Exam 11: Marketing Channels and Supply Chain Management

What type of carrier is the "backbone of the transportation industry"?

A vertical marketing system can achieve its goals only through forward integration, due to the nature of the production process.

What is the form of transportation that has the lowest transport cost per tonne?

A soft drink manufacturer that contracts with local bottlers to produce and distribute products within a certain market area is practising selective distribution.

What are bulky, low-unit-value commodities efficiently transported by?

Companies with adequate financial, management, and marketing resources feel little need for help from marketing intermediaries.

Licensing brand names to foreign manufacturers can cause problems for Canadian companies when those foreign-made products make their way back to Canada and end up competing with the company's own output.This channel conflict is called a grey market.

What are the three forms of intermodal coordination?

One of the goals of any marketing strategy should be to establish efficient logistical systems that, in conjunction with customer service, enhance the customer relationship.

What are reverse channels? Why are they necessary?

What is the sequence of suppliers and activities that contributes to creating and delivering merchandise called?

The complete sequence of suppliers and activities that contribute to the creation and delivery of products is known as the supply chain.

Direct selling plays a significant role in business-to-business, but not consumer products marketing.

What is the term industrial distributor essentially synonymous with?

Common carriers can legally move freight via ground transportation only.

Before loading pallets filled with cartons of laundry detergents and dishwashing liquids onto a truck, the warehouse at Loblaws will shrink-wrap the filled pallet to ensure the boxes do not shift during transport.This action is part of the physical distribution process.

The order process comprises four steps: credit check, record of sale, accounting entries, and order fulfillment.

Management at Granger Industries is evaluating the company's distribution system to determine if cost-cutting measures will impact performance.Ralph, an employee with experience in annual cost-cutting negotiations, suggests the company consider synergies between elements of the distribution system instead of judging each activity on its own merits.What is Ralph trying to avoid with the cuts?

Marketing intermediaries are organizations that operate in the channel of distribution between manufacturer and the customer- be it consumer or business user.

What is a vertical marketing system? Distinguish between forward integration and backward integration.