Exam 12: Manage Marketing Channels, Logistics, and Supply Chain

Exclusive dealing may be legal if the parties show exclusivity is essential for strategic reasons, such as to maintain product image.

________ is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption.

Consumers engage in limited search for items like midrange fashion apparel, home furnishings, and appliances. These are examples of ________ goods, which are candidates for selection distribution.

________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

A ________ is the highest-potential start-up and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.

NextGen Electronix Inc. is a wholesaler of electronic goods in the city of Erbia. The company sells goods manufactured by CellDer Inc. The wholesaler enjoys monopoly because it is the only intermediary selling those products in the city. This is an example of a(n) ________.

Financing, market research, risk-taking, and other services are considered to be ________ functions.

Core Inc., a dealer of electronic items, enjoys economies of scale due to its large buying and selling operations and controls many aspects of the channel's operations. As a consequence of this, the company enjoys tremendous power in the market. In the context of administered vertical marketing systems, Core Inc. is a(n) ________.

A manufacturer employing a(n) ________ strategy focuses much of its promotional investment on the end-user consumer.

Facilitating functions performed by intermediaries include a variety of activities, including financing and market research.

Although the Internet has reshaped the way businesses and consumers interact, it has not been successful in B2B customer interfaces.

An example of a push strategy is ________.

Explain the difference between merchant and agent intermediaries.

Cutting out intermediaries will always guarantee that consumers will save money.

In an administered vertical marketing system, the sheer size and power of one of the intermediaries places it in a position of control. The lead player in such situations may be referred to as the ________.

Explain the important aspects of a value network.

The performance of transaction and communication functions is a category of intermediary contribution within a channel.

________ is the point of contact in the supply chain with the consumer of the product.

It is possible that a(n) ________ vertical marketing system can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation. An example of this is the relationship between Walmart and Procter & Gamble.

Big Market purchases different fruits from local farmers and then sells them to local restaurants and retailers. If the fruits rot before Big Market sells them, the store takes the loss. As an intermediary, Big Market is performing the function of ________.