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Marketing Section 8

Terms in this set (131)

The Ford Motor 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 castings plant. This is an early example of _____________?

Select one:
a. Franchising
b. Forward integration
c. Wholesaler sponsored
d. Backward integration
e. Administered channels
Backward integration
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?

Select one:
a. An intermediary will be successful as long as the channel of distribution is more efficient with them than without them.
b. An intermediary will be successful if it can become the lowest cost provider of a particular good or service.
c. An intermediary will be successful if it can differentiate its product from other companies providing the same good or service.
d. An intermediary needs to combine with either a producer or a retailer in order to be successful in the internet age.
e. An intermediary will be successful if it can provide the best customer service.
An intermediary will be successful as long as the channel of distribution is more efficient with them than without them.
The term ___________ refers to professionally managed and centrally coordinated marketing channels.

Select one:
a. Supply chains
b. Distribution channel
c. Wholesale
d. Vertical marketing systems
e. Reintermediation
Vertical marketing systems
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 ___________?

Select one:
a. Grading.
b. Creating assortment
c. Storing
d. Disintermediating
e. Transporting
Creating assortment
BruceCo 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 a prospective customer. Which of these channels would be the best for BruceCo to adopt?


Select one:
a. Hire a manufacturer's representative to call manufacturing businesses send the orders into BruceCo.

b. Work with a broker to negotiate deals with any customer who wishes to purchase what BruceCo is trying to liquidate.

c. Sell directly to customers through a company website and charge $10 shipping and handling for ground delivery and $20 shipping and handling for rush delivery.

d. Set up a series of regional warehouses to keep inventory nearer to the customer.

e. Work with a distributor who
carries a variety of products and sells to a variety of customers.
Work with a broker to negotiate deals with any customer who wishes to purchase what BruceCo is trying to liquidate.
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?

Select one:
a. Trucks
b. Conveyer belts
c. Shipping containers
d. Packages
e. Forklifts
Shipping containers
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?

Select one:
a. Air
b. Rail
c. Truck
d. Water
e. Pipeline
Rail
The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a benefit of holding inventory?

Select one:
a. To create time utility for customers
b. Serve as a buffer against supply interruptions
c. Serve as a hedge against inflation for price-sensitive goods.
d. Make it possible to save money buy buying in volume.
e. To create possession utility for producers
To create possession utility for producers
Coca Cola's basic strategy is they 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 Coke products available for sale through as many 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 expense of having several different channels of distribution?

Select one:
a. Efficiency.
b. Variety
c. Downstream activities.
d. Responsiveness
e. Upstream activities
Responsiveness
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 ___________?

Select one:
a. Creating assortment
b. Breaking bulk
c. Grading.
d. Transporting
e. Storing
Breaking bulk
In a market with producers and six retailers, the addition of a wholesaling middleman can decrease the number of transactions needed to have an efficient market form 24 to 10. This is an example of?

Select one:
a. Disruptive innovations
b. The economy of transactions
c. The learning curve.
d. Economies of scale
e. Disintermediation
The economy of transactions
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 products and accessories. This is an example of ____________?

Select one:
a. Franchising
b. Administered channels
c. Backward integration
d. Forward integration
e. Wholesaler sponsored
Forward integration
One of the ways intermediaries create value is to?

Select one:
a. Increase the amount of money customers are willing to pay for a good or service.
b. Provide a buffer between consumer and producer so individuals dont feel like they are dealing with a large corporation.
c. These are all ways that intermediaries create value.
d. Specialize in one or more channel functions in order to become better at it than others in the channel.
e. Invest in trucks that are much more expensive than other companies in the channel can afford.
Specialize in one or more channel functions in order to become better at it than others in the channel.
What is the difference between the supply chain and the value chain?
Select one:

a. Supply chain is a term used in marketing textbooks while value chain is a term used in Management textbooks.
b. The supply chain concept is used with tangible products while the value chain concept is used with services.
c. the supply chain refers to activities around the physical product while the value chain deals with information flows associated with distribution.
d. 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
e. The supply chain deals with the cost side of the product while the value chain deals with the revenue side of the product.
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
A storage warehouse creates value by?

Select one:
a. Creating possession utility for producers
b. Providing a place for last minute assembly.
c. A storage warehouse does all of these things.
d. Holding inventory closer to where customers are likely to use it.
e. Act as a transshipment point as products move from manufacturer to retailer.
Holding inventory closer to where customers are likely to use it.
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.

