Exam 14: Marketing Channels and Supply-Chain Management

What advantages do industrial distributors offer? What are some of the disadvantages of using industrial distributors?

The success or failure of a competitor's marketing channel may encourage or dissuade an organization from considering a similar approach.

Which mode of transportation hauls more freight than any other?

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

Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel.

Agents are used in business channels for standardized products and in situations in which information-gathering and selling functions are important.

Private warehouses are usually leased or purchased when a firm believes its warehouse needs are so stable that it can make a long-term commitment to fixed facilities.

Channel decisions are important to marketers mostly because

Scenario 14.1 Use the following to answer the questions.Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns -Refer to Scenario 14.1. If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would be using ____ distribution.

The supply chain begins with______________ and ends with_________________.​

Exclusive dealing occurs when a supplier stipulates that a channel member must purchase additional products besides the one it wants.

Producers do not engage in horizontal integration.

Possession utility is best described as

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called

Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ____ to its distribution network.

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

During order entry, a customer's credit rating is checked by the credit department.

Why is the choice of warehouse facilities an important strategic consideration?

It is rare for a channel member to manage the physical distribution of goods for all supply chain members involved in exchanges.