Exam 11: Marketing Channels and Supply Chain Management

A producer decides to advertise products on its website at reduced prices, while continuing to distribute products to its current retailer customer base.This decision is likely to result in horizontal channel conflict.

Identify and describe the types of service provided by the three classes of freight carriers.

What is a planned marketing channel system called that is designed to improve distribution efficiency and cost-effectiveness through functional integration?

Product recalls and warranty repairs are examples of reverse channel marketing.

When Murray Metal Products contracted to deliver subway trains to the Interborough Rapid Transit System, it probably utilized a shorter, more direct channel than would a consumer goods manufacturer selling nonperishable food products to a retailer.

Perishables, vending machine products, and highly technical equipment tend to have shorter distribution channels, while low-unit-cost nonperishables tend to be distributed through longer channels.

Suboptimization occurs when elements of the physical distribution system are judged on their individual merits and not on how effectively they integrate together.

Transportation and delivery expenses alone add roughly 10 percent to the cost of a product.

Because of increased fuel costs and motor tax rates, motor carriers receive less revenue per tonne shipped than other carriers.

What is the shipping activity of a 1000-tonne shipment that has moved 1000 kilometres?

A home-furnishings distributor needs to ship products to another warehouse 500 kilometres away.The company vans are needed for local deliveries, so the warehouse must call an outside carrier to ship the products.What type of freight carrier will the company MOST likely call?

What physical distribution element determines how a firm should handle requests for goods?

When it comes to warehouse location, it is almost always more efficient to have fewer but larger warehouses, even if they have to be spaced further apart.

Order processing is an important part of the warehousing element of physical distribution.

Small producers in the industrial market may attempt to market their offerings to large wholesalers by utilizing agents.What are these agents called?

Growth in the air freight industry has skyrocketed in the last few years-specifically in the market sector interested in overnight delivery.

What type of marketing channel conflict can result when identically branded products are carried in competing retail pharmacies, discount houses, department stores, convenience stores, and mail-order houses?

One factor that encourages the use of pipelines is speed, with the average pipeline moving goods at a rate of 34 kilometres per hour.

Which of the following is a characteristic of private carriers?

Lakeview Industries contracts with Marine Motor Distributors to carry its newly patented outboard engine.In exchange for exclusive dealership rights, Marine Motor has agreed to carry the full line of nautical clothing accessories offered by Lakeview.What can this agreement best be described as?