MKT 320 EXAM 4 QUESTIONS WITH ANSWERS
A+ GRADED
Supply Chain Management - ANSWER Refers to a set of approaches and techniques
firms employ to efficiently and effectively integrate their suppliers, manufacturers,
warehouses, stores, and transportation intermediaries into a seamless value chain in
which merchandise is produced and distributed in the right quantities, to the right
locations, and at the right time, as well as to minimize systemwide costs while satisfying
the service levels their customers require.
wholesalers - ANSWER firms that buy products from manufacturers and resell them to
retailers; retailers sell products directly to consumers.
Marketing channels add value - ANSWER The components manufacturer helps the stove
manufacturer by supplying parts and materials. The stove maker turns the components
into the stove. The transportation company gets the stove to the retailer. The retailer
stores the stove until the customer wants it, educates the customer about product
features, and delivers and installs the stove. At each step, the stove becomes more
costly but also more valuable to the consumer.
how marketing channels add value - ANSWER reduce number of transactions, increase
value for customers, more efficient and effective
distribution center - ANSWER a facility for the receipt, storage, and redistribution of
goods to company stores, may be operated by retailers, manufacturers, or distribution
specialists.
fulfilment center - ANSWER are used to ship directly to customers.
Just-in-time or Quick response - ANSWER inventory management systems that deliver
less merchandise on a more frequent basis than in traditional inventory systems. The
firm gets the merchandise just in time for it to be used in the manufacture of another
product or for sale when the customer wants it.
,marketing channel management affects other aspects of marketing - ANSWER •Fulfilling
delivery promises
•Meeting customer expectations
•Reliant on an efficient supply chain
Designing Marketing Channels - ANSWER When a firm is just starting out or entering a
new market, it doesn't typically have the option of designing the best marketing channel
structure—that is, choosing from whom it buys or to whom it sells. A new sporting goods
retailer may not have the option of carrying all the manufacturer lines it wants because
other competing retailers in its market area might carry the same products. On the
other side, a small specialty sporting goods apparel manufacturer may not be able to
place its products in major stores such as Dick's Sporting Goods because its line is
unproven, and the products might duplicate lines that the retailer already carries.
Chapter 17discusses in more depth how manufacturers choose their retailer partners.
direct marketing channel - ANSWER there are no intermediaries between the buyer and
seller
-Typically, the seller is a manufacturer, such as when a carpentry business sells
bookcases through its own store and online to individual consumers. The seller also can
be an individual, such as when a knitter sells blankets and scarves at craft fairs, on Etsy,
and through eBay.
-When the buyer is another business, such as when Boeing sells planes to JetBlue, the
marketing channel still is direct, but in this case, the transaction is a
business-to-business one
indirect marketing channel - ANSWER one or more intermediaries work with
manufacturers to provide goods and services to customers.
franchising - ANSWER is a contractual agreement between a franchisor and a
franchisee that allows the franchisee to operate a retail outlet using a name and format
developed and supported by the franchisor
-In a franchise contract, the franchisee pays a lump sum plus a royalty on all sales in
return for the right to operate a business in a specific location. The franchisee also
agrees to operate the outlet in accordance with the procedures prescribed by the
, franchisor. The franchisor typically provides assistance in locating and building the
business, developing the products or services sold, training management, and
coordinating advertising. To maintain the franchisee's reputation, the franchisor also
makes sure that all outlets provide the same quality of services and products.
managing the marketing channel and supply chain - ANSWER Marketing channels and
supply chains comprise various buying entities such as retailers and wholesalers,
sellers such as manufacturers or wholesalers, and facilitators of the exchange such as
transportation companies. Similar to interpersonal interactions, their relationships can
range from one-time arrangements to close working partnerships. In most cases,
though, interactions occur across the supply chain because the parties want something
from each other: Home Depot wants table saws from DeWalt; DeWalt wants an
opportunity to sell its tools to the general public; both companies want UPS to deliver
the merchandise.
