Exam 12: Marketing Channels: Delivering Customer Value

Refer to the scenario below to answer the following questions. Miller Meat Company contracts with several Midwestern farmers to raise beef and pork for its meat processing center.To guarantee freshness,Miller Meat Company relies on a vast distribution network.For delivery to local grocers in Indiana,Miller Meat uses its own fleet of refrigerated trucks;delivery to these Indiana grocers constitutes 65 percent of Miller Meat's business.For deliveries in Illinois,Wisconsin,and points directly west of the Mississippi River,Miller Meat Company contracts with a refrigerated fleet that specializes in expediting smaller shipments.For faster delivery during peak times,Miller Meat Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Indiana.During the holiday season,however,several specialty distributors contract with Miller Meat Company to package specialty meats in gift boxes,then ship them directly to the recipients.For these specialty shipments within Indiana,Illinois,and Wisconsin,Miller uses its normal delivery mode.For all other specialty shipments,Miller ships from its distribution warehouse via air,then contracts with expedited carriers in various cities to deliver to the recipients. -In using air transportation and then expedited truck carriers to deliver specialty items to customers outside of a designated delivery range,Miller Meats is using _ _.

Why are more and more companies turning to third- party logistics providers (3PLs)?

When Netflix began delivering DVDs directly to customers through the mail instead of using a brick- and- mortar system,Netflix was following the trend of .

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

What types of products are intensively distributed?

Through the use of ,or "smart tag" technology,a company is able to locate a product's exact position within the supply chain.

Always Fresh Produce Company has a route selling to more than 100 groceries,schools,and restaurants at wholesale prices.Last week,the owners opened up a walk- in discounted consumer produce outlet.Always is now using a multichannel distribution system.

When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising programs,it is conducting a(n)_ .

In a conventional distribution channel,no channel member has much control over the other members,and no formal means exists for assigning roles and resolving channel conflict.

Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation.

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

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 consider using as its main carrier.

conflict,which occurs between different levels of the same channel,is more common than conflict,which occurs among firms at the same level of the channel.

Exclusive dealing is legal as long as it does not or tend to create a monopoly and as long as both parties enter into the agreement .

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.

The term supply chain may be too limited because it takes a make- and- sell view of the business.

Distribution systems are relatively consistent from country to country,making it easy for international marketers to design channels.

Imaginative distribution systems can be used to gain a competitive advantage.

Which of the following are the three major types of vertical marketing systems?

A producer of a strong brand that agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line is using .