Bruce sells medical devices used in surgical operations. It requires a great deal of training to be able to use these medical devices properly and there is a potential liability to BruceCo if they are used improperly. Because each product has to be numbered and monitored for quality and sanitation, the products must be handled carefully and are expensive. Which of these channels would be best for BruceCo?
Hire a skilled sales force to call on surgeons and educate them about the risks and benefits of your devices.
The goal of a marketing channel is to
Create the most efficient way to move products from producer to consumer.
A channel of distribution always includes?
Unlike a storage warehouse, a distribution center is primarily for?
Transshipment of products.
The supply chain centers on the producer. Upstream activities consist of?
The flow of raw materials from the supplier to the producer.
The term _____ refers to professionally managed and centrally coordinated marketing channels. Choose one answer.
Vertical marketing systems.
Increasingly, channel partners are working together to coordinate their efforts in order to increase the efficiency of supply chains and distribution networks. One supply network strategy is for a retailer to share sales information with suppliers so that the suppliers can take responsibility for replenishing the stores; inventory without the necessity of placing an order for every shipment. This is called?
Vendor managed system.
According to your instructor, the balance of power in channels of distribution has shifted and continues to shift. In the past, manufacturers had the most power in a channel of distribution. In the future, it is likely that the balance of power will continue to shift toward _____?
Sometimes companies will agree to a partnership where one company sells its product through another company's distribution network. One of the advantages of this approach is?
It allows the first company to reach customers it might not otherwise have reached.
Sometimes, even when there is no formal agreement, a channel of distribution operates as a centrally controlled system. Usually this is when one member of the channel is so powerful relative to others that is can tell the other what to do. This is an example of?
In a market with producers and six retailers, the additional of a wholesaling middleman can decrease the number of transactions needed to have an efficient market from 24 to 10. This is an example of?
The economy of transactions.
Carlina operates an automobile parts manufacturing plant in Chillicothe, Ohio. She has automotive customers in Michigan, Ohio, Tennessee, Georgia, and Indiana. Because most of her customers insist on Just In Time inventory management, she needs to know exactly when the shipments of her product to the customer will arrive. Carlina uses _____ transportation for this part of her business:
Carlina operates a tofu-making factory in Taiwan. She uses soybeans grown in Northwest Ohio for her tofu because they are very high quality and the prices are low. Soybeans will keep for a very long time without spoiling. Because her main concern is how to get the thousands of bushels of soybeans to her factory for the least cost, Carlina uses _____ transportation for this part of her business?
Carlina operates a wholesale flower-market serving florists in her city. She orders her roses from Ecuador because the quality is good and the prices are very competitive. Because the roses become unsalable after a day or two, Carolina uses _____ transportation for this part of her business:
BruceCo makes novelty products such as whoopee cushions and plastic vomit. The company sells about $2 million dollars worth of product. The major customers for BruceCo products are small, independent novelty shops that will typically order less than $200 worth of product at a time. Which of these distribution channels would be the best for BruceCo to adopt?
Work with a distributer who carries a variety of products sold in novelty shops.
A channel of distribution always includes?
Thomasville furniture decided to reduce the number of dealers carrying its line of fine furniture. Stores who wished to carry Thomasville were required to dedicate at least 10,000 square feet in their store for a Thomasville gallery. This meant that only the larger dealers in a given market would be able to carry Thomasville. This is an example of _____ distribution?
The two major issues in supply chain management are:
Efficiency and responsiveness.
A(n) _____ is an individual or firm that serves as a go-between when moving products from producer to consumer?
Caterpillar makes heavy equipment for the construction industry. These machines are used hard and need fast reliable service to keep them running once a customer has purchased one. Because of thus, there is only one Caterpillar dealer in any market. This is an example of _____ distribution?
Kendra runs a wholesale distribution center for candy. Each week she receives a truckload of candy from her supplier and unpacks it so that her customers only have to buy a case at a time. Kendra is adding value by _____?
Starbucks recently announced that is intends to open another 20,000 stores worldwide including several in the United States. Even though it seems as if there is a Starbucks on every corner in America, the company feels there is a need for more outlets. This is an example of _____ distribution.
