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Logistics refers to a system of proprietary computer and telecommunication technologies to exchge electronic
activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost distribution management.
Logistics is most closely related to which element of the marketing mix?
place
Logistics management refers to
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 requirements
The word flow as it relates to the definition of logistics management refers to
decisions needed to move a product from the source of raw materials to consumption.
An important feature of customer-driven supply chain management is its application of __________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.
sophisticated information technology
In the automobile industry, the supply chain manager is responsible for translating __________ into actual orders and arranging for delivery dates.
customer requirements
There are three steps used in choosing a supply chain: (1) _________, (2) understand the supply chain, and (3) harmonize the supply chain with the marketing strategy.
understand the customer
Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors a(n) __________ designed to deliver products to consumers at the lowest possible cost.
efficient supply chain
The objective of logistics management in a supply chain is to minimize total logistics costs while
deliver the appropriate level of customer service.
Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, and order processing costs are referred to as ________.
total logistics costs
The customer service concept implies firms should
provide an appropriate level of customer service while minimizing total logistics costs
Customer service refers to
the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
In a supply chain setting, replenishment time refers to lead time for an item, which means the lag from ordering an item until it is
received and ready for use or sale.
A(n) __________ exists when producers and ultimate consumers deal one-on-one with each other.
direct channel
In a direct channel, all channel functions are performed by _________.
producers
Indirect channels for consumer goods
include intermediaries that are between the producer and consumer and perform numerous channel functions.
A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when the retailer is large and can buy in large quantities from a producer or when
the cost of inventory makes it too expensive to use a wholesaler.
An intermediary that performs a variety of marketing channel functions involving selling, stocking, and delivering a full product assortment and financing, is referred to as a(n) _________.
industrial distributor
Machinetools.com sells grinders, boring mills, and engine lathes. The web site has listed goods from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale at the web site. Machinetools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this
electronic marketing channel
Which of the following services or products must be provided by traditional marketing channels?
health care
CPW (Cereals Produced Worldwide) is a __________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.
strategic channel alliance
An example of a(n) __________ occurred when general mills used the distribution system of nestlé, to market its Honey Nut Cheerios in France, the United kingdom, Spain, and Portugal.
strategic channel alliance
Mail order selling, catalog sales, and telemarketing, are all examples of.
direct marketing channels.
When you order a sweater from an L L. Bean mail-order catalog, what type of marketing channel are you and the company using?
direct marketing channel
The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online, is referred to as _________.
multichannel marketing
Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment or in carwashes where customers are waiting and can have something amusing to read. This would be an example of which type of distribution?
Dual distribution
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as _________.\
vertical marketing systems
The term vertical marketing systems refers to
professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
A new company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that would give it the most control and the least amount of conflict. Which marketing channel arrangement should this company choose?
a corporate vertical marketing system
Which of the following statements regarding corporate vertical marketing systems is most accurate?
successive stages of production and distribution are under a single ownership.
Forward integration refers to
when a producer owns an intermediary at the next level down in the marketing channel.
When a retailer owns a manufacturing operation, it is referred to as
backward integration.
There are three variations of contractual systems: retailer-sponsored cooperatives, franchise systems, and _________.
wholesaler-sponsored voluntary chains
Retailer-sponsored cooperatives refers to
small independent retailers forming an organization that operates a wholesale facility cooperatively.
There are three variations of contractual systems: wholesaler-sponsored voluntary chains, retailer-sponsored cooperatives, and ________.
franchising
A contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules, is referred to as _________.
franchising
Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob, however, has limited operating capital and yet, still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob?
he should establish a contractual vertical marketing system (franchise).
General motors uses _________, where they licenses dealers in north america to sell their automobiles subject to various sales and service conditions.
manufacturer-sponsored retail franchise system
Golden Valley Microwave Foods uses __________ to get their products to consumers.
dual distribution
There are three degrees of distribution - one of these being intensive distribution. What is the extreme opposite of this degree of density?
exclusive distribution
John Deere manufactures and distributes industrial and farm equipment. These types of equipment are considered to be specialty products. Which type of market coverage does john Deere likely use?
exclusive distribution
For which of the following products would the manufacturer be most likely to use exclusive distribution?
chanel perfume, Steinway pianos, and Baccarat crystal
A level of distribution density whereby a firm tries to place its products in a few retail outlets in a specific geographical area is referred to as _________.