Select one:
a. Profit, revenue
b. Cost, service
c. Service, responsiveness
d. Cost, efficiency
e. Upstream, downstream.
Cost, service
A channel of distribution always includes?

Select one:
a. A retailer
b. All of the above
c. A producer
d. A salesperson
e. A wholesaler
Feedback
A producer
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 this, there is only one Caterpillar dealer in any market. This is an example of __________ distribution?

Select one:
a. Heavy-duty
b. Selective
c. Exhaustive
d. Exclusive
e. Intensive
Exclusive
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, Carlina uses _________ transportation for this part of her business?

Select one:
a. Rail
b. Water
c. Truck
d. Air
e. Pipeline
Air
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?

Select one:
a. Air
b. Rail
c. Truck
d. Water
e. Pipeline
Truck
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 distributor, Road Runner Representatives, 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 beep-beep 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?

Select one:
a. Horizontal conflict
b. Vertical conflict.
c. A price war
d. Suspended animation
e. Vertical integration
Feedback
Vertical conflict.
In discussing the impact of the internet on channels of distribution, we talked about disintermediation and reintermediation. What do we mean by disintermediation?

Select one:
a. That the lack of personal contact with internet-based businesses is a turn-off for many customers.
b. That in the internet age, customers will insist on dealing directly with the manufacturer.
c. That intermediaries need to move their businesses from brick and mortar buildings to virtual businesses online.
d. These are all examples of disintermediation.
e. That intermediaries that specialized in functions performed more efficiently by the internet will disappear.
That intermediaries that specialized in functions performed more efficiently by the internet will disappear.
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?

Select one:
a. Vertical integration
b. Disenfranchisement
c. Horizontal conflict
d. Vertical conflict.
e. A price war
Horizontal conflict
Which of the following is NOT a reason a company might want to have more than one channel of distribution?

Select one:
a. To serve customers in different industries.
b. To provide local service to customers in different areas of the country.
c. Because you sell the same product to two completely different customer groups
d. To avoid becoming dependent on a single middleperson
e. In order to earn back money that otherwise would have been earned by your retail network.
In order to earn back money that otherwise would have been earned by your retail network.
Unlike a storage warehouse, a distribution center is primarily for?
Select one:

a. Climate control
b. Storage
c. Reintermediation
d. Transshipment of products
e. Vertical integration
Transshipment of products
According to your textbook, __________ is the ability to satisfy users in terms of time, dependability , communication, and convenience?

Select one:
a. Customer service
b. Supply chain management
c. Service marketing
d. Reverse logistics
e. Marketing
Customer service
Thomasville furniture decided to reduce the number of dealers carrying its line 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?

Select one:
a. Discriminating
b. Selective
c. Exclusive
d. Intensive
e. Exhaustive
Selective
In discussing the impact of the internet on channels of distribution, we talked about disintermediation and reintermediation. What do we mean by reintermediation?

Select one:
a. That because it is so inexpensive to start an internet company that there will be several online intermediaries replacing each brick and mortar intermediary.

b. That as most of the functions associated with distribution are information-based, businesses are likely to emerge using internet-based solutions to solve distribution problems more efficiently than brick and mortar businesses can.

c. That the convenience of doing business over the internet will bring many former customers back into the marketplace.

d. That customers will no longer to be able to pay for their purchases with cash, but will have to use an internet based payment program.

e. That as most of the distribution functions deal with information, because it is so inexpensive to deal with information on the internet, intermediaries that were only marginally profitable will again be successful.
That as most of the functions associated with distribution are information-based, businesses are likely to emerge using internet-based solutions to solve distribution problems more efficiently than brick and mortar businesses can.
The difference between a manufacturer's selling office and a manufacturer's representative is?

Select one:
a. A manufacturer's selling office employs more people than a manufacturer's representative.

b. A manufacturer's selling office has customers come to the office while a manufacturer's selling representative calls on customers at their place of business

c. A manufacturer's selling office handles more functions than a manufacturer's representative

d. A manufacturer's selling office is owned by the company while a manufacturer's representative is an independent contractor.

e. A manufacturer's selling office takes title to the merchandise while a manufacturer's representative does not.
A manufacturer's selling office is owned by the company while a manufacturer's representative is an independent contractor.
Which of the following is NOT a cost typically associated with logistics?

Select one:
a. Stockout.
b. Advertising
c. Transportation
d. Order processing
e. Inventory
Advertising
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?

