Exam 11: Marketing Channels and Supply Chain Management
Highly technical products, pharmaceuticals, and products requiring installation and customization are most likely sold directly from the manufacturer to the customer.
True
Inventory control is part of a company's accounting system but is often inaccurately considered part of the physical distribution system.
False
Discuss the two categories of channel conflict.Give an example of each.
a.
Horizontal conflict develops among channel members at the same level.It occurs most often among different types of intermediaries that handle similar products.An example of a horizontal channel conflict would occur when two industrial distributors servicing separate geographical areas begin to compete head-to-head with the same products when one establishes a website that allows customers to order from anywhere in the country.
b.
Vertical conflict occurs between marketing channel members at different levels.It occurs frequently and is often more severe than horizontal conflict.Vertical conflict can occur between a producer and its intermediaries.If the producer sets up an electronic storefront for its products, it begins to compete directly with its retail customers.This can occur when a wholesaler, which has access to discounted prices, advertises on the Web at lower prices than the retailers it services.
Logistics and customer service have an adversarial relationship in most organizations.
Exclusive distribution allows greater market coverage than other distributions intensities because of the incentive dealers are provided by their market protection.
Which of the following is an example of direct selling to the consumer market?
A product warranty that instructs the owner to return the product to the dealer for repair or service in the event of failure during the warranty period creates a dual distribution channel for that product.
Marketing channels facilitate the exchange process by increasing the number of market contacts necessary for a sale to take place.
Why do marketing channels play a key role in marketing strategy?
Companies maximize customer value created by the supply chain through upstream and downstream management.
Products with wide consumer appeal are candidates for intensive distribution, which utilizes all available distribution channels.
Industrial distributors are brokers between the manufacturer and business user.The distributor will provide technical information and facilitate the order process, but title and possession transfer occur directly between the producer and the customer.
Logistics and supply chain management are used interchangeably because they are essentially the same thing.
Who is primarily responsible for achieving cooperation that resolves conflict among marketing channel members?
What percentage of all consumer goods is transported by the trucking industry?
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