In dealing with logistics, there is a fundamental tradeoff between _____ and _____. The goal is to keep one high and the other low, but they tend to increase together.
An indirect channel of distribution consist of:
A customer, a retailer, and a producer.
The _____ concept recognizes that there are a set of functions that need to happen in order to move a product from the producer to the consumer?
What is the difference between the supply chain and the value chain?
Very little. The value chain concept simply recognizes that in an efficient network, each member of the supply chain adds value to the product as it moves from raw material to the end user.
The biggest difference between a merchant wholesaler and an agent or broker is that the wholesale?
Takes ownership of the products it carries.
In discussing the impact of the internet on channels of distribution, we talked about disintermediation and reintermediation. What do we mean by disintermediation?
That intermediaries that specialized in functions performed more efficiently by the internet will disappear.
A storage warehouse creates value by?
Holding inventory closer to where customers are likely to use it.
Icreasingly channel partners are working together to coordinate their efforts in order to increase the effiiency of supply chains and distribution networks. One supply network strategy is for the producer to share ordering and production information with suppliers and transportation intermediaries in order to minimize inventory by scheduling raw materials and components to arrive at the time the producer is ready to use them to manufacture products. This strategy is called?
Just in Time.
One of the ways intermediaries create value is to?
Decrease the number of transactions needed to create an efficient market.
A channel of distribution helps to create form, place, time, and possession _____?
In discussing the impact of the internet on channels of distribution, we talked about disintermediation and reintermediation. What do we mean by reintermediation?
That as most of the functions associated with distribution and information-based, businesses are likely to emerge using internet-based solutions to solved distribution problems more efficiently than brick and mortar businesses can.
A _____ is a strategic partnership where one company agrees to sell its products through another company's distribution network.
Which of the following statements best describes the relationship between marketing strategy and supply chain management?
Supply chain management is a tool that can help you implement your marketing strategy.
Thomas Friedman wrote a book about the impact of new technologies and other trends impacting the way business is conducted int he world called The World Is Flat. One of the basic premises is that widespread adoption of internet protocols and the seamless connection of computer systems along the supply chain allowing for the efficient flow of _____ to help smooth the flower of goods form raw materials to end user.
Carolina operates an oil refinery is Houston, Texas. She gets her crude oil from the largest oilfield in Texas. Because the product is more or less fluid and because she knows exactly where the raw material is coming from and where it has to go, Carlina uses _____ transportation for this part of her business?
In order to make sure that potential customers had an opportunity to try their new products under the most favorable conditions, the Apple Computer company began opening a number of retail stores that carry the full line of Apple product and accessories. This is an example of:
The difference between a manufacturers selling office and a manufacturers representative is?
A manufacturer's sells office is owned by the company while a manufacturers representative is an independent contractor.
Wal-Mart's basic strategy is to provide products to customers at rock-bottom prices. This their slogan "Always Low Prices". In order to achieve this strategy, Wal-Mart's supply chain is designed to maximize _____?
A supply chain consists of both a _____ and a _____?
Supplier network and marketing channel.
_____ occurs when there is a clash of goals and methods between distribution channel members.
Kendra runs a wholesale distribution center for candy. Each month she receives a shipment of candy from her supplier. She always has enough inventory on hand so that her retail customers can buy cases of candy whenever they need it.Kendra is adding value by _____?
A direct channel of distribution consist of?
A producer and a customer.
Which of the following is a disadvantage of having more than one channel of distribution?
It could create conflict between the two channels.
The concept of _____ deals with the flow of returns, recyclable materials from the end user to the producer?
Sometimes companies will agree to a partnership where one company sells its product through another distribution network. One of the advantages of this approach is?
An intermediary will be successful as long as the channel of distribution is more efficient with them than without them.
Kendra runs a wholesale distribution center for candy. Each week she receives candy from all the major manufacturers at her warehouse. She then puts cases of each brand of candy in her delivery trucks so that her drivers can visit her retail customers and resupply their candy racks. Kendra is adding value by _____?
The supply chain centers on the producers. Downstream activities consist of?
