent to which channel share costs of distribution, advertising and selling expenses.

80
Q

When Jenn-Air, a producer of kitchen appliances, decided to terminate its distributors and sell directly to retailers, it is an example of?

A

disintermediation

81
Q

When franchises like car dealerships believe they are located too close to each other, __________ might arise.

A

horizontal channel conflict

82
Q

Which two of the following are legal, but sometimes viewed as anticompetitive and possibly in violation of the Clayton Act?

Channel captains
Dual distribution
Disintermediation
Vertical integration

A

Dual distribution

Vertical integration

83
Q

The Clayton Act specifically prohibits what two practices that might arise in the channel management?

A

Exclusive dealing

Tying arrangements

84
Q

What term refers to the number of stores in a geographic area in which products are placed?

A

Distribution density

85
Q

Wholesalers, distributors and retailers operating between the manufacturer and the consumer can be generically called?

A

dealers

86
Q

Celestial Seasonings produces specialty teas and sells them to food __________, who then resell them to supermarkets.

A

wholesalers

87
Q

A key difference between a wholesaler and a broker is that the latter

A

does not actually purchase the product, but brings together a seller and a buyer.

88
Q

Intermediaries that assist with buying and selling, or assume some of the risk of obsolescence for a product are performing a _________ function.

A

transactional

89
Q

Assorting, storing, sorting and transporting are _______ function of intermediaries.

A

logistical

90
Q

Providing financing, grading products, and providing marketing information and research are __________ functions of intermediaries.

A

facilitating

91
Q

An intermediary between a manufacturer and the user that does a variety of functions can be imprecisely called?

A

a distributor

92
Q

If a manufacturer is trying to determine which channel and intermediaries they prefer to use for selling a product, what factors should they consider?

A

Which will be the most profitable?

Which will provide the best coverage of the target market?

Which will best satisfy the buying requirements of the target market?

93
Q

Choice of a marketing _____ by a producer might involve examining a number of factors, including coverage of the target market, buyer requirements and profitability.

A

channel

94
Q

Both Motorola and Nokia have programs whereby consumers can return used cell phones when they no longer are being used, and the phones may be reused, recycled or disposed of properly. These firms are engaged in?

A

Reverse logistics

MKTG 230/Marketing Concepts (5 decks)

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