Do My Essay!

Do not waste time. Get a complete paper today.

Our leading custom writing service provides custom written papers in 80+ disciplines. Order essays, research papers, term papers, book reviews, assignments, dissertation, thesis or extensive dissertations & our expert ENL writers will easily prepare a paper according to your requirements.

You’ll get your high quality plagiarism-free paper according to your deadline! No Bullshit!!

Special offer! Get 20% discount on your first order. Promo code: SAVE20

CHAPTER 11

MARKETING CHANNELS AND SUPPLY CHAIN MANAGEMENT

MULTIPLE CHOICE QUESTIONS

Gudwriter Essay Writing

1. Caterpillar (famous for earth moving equipment) has a powerful partnership with

its dealers. Which of the following is one of the basic principles upon which this

successful partnership is built?

a. the Internet

b. advertising

c. dealer profitability

d. global networks

2. Most producers use ___________________ to bring their products to market.

a. detailers

b. intermediaries

c. expediters

d. agents

3. A set of interdependent organizations involved in the process of making a product or

service available for use or consumption by the consumer or business user is called a:

a. retailer.

b. wholesaler.

c. distribution channel.

d. logistics function.

4. A ______________ is a set of interdependent organizations involved in the process of

making a product or service available for use of consumption by the consumer or

business user.

a. retailer

b. wholesaler

c. distribution channel

d. middleman

5. Through their contacts, experience, specialization, and scale of operation,

______________ usually offer the firm more than it can achieve on its own.

a. manufacturers

b. producers

c. direct marketers

d. intermediaries

6. From the economic system’s point of view, the role of marketing intermediaries is to

transform:

a. raw products into finished products.

b. consumer needs into producer needs.

c. consumer needs and wants into product desires.

d. assortments of products made by producers into the assortments wanted by

consumers.

7. Which of the following problems do intermediaries attempt to solve within the

distribution channel?

a. the need for a legal buffer between producer and consumer

b. the need to ensure a profit for the producer

c. the need to resolve the producer’s desire to make narrow assortments in large

quantities against the consumer’s need for broad assortments in small quantities

d. the need for a manufacturer to be able to sell goods without having a final

responsibility for their usefulness

8. A distribution channel moves goods and services from producers to consumers. It

overcomes the major time, place, and ______________ gaps that separate goods and

services from those who would use them.

a. possession

b. profit

c. image

d. psychological

9. Members of the marketing channel perform many key functions. Which of the

following would be among those key functions?

a. negotiation

b. sensing

c. producing

d. creating

10. Shaping and fitting the offer to the buyer’s needs, including activities such as

manufacturing, grading, assembling, and packaging, describes which of the following

key functions performed by members of the marketing channel?

a. information

b. promotion

c. contact

d. matching

11. Gathering and distributing marketing research and intelligence about the marketing

environment is part of which of the following marketing channel functions?

a. information

b. promotion

c. contact

d. matching

12. Reaching an agreement on price and other terms of the offer so that ownership

or possession can be transferred is associated with which of the following key

functions performed by the marketing channel?

a. information

b. negotiation

c. contact

d. matching

13. Transporting and storing goods is part of which of the following marketing channel

functions?

a. negotiation

b. physical distribution

c. contact

d. matching

14. _______________ is a layer of intermediaries that performs some work in bringing

the product and its ownership closer to the buyer.

a. A direct marketing channel

b. An indirect marketing channel

c. A channel level

d. A channel switching system

15. With respect to a channel of distribution, the number of intermediary levels within

the channel indicates the ____________ of a channel.

a. width

b. depth

c. length

d. similarity

16. A(n) ________________ is a marketing channel that has no intermediary levels.

a. direct marketing channel

b. indirect marketing channel

c. forward channel

d. hybrid channel

17. If a company sells its product directly to the consumer without using any

intermediaries, it is using a(n):

a. direct marketing channel.

b. indirect marketing channel.

c. forward channel.

d. hybrid channel.