The flow of finished product from the producer to the end user.
In channel of distribution where there are both large players and small players, a _____ usually the largest member of the channel, will assume responsibility for coordinating activities in the channel?
Kendra runs a wholesale distribution center for candy. Each week she receives candy from all the major manufacturers. She stamps a date sticker on each package so the retailers will know how fresh the candy is. She also provides information on how much coca is in the chocolate from various manufacturers. Kendra is adding value by _____?
Coca cola's basic strategy is that you should never be more than an arms length away from a cold, refreshing Coke. In order to achieve this strategy they try to make Cola products available for sale through as much outlets as possible. You can buy bottled Coke in the grocery store, fountain coke at a restaurant, single cans and bottles at convenience stores and gas stations, and individual cans from vending machines while you are waiting in line for a ride at an amusement park. Because the goal of the supply chain is to maximize _____, Coke is willing to bear the expensive of having several different channels of distribution?
Kendra runs a wholesale distribution center for candy. Each week she receives candy from all of the major manufacturers and repackages it so that a retailer can buy a case of candy bars and have some from every manufacturer in the case. Kendra is adding value by _____?
Bruce is an inventory liquidator. The company identifies other businesses that have huge amounts of unsold inventory and buys it from them at pennies on the dollar. They then try to find another company that can use the inventory and sell it to them at a profit. What makes this business so fun is that you never know from day to day what product you will be dealing in or who might be prospective customer. Which of these channels would be the best for BruceCo to adopt?
Work with a broker to negotiate deals with any customer who wishes to pruchase what BruceCo is trying to liquidate.
I can't believe it, said Wiley Coyote. I am the president of Acme enterprises and we make $200,000 a year profit with me working my tail off. Our distributer, Road Runner Representative, made over $800,000 in commissions. I don't understand why they are making all of that money when all they do is run around all day and say deep-deep to customers. I think we should lower the commission rate to bring their income down to a more reasonable level;. This is an example of?
Carlina operates a wholesale lumber business serving contractors in her Midwestern city. She takes orders from a central location and delivers the lumber and other building materials to the contractor's jobsite using her own trucks. She orders her lumber from a mill in Washington State. Because the lumber is bulky and she orders large quantities, she uses _____ transportation for this part of her business?
A _____ is a set of interdependent organizations that ease the transfer of ownership from producer to business user or consumer?
When I order a book from Amazon.com, an online bookseller, I receive an order confirmation that tells me when my package will leave the Amazon warehouse, the name of the shipper, and a link to the shipper's website that allows me to track the progress of my package from the warehouse to my home. This way I know exactly when to expect my package. This is an example of the use of _____ to smooth the flow of goods and services through the channel of distribution?
Tami owned the Subway franchise in Centennial Village at San Francisco State University. She heard that another franchisee had been granted permission to open a Subway in the student union. She immediately complained to whoever would listen to her that the new store would take away most of her business. This is an example of?
According to your instructor, which of these tools used in material handling is a recent (last 50 years) innovation that has revolutionized the shipping industry.
One of the advantages of _____ is that they can be moved from one platform to another without having been loaded or unloaded. Names such as piggyback, fishyback, relate to the variety of transportation options.
The Ford Motors Company broke new ground when it built the Rouge River plant. In addition to an assembly line, the plant included a steel refinery, and a casting plant. This is an early example of _____?
One approach to minimizing inventory balances the cost of ordering a product, the cost of holding inventory, the cost of being out of inventory, and the amount of labor it takes to receive the raw materials after the order has been placed. This mathematical approach is called?
Economic order quantity.
According to your instructor, how does the basic communication model illustrate how important writing skills are to business today?
Most commercial messages go through a written phase regardless of their eventual channel of transmission.
One of the issues in customer service is _____ which recognizes that customer orders cannot always be filled immediately?
Most of the functions that need to happen in order to move a product from producer to consumer deal with?
According to your instructor, the internet has had a massive disruptive effect on channels of distribution in this country. What is the secret of success for intermediaries in the internet age?
An intermediary will be successful as long as the channel of distribution is more efficient with them than without them.