selective
The four major considerations for satisfying buyer requirements when designing distribution channels include: (1) convenience, (2) variety, (3) pre-or post-sale services, and (4) ________.
information
The four major considerations for satisfying buyer requirements when designing distribution channels include: (1) information, (2) convenience, (3) variety, and (4) _________.
pre-or post-sale services
Channels are typically designed to satisfy one or more of four consumer interests. When a membership book club allows its members to use the internet to notify the company whether they want to receive the next month's issue, the book club is appealing to which buyer requirement?
convenience
The third consideration in choosing a channel is profitability, which is determined by the margins earned (revenue minus cost) for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?
the extent to which channel members share costs determines the margins received by each member and by the channel as a whole.
Conflict that occurs between two different levels in a marketing channel is referred to as
vertical conflict
While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a web site where potential customers can find the answers to the questions most asked during the appliance purchase process. While Maytag considered using __________ (allowing customers to purchase at the site), it decided against it and simply provides the name and address of the nearest Maytag dealers
disintermediation
Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears, walmart, and Sam's Clubs. Many switched to competing tire makers. This is an example of _________.
horizontal confflict
Channel captain refers to
a channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members.
A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Influence can take four forms: expertise; identification with a particular channel member; the legitimate right of one channel member to direct the behavior of other members; and
economic influence.
The limited employs a quick response system to order fast-moving fashion items. The limited's point-of-sale scanner records each sale. When stock falls below a minimum level, the system automatically sends an electronic order to the manufacturer, which processes the order immediately. This system has effectively reduced
replenishment time.
Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense Is referred to as
quick response systems.
Efficient consumer response systems refer to
inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense.
Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improvers customer service levels, and reduces logistic expenses is referred to as ______.
efficient consumer response
Saks Fifth Avenue has a point-of-sale scanner system to record each sale. When stock of fashion merchandise, such as a Donna Karan jacket, falls below a minimum level, the system automatically generates a replenishment order. When the Donna Karan vendor receives it, the electronic order is processed within 48 hours. This is an example of a(n)
efficient consumer response delivery system.
Dependability is the consistency of replenishment. This is important to all firms in a supply chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery, and
complete delivery.
Convenience refers to
the concept that there should be a minimum of effort on the part of the buyer in doing business with the seller.
An inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items is referred to as _________.
vendor-managed inventory
Vendor-managed inventory refers to
an inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.
Those activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost are referred to as
logistics
Logistics refers to
activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost distribution management.
Logistics is most closely related to which element of the marketing mix?
place
Logistics management refers to
inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements.
Which of the following statements best describes how a supply chain differs from a marketing channel?
a supply chain includes suppliers; marketing channels do not.
Employing the internet to make products and services available for consumption or use by consumers or business buyers is referred to as _________.
electronic marketing channels
The three major types of corporate vertical marketing systems are corporate, contractual, and _________.
Administered
Tylenol and Advil are only two manufacturers of over-the-counter products for ailments such as colds, headaches, sore throats, arthritis aches, and general pain and fever. Both manufacturers of these products seek distribution of their products through pharmacies such as Walgreens. These companies seek out channels and intermediaries that will satisfy a buyer's desire for
Variety
Which of the following would be a source of vertical conflict?
if a Mcdonald's franchise wanted to purchase its produce through its own vendor.
. While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a web site where potential customers can find the answers to the questions most asked during the appliance purchase process. While Maytag considered using __________ (allowing customers to purchase at the site), it decided against it and simply provides the name and address of the nearest Maytag dealers.
Disintermediation
Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers is referred to as _________.
horizontal conflict
Another name for order cycle time is
Replenishment time
Another name for efficient consumer response is _________.
Quick response
At the end of a recent year, Solectron, a big Milpitas, California, electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron
used a system in which its suppliers determined the product amount and assortment that should be in stock.
A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass-market retailers such as wal-mart. The electronics company has begun production of a small line of high quality, professional studio-model components. How should the small electronics company best distribute its new products?
distribute through agents who sell to specialty electronics stores who will feature the new line
A new company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that would give it the most control and the least amount of conflict. Which marketing channel arrangement should this company choose?
a corporate horizontal marketing system
Candy bars should most likely be sold using which type of target market coverage?
Intensive distribution
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