18. Avon, Amway, and Tupperware use which of the following forms of channel

distribution?

a. direct marketing channel

b. indirect marketing channel

c. forward channel

d. fashion channel

19. A(n) _________________ is a channel that contains one or more intermediary levels.

a. direct marketing channel

b. indirect marketing channel

c. forward channel

d. synthetic channel

20. Makers of televisions, cameras, tires, furniture, and major appliances normally use

which of the following distribution channel forms?

a. direct marketing channel

b. indirect marketing channel

c. horizontal channel

d. synthetic channel

21. Using manufacturer’s representatives or sales branches is usually a characteristic of

which of the following channel forms?

a. business marketing channels

b. customer marketing channels

c. service marketing channels

d. direct marketing channels

22. All institutions in a marketing channel are normally connected by several types of

flows. Which of the following is NOT one of those flows?

a. physical flow

b. promotion flow

c. flow of ownership

d. regulatory flow

23. Disagreement over the goals and roles of marketing channel members is called:

a. channel challenge.

b. channel co-dependence.

c. channel frustration.

d. channel conflict.

24. When channel conflict occurs, it can occur at the same level of the channel. This

form of conflict is called:

a. parallel conflict.

b. system conflict.

c. horizontal conflict.

d. vertical conflict.

25. If Pizza Inn franchisees complain that other Pizza Inn franchisees are cheating on

ingredients, giving poor service, and are hurting the overall Pizza Inn image, these

complaints are indicative of a __________________.

a. parallel conflict

b. system conflict

c. horizontal conflict

d. vertical conflict

26. Conflicts between different levels of the same channel of distribution are referred to

as:

a. horizontal conflicts.

b. vertical conflicts.

c. layer-based conflicts.

d. parallel conflicts.

27. When a company like Coca-Cola has disagreements with some of its bottlers over

business practices, it is a form of:

a. horizontal conflict.

b. vertical conflict.

c. layer-based conflict.

d. parallel conflict.

28. Cooperation, role assignment, and conflict management in the channel of distribution

are attained through strong channel:

a. power.

b. positioning.

c. leadership.

d. threats.

29. One way to overcome traditional conflicts found in conventional channels of

distribution is to construct a:

a. synchronized channel of distribution.

b. global channel of distribution.

c. Norezi channel of distribution.

d. vertical channel of distribution.

30. When one or more independent producers, wholesalers, and retailers operating as

separate businesses make up the channel of distribution, it comprises which type of

distribution channel?

a. power-based

b. horizontal

c. vertical

d. conventional

31. If independent producers, wholesalers, and retailers align together but still seek

individually to maximize profits, even at the expense of profits for the system as a

whole, the group is most likely aligned in a:

a. conventional distribution channel.

b. power-based distribution channel.

c. horizontal distribution channel.

d. vertical distribution channel.

32. When producers, wholesalers, and retailers act as a unified system, they comprise a:

a. conventional marketing system.

b. power-based marketing system.

c. horizontal marketing system.

d. vertical marketing system.

33. Which of the following marketing systems is characterized by a channel of

distribution where one channel member owns the others, has contracts with them, or

has so much power that they all cooperate?

a. conventional marketing systems

b. power-based marketing systems

c. vertical marketing systems

d. horizontal marketing systems

34. All of the following would be considered to be forms of a vertical marketing system

(VMS) EXCEPT:

a. corporate.

b. contractual.

c. global.

d. administered.

35. A(n) ____________________ is a vertical marketing system that combines

successive stages of production and distribution under single ownership.

a. power-based VMS

b. corporate VMS

c. contractual VMS

d. administered VMS

36. Sears obtains more than 50 percent of its goods from companies that it partly or

wholly owns. This would be an example of a(n):

a. power-based VMS.

b. corporate VMS.

c. contractual VMS.

d. administered VMS.

37. A(n) ______________________ is a vertical marketing system in which independent

firms at different levels of production and distribution join together through contracts

to obtain more economies or sales impact than they could achieve alone.

a. power-based VMS

b. corporate VMS

c. contractual VMS

d. administered VMS

38. Independent Grocers Alliance (IGA), Western Auto, and Do It Best hardware are

all examples of:

a. franchise organizations.

b. retailer cooperatives.

c. manufacturer-sponsored retailer franchise systems.

d. wholesaler-sponsored voluntary chains.

39. If a retailer joins other retailers in organizing a new, jointly owned business to carry

on wholesaling and possibly production, the retailer has formed a:

a. retailer kiosk.

b. retailer-sponsored voluntary chain.

c. retailer cooperative.

c. franchise.

40. Most motels and fast-food restaurants are considered to be:

a. retailer cooperatives.

b. voluntary chains.

c. franchise organizations.

d. administered VMS organizations.

41. The type of franchise operation used by the automobile industry is usually a:

a. service-firm sponsored franchise system.

b. manufacturer-sponsored retailer franchise system.

c. manufacturer- sponsored wholesaler franchise system.

d. service-firm sponsored direct channel franchise system.

