Mkt 201 Ch15

Front 1

A firm that brings in outside companies to accomplish supply chain activities is using ________.

Back 1

outsourcing

Front 2

Which includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

Back 2

the supply chain

Front 3

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers

Back 3

supply chain management

Front 4

When a company uses ________, it brings in an external company to run some of its essential operations

Back 4

insourcing

Front 5

What is the series of firms or individuals that facilitate(s) the movement of a product from the producer to the final customers?

Back 5

the channel of distribution

Front 6

Through the practice of insourcing, a company brings in an external company to run its ________

Back 6

essential operations

Front 7

Producers benefit from using intermediaries because they ________

Back 7

offer greater efficiency in making goods available to target markets

Front 8

At minimum, a channel of distribution consists of a producer and a(n) ________

Back 8

customer

Front 9

What is the term for the firms and individuals who help move a product to the consumer or the business user?

Back 9

channel intermediaries

Front 10

Channels of distribution provide...

Back 10

time, place, and ownership utility

Front 11

Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. This process is called _______

Back 11

breaking bulk

Front 12

Wholesalers and retailers create efficiencies in the flow of goods from producer to end consumer by ________ when they provide a variety of products in one location

Back 12

creating assortments

Front 13

Functions provided by channel intermediaries that make the purchase process easier for customers and manufacturers are referred to as ________ functions

Back 13

facilitating

Front 14

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries

Back 14

facilitating

Front 15

Channel members can help producers by identifying customer complaints, customer preferences, and new competitors in the market. These are all examples of the ________ function of channel intermediaries

Back 15

communication

Front 16

Retailers handle the financial exchange when a customer pays for a product. This is an example of the ________ function of channel intermediaries

Back 16

transaction

Front 17

Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel

Back 17

disintermediation

Front 18

_______ describes a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets

Back 18

knowledge management

Front 19

The theft and unauthorized repurposing of intellectual material via the Internet is called ________

Back 19

online distribution piracy

Front 20

Intermediaries that do business with many different manufacturers and many different customers are most accurately referred to as _______

Back 20

independent intermediaries

Front 21

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to...

Back 21

offer marketing assistance or delivery for the products they sell

Front 22

What group of independent intermediaries can be divided into the two broad types of full-service and limited-service?

Back 22

merchant wholesalers

Front 23

An intermediary who ________ legally owns the goods being handled

Back 23

takes title

Front 24

The owner of a grocery store wants to have non-food items delivered, priced, displayed and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs?

Back 24

rack jobber

Front 25

Truck jobbers are limited-service merchant wholesalers who would most likely handle _____

Back 25

fruits and vegetables

Front 26

Mail-order wholesalers are associated with all of the following EXCEPT ...

Back 26

allowing shipment prior to receiving payment

Front 27

Drop shippers do all of the following EXCEPT

Back 27

take actual possession of the merchandise

Front 28

Rack jobbers are limited-service merchant wholesalers who would most likely handle

Back 28

magazines

Front 29

A(n) ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed

Back 29

broker

Front 30

_______ are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers

Back 30

merchandise brokers

Front 31

Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis

Back 31

agents

Front 32

_______ is true about merchandise brokers

Back 32

Brokers never take title to the merchandise they sell

Front 33

________ is true about manufacturers' agents

Back 33

Manufacturers' agents are compensated with commissions based on a percentage of what they sell

Front 34

A commission merchant would most likely sell

Back 34

agricultural products

Front 35

What is true about sales branches, sales offices, and manufacturers' showrooms?

Back 35

They are all manufacturer-owned intermediaries

Front 36

________ are manufacturer-owned facilities that carry inventory and provide sales and services to customers

Back 36

sales branches

Front 37

What are manufacturer-owned facilities that do notcarry inventory but provide selling functions for the manufacturer in a specific geographic area?

Back 37

sales offices

Front 38

Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores

Back 38

manufacturer's showroom

Front 39

To a producer of goods, a greater number of channel levels means _______

Back 39

less control

Front 40

The producer-retailer-consumer channel is ________

Back 40

the shortest indirect channel

Front 41

In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________

Back 41

industrial distributor

Front 42

What is true about business-to-business channels?

Back 42

Direct channels are more common in business-to-business markets than consumer markets

Front 43

What is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?

Back 43

dual or multiple distribution system

Front 44

_______ is a distribution system that uses different channels and communication methods to reach and serve a target market

Back 44

a hybrid marketing system

Front 45

_______ is most likely to force a manufacturer to pay a slotting allowance

Back 45

a large retail chain

Front 46

What should be the first step in distribution planning?

Back 46

developing distribution objectives

Front 47

Once an organization has developed its distribution objectives, it should next ________

Back 47

evaluate the internal and external environments

Front 48

Conventional distribution channels consist of one or more ________ producers, wholesalers, and retailers

Back 48

independent

Front 49

What is NOT true about conventional marketing systems

Back 49

Members of conventional marketing systems do not work toward the same broad goals

Front 50

A channel consisting of one or more independent producers, wholesalers, or retailers, each seeking to maximize its own profits with little concern for other channel members, is a(n) ________

Back 50

conventional marketing system

Front 51

A corporate VMS has the advantage of controlling the entire distribution chain under _______

Back 51

single ownership

Front 52

What are the three major types of vertical marketing systems?