Select one:
a. Warehousing
b. Information
c. Payment
d. Intermediation.
e. Permission
Information
The supply chain centers on the producer. Downstream activities consist of?

Select one:
a. Actions that will allow the company to exit from an unattractive market.

b. The flow of raw materials from the supplier to the producer

c. The channel flows that deal with the physical product.

d. Quality control and service monitoring after production begins

e. The flow of finished product from the producer to the end user
The flow of finished product from the producer to the end user
According to your textbook, Walmart uses the innovative practice of cross-docking - unloading products from suppliers, sorting them, and loading them onto trucks for a particular store. The biggest benefit to Walmart is that this practice minimizes its ___________ costs?

Select one:
a. Energy
b. Cross-docking lowers all of these costs.
c. Ordering
d. Inventory
e. Responsiveness
Inventory
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 ___________?

Select one:
a. Creating assortment
b. Breaking wind
c. Storing
d. Transporting
e. Grading.
Storing
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 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?

Select one:
a. Vendor managed system
b. Cost minimizing inventory.
c. Just in time inventory management
d. Economic order quantity inventory management
e. Upstreaming
Just in time inventory management
Which of the following is NOT an example of a third-party provider of logistics?

Select one:
a. A fulfillment company.
b. A parcel delivery company
c. An export/import firm
d. A freight forwarder
e. A design firm
A design firm
According to your instructor, what is one of the issues in creating a channel of distribution NOT normally covered in business courses?

Select one:
a. What is it about your product that would make it attractive for channel partner to work with you?
b. Direct versus indirect channels of distribution
c. The different types of intermediaries
d. Contractual versus administered systems.
e. The need to match the channel to the requirements of your customer
What is it about your product that would make it attractive for channel partner to work with you?
In channels of distribution where there are both large players and small players, a(n) ___________, usually the largest member of the channel will assume responsibility for coordinating activities in the channel?

Select one:
a. Opinion leader.
b. Channel captain
c. Vertical marketing system
d. System administrator
e. Financial planner
Channel captain
Thomas Friedman wrote a book about the impact of new technologies and other trends impacting the way business is conducted in the 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 flow of goods from raw materials to end user.

Select one:
a. Information
b. Intermediation
c. Technology
d. Permission
e. Payment
Information
Which of the following statements best describes the relationship between marketing strategy and supply chain management?
Select one:

a. Good supply chain management will compensate for a poor marketing strategy.
b. Supply chain management is a tool that can help you implement your marketing strategy.
c. You cannot develop a sound marketing strategy until you have your supply chain in place.
d. Supply chain management dictates what your marketing strategy should be.
e. Supply chain management is a separate issue from marketing strategy.
Supply chain management is a tool that can help you implement your marketing strategy.
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?

Select one:
a. Set up a series of regional warehouses to keep inventory nearer to the customer.

b. Work with a broker to negotiate deals with each of the novelty shops who wish to carry BruceCo products.

c. Sell directly to the independent novelty shops through a company website and charge $10 shipping and handling for ground delivery and $20 shipping and handling for rush delivery.

d. Work with a distributor who carries a variety of products sold in novelty shops.

e. Hire a manufaturers representative to call on independent novelty shops and send the orders into the factory.
Work with a distributor who carries a variety of products sold in novelty shops.
Which of the following is NOT an example of an intermediary?

Select one:
a. Broker
b. Agent
c. Consumer
d. Distributor
e. Retailer
Consumer
Carlina operates an oil refinery in 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?

Select one:
a. Water
b. Truck
c. Rail
d. Air
e. Pipeline
Pipeline
Most of the functions that need to happen in order to move a product from producer to consumer deal with?

Select one:
a. Products
b. Transportation
c. Intangibles
d. Money
e. All of the above
Intangibles
The concept of _________ deals with the flow of returns, and recyclable materials from the end user to the producer?

Select one:
a. Flip flopping
b. Dharma
c. Disintermediation
d. Going against the current
e. Reverse logistics
Reverse logistics
An indirect channel of distribution consists of?

Select one:
a. A customer, a retailer, and a producer
b. A producer, a wholesaler, and a retailer.
c. A producer and a customer
d. A retailer and a customer
e. A producer and a retailer
A customer, a retailer, and a producer
Which of the following is an example of a direct channel of distribution?