42. Which type of vertical marketing system coordinates the stages of production and

distribution through the size and power of one of the parties?

a. administered VMS

b. independent VMS

c. contractual VMS

d. dependent VMS

43. A ___________________ is a channel arrangement in which two or more

companies at one level join together to follow a new marketing opportunity.

a. vertical marketing system

b. parallel marketing system

c. diversified marketing system

d. horizontal marketing system

44. When Coca-Cola and Nestle formed a joint venture to market a ready-to-drink coffee

and tea worldwide, the type of marketing system that was formed would best be

described as being a:

a. vertical marketing system.

b. parallel marketing system.

c. diversified marketing system.

d. horizontal marketing system.

45. A multichannel distribution system in which a single firm sets up two or more

marketing channels to reach one or more customer segments is called a(n):

a. vertical marketing channel.

b. parallel marketing channel.

c. hybrid marketing channel.

d. horizontal marketing channel.

46. IBM at one time only sold through their own sales force. Today, however, the market

has caused changes in IBM’s distribution philosophy. The company now has 18

new channels. The correct description of this form of marketing would be to

characterize IBM’s approach as being one where ____________________ are used.

a. vertical marketing channels

b. parallel marketing channels

c. hybrid marketing channels

d. horizontal marketing channels

47. What is one of the common complaints about a hybrid marketing channel and its

effectiveness?

a. expanded sales functions

b. expanded market coverage

c. expanded global networks

d. harder to control and more conflict

48. The displacement of traditional resellers from a marketing channel by radical new

types of intermediaries is called:

a. regeneration.

b. bounded distribution.

c. disintermediation.

d. territoriality.

49. Traditional intermediaries, to avoid being swept aside in the new wave of

disintermediation, must find new ways to:

a. generate profits.

b. advertise.

c. form binding networks.

d. add value in the supply chain.

50. If a company were seeking to design a channel system, the first step would be to:

a. analyze consumer-service needs.

b. set the channel objectives and constraints.

c. analyze marketing intermediaries.

d. factor in (or out) foreign middlemen alternatives.

51. Another term or phrase for a marketing channel is:

a. customer value delivery system.

b. push-pull system.

c. service system.

d. flow system.

52. After a company has defined its channel objectives, it should next identify its:

a. profit centers.

b. major channel alternatives.

c. selection process.

d. motivation system.

53. When a marketer is in the process of identifying its major channel alternatives, it

should determine all of the following EXCEPT: (Choose the least likely.)

a. the ownership of the intermediary.

b. the types of intermediaries.

c. the number of intermediaries.

d. the responsibility of each channel member.

54. The strategy whereby a company stocks its products in as many outlets as possible is

called:

a. intensive distribution.

b. exclusive distribution.

c. selective distribution.

d. closed distribution.

55. If a company seeks to maximize brand exposure, which of the following distribution

alternatives would be the correct choice?

a. intensive distribution

b. exclusive distribution

c. selective distribution

d. open distribution

56. Giving a limited number of dealers the exclusive right to distribute the company’s

products in their territories is called _________________.

a. intensive distribution.

b. exclusive distribution.

c. selective distribution.

d. closed distribution.

57. Rolls Royce uses which of the following distribution formats?

a. intensive distribution

b. exclusive distribution

c. selective distribution

d. open distribution

58. Maytag, Whirlpool, and General Electric prefer which of the following distribution

formats to distribute the majority of their products?

a. intensive distribution

b. exclusive distribution

c. selective distribution

d. open distribution

59. The use of more than one, but fewer than all, of the intermediaries who are willing

to carry the company’s products is characteristic of which of the following

distribution formats?

a. intensive distribution

b. exclusive distribution

c. selective distribution

d. open distribution

60. Estimating the costs of selling different volumes through each proposed channel is

part of which decision area used in evaluating the major channel alternatives?

a. promotional criteria

b. economic criteria

c. control criteria

d. adaptive criteria

61. All of the following would be considered to be positive motivators to be applied to

channel members by other channel members EXCEPT:

a. higher margins.

b. ownership in the supplying company.

c. special deals.

d. display allowances.

62. When a seller of a product requires that its dealers not handle competitors’ products,

the seller’s strategy is called:

a. multilevel distribution.

b. prohibitive retailing.

c. exclusive dealing.

d. bonded partnering.

