Exam 14: Marketing Channels and Supply Chain Management

Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payment industries so it would have more control over the entire process. Alibaba's acquisition is an example of

The supply chain includes

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.

GNC sells vitamins and other products related to health and nutrition through franchises located in malls and shopping centers around the world. If GNC makes an agreement with Target to sell its private-label GNC vitamins in Target retail locations, this would likely lead to

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.

The reorder point can be calculated by multiplying the usage rate by the order lead time and then adding in the number of safety stock.

Identify the various transportation modes and describe in detail two modes of transportation.

If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using

Intensive distribution is appropriate for shopping products.

Assuming everything else is equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

Having products available when customers want them creates

Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is called

Consumers receive the benefits of place utility when

When shopping for products, business customers often prefer to deal with _____, while consumers typically buy from _____.

Under what circumstances is selective distribution a desirable level of market coverage?

Specialty products that require service information and are consumed over a long period of time are likely to be distributed on an exclusive basis.

Vertical channel integration

To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called

Discuss the importance of order processing in the physical distribution system.