Select one:
a. These are all direct channels of distribution.
b. My niece Polly who sells hand-made jewelry at tables she rents at craft shows and art fairs.
c. The Avon Corporation which has company-paid salespeople sell cosmetics door to door
d. My brother in law Don who custom builds homes for customers on their property.
e. The Dell Corporation which sells computers to consumers through its company owned website.
These are all direct channels of distribution.
The two major issues in supply chain management are:

Select one:
a. Efficiency and responsiveness.
b. Time and money
c. Storage and transportation.
d. Upstream and downstream
e. Revenue and costs
Efficiency and responsiveness.
Materials handling deals with loading and unloading products and moving them from place to place. One of the biggest issues in material handling is?

Select one:
a. Damage control
b. All of these are issues associated with materials handling
c. Keeping track of where things are
d. Breakage
e. Theft
All of these are issues associated with materials handling
Which of the following is NOT something that could be found to be illegal under United States Law?

Select one:
a. Exclusive dealing
b. Consumer rebates
c. Bribery
d. Tying arrangements
e. Refusal to deal
Consumer rebates
Starbucks recently announced that it intends to open another 20,000 stores world wide including several in the United States. Even though it seems as if there is a Starbuck on every corner in America, the company feels there is a need for more outlets. This is an example of ___________ distribution.

Select one:
a. Caffeinated
b. Exhaustive
c. Exclusive
d. Intensive
e. Selective
Intensive
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.

Select one:
a. Upstreaming
b. Cost minimizing inventory.
c. Economic order quantity inventory management
d. Vendor managed system
e. Just in time inventory management
Vendor managed system
Sometimes, even 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 the others that it can tell the others what to do. This is an example of ___________?

Select one:
a. Backward integration.
b. Franchising
c. Administered system
d. Buying organization
e. Wholesaler cooperative
Administered system
Which of the following is NOT something you would like an intermediary to provide for your customers?

Select one:
a. Alternate products
b. Communication
c. Convenience
d. Variety
e. Research
Alternate products
A channel of distribution always includes?

Select one:
a. All of the above
b. A raw materials supplier
c. A wholesaler
d. A customer
e. An intermediary
A customer
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.
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 _____?
Consumers.
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?
Administered system.
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:
Truck.
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?
Water.
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:
Air.
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.
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?
Selective.
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?
Intermediary.
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?
Exclusive.
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 _____?
Breaking bulk.
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.
Intensive.
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.
Cost, service.
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?
Channel flow.
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.
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 _____?
Utility.
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.
Channel alliance.
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.
Information
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?
Pipeline.
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:
Forward Integration.
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 _____?
Efficiency
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.
Channel conflict.
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 _____?
Storing.
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?
Reverse logistics.
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 _____?
Transporting.
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?
Channel captain.
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 _____?
Grading.
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?
Responsiveness
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?
Vertical conflict.
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?
Rail.
A _____ is a set of interdependent organizations that ease the transfer of ownership from producer to business user or consumer?
Marketing channel/
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?
Information.
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?
Horizontal Conflict.
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.
Shipping containers.
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.
Shipping containers.
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 _____?
Backward intergration.
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?
Lead time.
Most of the functions that need to happen in order to move a product from producer to consumer deal with?
Intangibles.
A ________________ is the individuals and firms involved in the process of making a product or serevice available for use or consumption by consumeres or industrial users?
Marketing Channel
Which of the following is NOT an issue typically addressed through distribution?
Advertising
Which of the following is NOT a cost typically associated with logistics?
Advertising
Which of the following is NOT an example of a third-party provider of logistics?
A design firm
Which of the following is NOT a cost typically associated with logistics?
Product development
The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a cost of holding inventory?
To save on capital expenditures
Which of the following is NOT something you would like an intermediary to provide for your customers?
Alternate products
A direct channel of distribution consists of?
A producer and a customer
Which of the following is NOT something that could be found to be illegal under United States Law?
Consumer rebates
Which of the following is NOT an example of an intermediary?
Consumer
The decision to hold inventory is critical to providing customer service through the supply chain. There are both costs and benefits. Which of these is NOT a benefit of holding inventory?
To create possession utility for producers
Materials handling deals with loading and unloading products and moving them from place to place. One of the biggest issues in material handling is?
All of these are issues associated with materials handling
Which of the statements about the levels of the product concept are true?
All of these statements are true
The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company be seeking input from customers, following up on complaints, listening to employees, analyzing market research and monitoring competitors?
Idea generation
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