Back 52

corporate, contractual, and administered

Front 53

Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of a single dominant channel member?

Back 53

an administered vertical marketing system

Front 54

What is true about a vertical marketing system (VMS)?

Back 54

A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel

Front 55

A retailer cooperative is a form of a(n) ________ vertical marketing system (VMS)

Back 55

contractual

Front 56

Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS)

Back 56

contractual

Front 57

In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity

Back 57

horizontal marketing system

Front 58

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution

Back 58

selective

Front 59

Which type of distribution is used when the producer wants to place its products with more than one, but fewer than all, of the intermediaries who are willing to carry its products?

Back 59

selective

Front 60

Which type of distribution means limiting distribution of a product to a single outlet in a particular region?

Back 60

exclusive

Front 61

Selective distribution strategy is most suitable for which consumer product category?

Back 61

shopping products

Front 62

_________ is another name for the channel leader

Back 62

channel captain

Front 63

What is the process of designing, managing, and improving the movement of products through the supply chain?

Back 63

logistics

Front 64

Marketing logistics involves which of the following types of distribution flows?

Back 64

outbound, inbound, and reverse

Front 65

During the stage of ________ activities, the company receives materials it needs to manufacture its products

Back 65

inbound logistics

Front 66

Which stage of activity in logistics involves shipping the product out to customers?

Back 66

outbound logistics

Front 67

Physical distribution activities include all of the following EXCEPT

Back 67

order getting

Front 68

The difference between distribution centers and storage warehouses is that distribution centers are designed to ________

Back 68

perform other functions, such as breaking bulk

Front 69

What type of utility does warehousing provide to consumers by holding onto products until consumers need them?

Back 69

time

Front 70

What do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product?

Back 70

responsiveness

Front 71

The fastest and most expensive mode of transportation is _______

Back 71

air

Front 72

What is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands--no more and no less?

Back 72

inventory control

Front 73

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation

Back 73

just in time (JIT)

Front 74

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel

Back 74

RFID

Front 75

The perfect order measurement calculates ______

Back 75

the error-free rate of each stage of a purchase order

Front 76

A new company called LidRock is prospering because it figured out a novel way to get music, video games, and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks. LidRock is focusing on which one of the four Ps?

Back 76

place

Front 77

What is the best example of a direct channel?

Back 77

Farmer Mintz sells corn to the Hughes household who will eat it for supper

Front 78

A husband and wife have a small store that is located at a beach resort. The only products sold at this store are hand-dipped and sculptured candles made by this couple. Marketers would classify the channel of distribution for these candles as ________

Back 78

direct

Front 79

Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) _______

Back 79

indirect marketing channel

Front 80

Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Proud Pets would be LEAST likely to expect _________ from its new channel member?

Back 80

identifying raw materials and other productive inputs

Front 81

Burt can visit his local hardware store and buy one 4-inch paint brush and not the case of 24 brushes that the retailer had to buy. This is an example of how the channel of distribution facilitates _______

Back 81

breaking bulk

Front 82

Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by _______

Back 82

creating assortments

Front 83

What is NOT a channel intermediary?

Back 83

the supplier of the raw materials used to make glass windows

Front 84

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of _______

Back 84

a wholesaling intermediary

Front 85

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) _______

Back 85

independent intermediary

Front 86

You own an independent store in your neighborhood and like to offer fresh seafood in your meat display case. Which type of wholesaler is likely to best serve you?

Back 86

cash-and-carry wholesaler

Front 87

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a _______

Back 87

drop shipper

Front 88

An independent hardware retail store 100 miles from the nearest city of more than 5,000 people but providing needed supplies for area ranchers would most likely buy its plumbing and electrical supplies through a _______

Back 88

mail order wholesaler

Front 89

What is an example of a dual distribution system?

Back 89

J.C. Penney's catalog and retail store sales

Front 90

Increasingly commonplace today is the appearance of two different franchise chains under the same roof, such as Pizza-Hut and Taco Bell. This is an example of a(n) ________ marketing system

Back 90

horizontal

Front 91

Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution

Back 91

intensive

Front 92

What is most likely intensively distributed?

Back 92

Coca Cola

Front 93

What is most likely exclusively distributed?

Back 93

BMW automobiles

Front 94

Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution

Back 94

exclusive

Front 95

Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?

Back 95

horizontal

Front 96

A brand of variety stores is part of a wholesaler-sponsored voluntary chain. This means these retailers are members of a(n) ________ vertical marketing system (VMS)

Back 96

contractual

Front 97

At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in _______

Back 97

materials handling

Front 98

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should use ________ as its main carrier

Back 98

air

Front 99

Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport to save money

Back 99

water

Front 100

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California, where it was grown, to markets in Nevada?

Back 100

trucks