Quiz 5

Question 1

A. Supply Chain Management/Marketing Channel Management

Answer 1

• The management of the flow of goods, flow of info, and the management of relationships

Question 2

The Who in SCM

Answer 2

• Raw material suppliers, manufacturers, wholesalers, retailers, distribution centers, transportation companies, and consumers

Question 3

The how in SCM

Answer 3

• Technology is the key. Especially information technology

Question 4

The why in SCM

Answer 4

• To deliver value to the consumers

Question 5

B. Members in a Supply Chain

Answer 5

a. Raw Material & Component Suppliers
b. Manufacturers
c. Wholesalers = buy from manufacturers and sell to retailers
d. Distribution Centers
i. Deliver to stores

e. Fulfillment Centers
i. Deliver to customers

f. Retailers
Sell to end consumers

g. Transportation Companies
Move goods by members

Question 6

What is vertical integration in a SCM

Answer 6

• Companies who do everything yourself

Question 7

C. Marketing Channels

Answer 7

Direct

Indirect

Question 8

Direct marketing channel

Answer 8

Manufacturer –> customer

Question 9

Indirect marketing channel

Answer 9

i. Wholesaler or Retailer?
- Wholesaler – Sells to retailers and customers
- Retailer – sells to customers

Question 10

Why would companies ship directly to a store

Answer 10

i. If the material/goods are perishable
ii. If the merchandise is a fad and the retailer wants it fast
iii. If there are a lot of the retail stores in a concentrated area

Question 11

Why would companies ship to a distribution center

Answer 11

i. Allows the store to carry less inventory
ii. The retail space is much more expensive than a DC space
iii. Much less errors in data gathered from a DC

Question 12

How do suppliers capture information

Answer 12

i. Dependent on having a tracking device on each piece of inventory

Question 13

b. Who does the store share with?

Answer 13

i. The rest of the supply chain

Question 14

c. Who does the buyer share with?

Answer 14

i. Vendors, the suppliers, etc

Question 15

d. What is vendor managed inventory?

Answer 15

i. When the vendors automatically ship out more inventory when the stores inventory gets to a certain level

Question 16

Promotion

Answer 16

Communicates value to the target market

Influences the way that people think, feel, and act

Communicates the value proposition

Question 17

Sub-goals of promotion

Answer 17

Inform, persuade, and remind

Question 18

Inform (promotion)

Answer 18

Introduction stage. Informs about product category benefits

Question 19

Persuade (promotion)

Answer 19

Growth stage. Persuades customers to try/buy the product

Question 20

Remind (promotion)

Answer 20

Maturity stage. Reminds consumers about the product

Question 21

Promotional mix

Answer 21

Set of tools that you use to communicate

Question 22

Public relations

Answer 22

The organizational function that manages the firm’s communications to achieve a variety of objectives, including building a positive image and educating stakeholders

Question 23

Sales promotion

Answer 23

Special incentives or excitement building programs that encourage customers to try, buy, or buy more.

Ex. Contests, sweepstakes, competitions, samples, etc.

Also one of the easiest to measure

Question 24

What is a metric

Answer 24

A measure of performance

Question 25

Personal selling

Answer 25

Two-way flow of communication between a buyer and a seller designed to influence the buyer’s purchase decision

Personal interactions for the point of making a sale

Question 26

Personal selling adv/disadv

Answer 26

Most expensive, most effective, very easy to measure, and adds the most value to the customer

Question 27

Advertising

Answer 27

A paid form of communication delivered through mass-media from an identifiable source.

Interpersonal, one-way communication in which the company is identified and pays for the communication (ad)

Question 28

Advertising adv/disadv

Answer 28

A very high reach (% of the TM that sees it)

Cost/contact is very low –> TC is high

Very difficult to measure because of the lag effect

Question 29

Direct marketing

Answer 29

Marketing that communicates directly with target customers to generate a response or transaction

Includes email and m-commerce

Question 30

Online marketing

Answer 30

Use of websites, blogs, and social media to market

Question 31

Integrated marketing communications (IMC)

Answer 31

The combination of all communication methods to provide a clear, consistent, and impactful message

Question 32

Push vs pull promotion

Answer 32

Push - Manf. talks to a retailer

Pull - Manf. talks to the customer (billboards)

Question 33

AIDA

Answer 33

Awareness, interests, desires, and actions

Question 34

Institutional advertising

Answer 34

Used to promote the organization as a whole and is designed to establish, change, or maintain the organizations image

Question 35

Sub-categories of institutional advertising

Answer 35

Advocacy - supports a cause or issue, sometimes a controversial issue; usually sponsored by for-profit orgs

Public service - Focus on public welfare for the betterment of society; generally sponsored by a non-profit org, religious groups, trade associations, etc.

Question 36

Product advertising

Answer 36

Informs, persuades, and reminds about a specific product/service