Exam 14: B Supply Chain Management and Marketing Channels

In vertical integration,control is expanded to two or more successive links of production or distribution.

Producers do not engage in horizontal integration.

The shortest possible distribution channel would be producer to retailer to consumer.

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

Supply chain management combines two or more stages of the marketing channel under one management.

Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.

A producer that sells similar products through different channels under different brand names is engaging in dual distribution.

The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities.

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

Selective distribution is desirable when customer service from a channel member is important.

Middlemen can reduce the cost of exchanges.

Marketing channels create several types of utility including time,place,possession,and sometimes form utility.

Cost,speed,load flexibility,dependability,frequency,and accessibility are considered when choosing a transportation mode.

Order processing can be manual or electronic.

Buyers' behavior is unimportant to channel members.

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Dual distribution involves the use of two or more marketing channels for distributing the same products to the same target market.

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

The cost of a business product may affect the distribution channel selected for it.

Freight forwarders are companies that offer several shipment methods,including rail,truck,and air service.