63. Tying agreements, though not necessarily illegal, do tend to violate the ___________

if they tend to lessen competition substantially.

a. Robinson-Patman Act

b. Sherman Anti-trust Act

c. Clayton Act

d. Hatfield Act

64. Which of the following terms is similar to the term “marketing logistics?”

a. channel of distribution

b. vertical integration of distribution

c. physical distribution

d. horizontal distribution

65. ______________ is the tasks involved in planning, implementing, and controlling

the physical flow of materials, final goods, and related information from points of

origin to points of consumption to meet customer requirements at a profit.

a. A channel of distribution

b. Vertical integration of distribution

c. Horizontal distribution

d. Physical distribution

66. Customer-centered marketing logistics thinking starts with:

a. products at the plant and tries to find low-cost solutions to get them to customers.

b. the marketplace and works backwards to the factory.

c. retailers and identifies their problems as a way to satisfy the ultimate consumer.

d. wholesalers (as gatekeepers) and identifies their problems as being the secret to

successful distribution.

67. Managing value-added flows of materials, final goods, and related information

between suppliers, the company, resellers, and final users is called:

a. a channel of distribution.

b. marketing network analysis.

c. supply chain management.

d. conscription flow management.

68. Moving broken, unwanted, or excess products returned by consumers or resellers

is called __________ distribution.

a. outbound

b. inbound

c. reverse

d. salvage

69. About ___________ percent of an average product’s price is accounted for by

shipping and transportation.

a. 5

b. 15

c. 18

d. 22

70. The goal of the marketing logistics system should be to provide:

a. a targeted level of promotional support.

b. a targeted level of customer service at the least cost.

c. a targeted level of transportation expense ratio.

d. a targeted level of field support.

71. All of the following are considered to be major logistics functions EXCEPT:

a. promotion to wholesalers and retailers.

b. order processing.

c. inventory management.

d. transportation.

72. Deciding on the number of and location for stocking facilities for storage of products

is part of which of the following physical distribution decisions?

a. order processing

b. warehousing

c. inventory

d. transportation

73. A large, highly automated warehouse designed to receive goods from various plants

and suppliers is called a:

a. storage bin.

b. collection point.

c. distribution center.

d. demarcation facility.

74. The mode of transportation that accounts for the largest percentage of cargo moved

in the United States is:

a. rail.

b. truck.

c. water.

d. pipeline.

75. The most expensive form of transportation with respect to shipping goods is:

a. rail.

b. water.

c. air.

d. truck.

76. The slowest form of transportation for shipping goods is:

a. rail.

b. water.

c. air.

d. truck.

77. If a company were to piggyback (using rail and trucks combined) its products, it

would be using what is called:

a. alternative transportation.

b. dual transportation.

c. intermodal transportation.

d. train spotting.

78. A growing number of firms now outsource their logistics to ________________

providers such as Ryder Systems, UPS Worldwide Logistics, or FedEx Logistics.

a. ground system

b. point-to-point

c. speed factor

d. third-party logistics

79. All of the following are reasons companies use third-part logistics providers

EXCEPT: (Pick the least likely.)

a. these providers accept low profit margins willingly.

b. these providers can often get products to market more efficiently and at a lower

cost.

c. outsourcing frees a company to focus more intensely on its core business.

d. integrated logistics companies understand increasingly complex logistics

environments.

TRUE/FALSE QUESTIONS
80. Marketing channel decisions are among the most important decisions that

management faces.

81. Companies often pay too little attention to their distribution channels.

82. One of reasons that distribution decisions usually can be managed is that the channel

decision involves relatively short-term commitments.

83. Most producers choose to not use intermediaries to bring their products to market

because of the cost involved.

84. A distribution channel is described as being a set of interdependent organizations

involved in the process of making a product or service available for use or

consumption by the consumer or business user.

85. From the economic system’s point of view, the role of marketing intermediaries is

to boost the profits of manufacturer’s who tend to drive the entire system.

86. Several key functions operate a distribution channel. One of these, matching, is

described as being shaping and fitting the offer to the buyer’s needs, including

activities such as manufacturing, grading, assembling, and packaging.

87. A key question in distribution management is whether such functions as matching,

negotiation, contact, promotion, information, financing, risk taking, and physical

distribution need to be performed.

88. A channel level is the layer of intermediaries that performs some work in bringing

the product and its ownership closer to the final buyer.

89. An indirect marketing channel has no intermediary levels.

90. All institutions in the distribution channel are connected by several types of flows

and one of these flows is described as being flow of ownership.

91. Today, channel members have learned to take a broad view of channel success where

every member’s needs and long-term goals are appreciated and recognized.

