Exam 14: Marketing Channels and Supply Chain Management

Scenario 14.2 Use the following to answer the questions. Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. Refer to Scenario 14.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____.

Scenario 14.2 Use the following to answer the questions. Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. Refer to Scenario 14.2. When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers, he was suggesting a method called ____, where Star would be the ____.

BDP International specializes in planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet their clients' needs and wants. It also specializes in delivering transportation services for their clients. Due to BDP International's efficiency in these areas, many firms outsource their core physical distribution activities to BDP. BDP is most likely to be a(n)

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except

Supply-chain management includes only producers, wholesalers, retailers, and customers.

Describe the three forms of vertical marketing systems.

When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

In vertical integration, control is expanded to two or more successive links of production or distribution.

When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ____ exists.

Cassie and Julian both are buying new iPhones this week. Cassie goes to the Apple store because she wants to actually see the phone before she makes a final decision. Julian knows that he does not need to see the phone, because he just wants to update from his older version. He simply orders it online. Cassie is purchasing her phone through_____, while Julian is purchasing his through ___.

Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Goodyear dealers.

Small firms are more likely to be in a position to have more distribution centers that may reduce delivery times to customers.

On-time deliveries may give a firm a competitive edge.

In an administered VMS, informal coordination brings about a high level of inter-organizational management. Nonetheless,

Kristy orders a dress from JCPenney, straight from its catalog. Nancy goes to JCPenney to purchase the same dress. Kristy is using a _____________ marketing channel, and Nancy is using a ____________ marketing channel.

Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called

Which of the following is an advantage of using an industrial distributor?

In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ____ vertical marketing system.

Public warehouses do not furnish security for products being used as collateral for loans.

Buyers' behavior is unimportant to channel members.