Exam 10: Marketing Channels: Delivering Customer Value

Moving products and materials from suppliers to the factory is known as ________ logistics.

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n)________ marketing system.

When a seller requires that only certain dealers carry its products, its strategy is known as ________.

In a(n)________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.

What is a contractual vertical marketing system? Give an example of a type of business that works as a contractual VMS.

What is marketing logistics? What are the components of marketing logistics?

Marketing logistics involves getting the right product to the right customer in the right place at the right time profitably.

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________.

Brandy's, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers - The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n)________ marketing system.

Which of the following is true of an intensive distribution strategy?

Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.

Outbound logistics refers to moving ________.

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

A vertical marketing system consists of producers, wholesalers, and retailers acting as a unified system.

________ involves combining two or more systems of transportation to move products.

The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market.

What criteria should a firm consider before choosing a channel alternative?

Direct marketing is the longest distribution channel between a producer and consumer.

A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members.

The goal of any logistics system should be to maximize sales, not profits.