92. Vertical conflict in a distribution channel occurs among firms at the same level of the

channel.

93. Some conflict in the channel of distribution is considered to be healthy.

94. Vertical marketing systems are now challenging conventional marketing channels

for dominance in distribution networks.

95. Western Auto would be a good illustration of a retailer cooperative.

96. Kraft and General Electric would be good examples of firms that use

administered VMS.

97. If McDonald’s places one of its fast-food outlets in a Wal-Mart store this would

be an illustration of a horizontal marketing system.

98. One of the advantages of a hybrid marketing channel system is that it is easier to

control than traditional marketing channel systems.

99. The displacement of traditional resellers from a marketing channel by radical new

types of intermediaries is called disintermediation.

100. Intensive distribution occurs if a firm is stocking the product in as many outlets as

possible.

101. A good illustration of selective distribution would be Rolls-Royce and their system

of dealers.

102. Most companies see their intermediaries as first-line customers.

103. Exclusive dealing has been declared strictly illegal by the Clayton Act of 1914.

104. A channel of distribution is another term for physical distribution.

105. Logistics systems traditionally maximize customer service and minimize distribution

costs.

106. The major logistics functions include order processing, warehousing, inventory

management, and transportation.

107. A vendor-managed inventory system is a large, highly automated warehouse

designed to receive goods from various plants and suppliers, take orders, fill them

efficiently, and deliver goods to customers as quickly as possible.

108. Water carriers, because of the bulk they can carry, account for the largest

percentage of cargo ton-miles among the major transportation alternatives found

in the United States.

109. If a distributor were to combine rail and truck to bring a good from point of

manufacture to the consumer, the distributor would have just used the piggyback

system found in intermodal transportation.

110. The goal of integrated supply chain management is to harmonize all of the

company’s logistics decisions.

111. A good illustration of a third-party logistics provider would be Ryder Systems.

ESSAY QUESTIONS

112. Caterpillar and its dealers work in close harmony to find better ways to bring value to customers. This close working relationship between Caterpillar and its dealers comes down to more than just formal contracts and business agreements. List and briefly describe the five (5) principles and practices that Caterpillar’s powerful partnership rests upon. Be specific in wording and description.

113. Explain why companies use marketing intermediaries and what key functions are performed within the channel.

114. Describe and illustrate the concepts of channel level, a direct marketing channel, and an indirect marketing channel.

115. Explain what channel conflict is and the various forms it can take.

116. Identify what a vertical marketing system is and characterize the three primary forms described in the text.

117. Characterize a horizontal marketing system and provide an illustration of such a system.

118. Explain the phenomenon known as disintermediation. What problems and opportunities does disintermediation hold for both producers and intermediaries in the future?

119. Companies must make decisions on how many marketing intermediaries to use at any level of marketing distribution. This is especially critical at the retail level. Name and identify the three strategies that are available with respect to number of marketing intermediaries. Give an example of each form.

120. Define physical distribution and characterize the major functions performed within a physical distribution system.

121. In shipping goods to its customers, a company can choose from among five transportation forms. List and characterize each of these forms.

122. Discuss the term “integrated supply chain management” and its implications.

APPLICATION QUESTION

123. Listed below are three separate scenarios that require correct transportation decisions to ensure that the products in question reach their final destination on time and intact. For each of the scenarios choose one of the established transportation means (air, water, truck, pipeline, or rail) that seems to be most appropriate. Justify and explain your choice. Be specific with your justification and explanation.

(a) Jerry Jones, president of Flowers-R-Us, wants to order some unique orchids from Hawaii for the upcoming prom season in his local community. He has one month before the big dances begin. He plans to use brochures to sell the flowers to his young customers in local high schools. What would be Mr. Jones’s best transportation alternative?

(b) Byrd Lumber Company has received a large order of lumber to build three new 200-unit apartment complexes. It is essential that the lumber arrive on time, however, delivery is not required for three weeks. Byrd Lumber is located in Lubbock, Texas, and must order its goods from mills in Oregon. What would be Byrd’s best transportation alternative?

(c) Phillips Drilling of Houston, Texas, needs to order a new technical precision surveying instrument from a supplier in Toronto, Canada. The instrument is highly sensitive and must be packed with great care. The instrument is about the size of a microwave oven and weights about 80 pounds. Its total value is $30,000. The company needs the instrument as soon as possible but is under no emergency situation. What would be Phillips’ best transportation alternative?

Gudwriter Essay Writing