Exam 14: B Supply Chain Management and Marketing Channels

Only producers can be channel captains.

Sometimes a marketing channel is quite simple and short,perhaps running directly from a producer to the final user or consumer.

Marketers of complex and expensive products such as automobiles will likely employ long channels with many knowledgeable intermediaries.

Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.

Specialty products that require service information and are consumed over a long period of time are likely to be distributed on an exclusive basis.

Intensive distribution is appropriate for shopping products.

The end result of eliminating intermediaries is a cost benefit.

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

Both a manufacturers' agent and an industrial distributor may be used when the organizational marketer wishes to cover a larger geographic area but does not maintain a sales force.

Franchising is typical of the administered vertical marketing system.

Full-line forcing requires that channel members purchase the supplier's entire line to obtain any of the products.

A marketing channel is not the same thing as a distribution channel.

Because costs for small shipments (under 500 pounds)are sharply higher than costs for full loads in railroad cars and trucks,firms share costs and services by consolidating shipments.

The main objectives of physical distribution are decreasing costs while increasing customer service.

The services or responsibilities provided by some intermediaries can be eliminated effectively without causing an increase in the services or responsibilities provided by other middlemen.

Retailers are frequently found in business product channels.

Transportation is the least expensive physical distribution function.

Warehousing involves designing and operating facilities to store and move goods.

Intermediaries are marketing institutions,such as retailers and wholesalers,which perform marketing functions necessary to direct products to customers.

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