vertical channel conflict - ANSWER When supply chain members that buy and sell to one
another are not in agreement about their goals, roles, or rewards
-Avoiding vertical channel conflicts demands open, honest communication. Buyers and
vendors all must understand what drives the other party's business, their roles in the
relationship, each firm's strategies, and any problems that might arise over the course
of the relationship
horizontal channel conflict - ANSWER can also occur when there is disagreement or
discord among members at the same level in a marketing channel, such as two
competing retailers or two competing manufacturers.
strategic relationship - ANSWER in which the marketing channel members are
committed to maintaining the relationship over the long term and investing in
opportunities that are mutually beneficial.
mutual trust - ANSWER Mutual trust holds a strategic relationship together. Trust is the
belief that a partner is honest (i.e., reliable, stands by its word, sincere, fulfills
obligations) and benevolent Page **(i.e., concerned about the other party's welfare).
-When vendors and buyers trust each other, they are more willing to share relevant
ideas, clarify goals and problems, and communicate efficiently.
-Information shared between the parties, such as inventory positions in stores, thus
A+ GRADED
Supply Chain Management - ANSWER Refers to a set of approaches and techniques
firms employ to efficiently and effectively integrate their suppliers, manufacturers,
warehouses, stores, and transportation intermediaries into a seamless value chain in
which merchandise is produced and distributed in the right quantities, to the right
locations, and at the right time, as well as to minimize systemwide costs while satisfying
the service levels their customers require.
wholesalers - ANSWER firms that buy products from manufacturers and resell them to
retailers; retailers sell products directly to consumers.
Marketing channels add value - ANSWER The components manufacturer helps the stove
manufacturer by supplying parts and materials. The stove maker turns the components
into the stove. The transportation company gets the stove to the retailer. The retailer
stores the stove until the customer wants it, educates the customer about product
features, and delivers and installs the stove. At each step, the stove becomes more
costly but also more valuable to the consumer.
how marketing channels add value - ANSWER reduce number of transactions, increase
value for customers, more efficient and effective
distribution center - ANSWER a facility for the receipt, storage, and redistribution of
goods to company stores, may be operated by retailers, manufacturers, or distribution
specialists.
fulfilment center - ANSWER are used to ship directly to customers.
Just-in-time or Quick response - ANSWER inventory management systems that deliver
less merchandise on a more frequent basis than in traditional inventory systems. The
firm gets the merchandise just in time for it to be used in the manufacture of another
product or for sale when the customer wants it.
,marketing channel management affects other aspects of marketing - ANSWER •Fulfilling
delivery promises
•Meeting customer expectations
•Reliant on an efficient supply chain
Designing Marketing Channels - ANSWER When a firm is just starting out or entering a
new market, it doesn't typically have the option of designing the best marketing channel
structure—that is, choosing from whom it buys or to whom it sells. A new sporting goods
retailer may not have the option of carrying all the manufacturer lines it wants because
other competing retailers in its market area might carry the same products. On the
other side, a small specialty sporting goods apparel manufacturer may not be able to
place its products in major stores such as Dick's Sporting Goods because its line is
unproven, and the products might duplicate lines that the retailer already carries.
Chapter 17discusses in more depth how manufacturers choose their retailer partners.
direct marketing channel - ANSWER there are no intermediaries between the buyer and
seller
-Typically, the seller is a manufacturer, such as when a carpentry business sells
bookcases through its own store and online to individual consumers. The seller also can
be an individual, such as when a knitter sells blankets and scarves at craft fairs, on Etsy,
and through eBay.
-When the buyer is another business, such as when Boeing sells planes to JetBlue, the
marketing channel still is direct, but in this case, the transaction is a
business-to-business one
indirect marketing channel - ANSWER one or more intermediaries work with
manufacturers to provide goods and services to customers.
franchising - ANSWER is a contractual agreement between a franchisor and a
franchisee that allows the franchisee to operate a retail outlet using a name and format
developed and supported by the franchisor
-In a franchise contract, the franchisee pays a lump sum plus a royalty on all sales in
return for the right to operate a business in a specific location. The franchisee also
agrees to operate the outlet in accordance with the procedures prescribed by the
, franchisor. The franchisor typically provides assistance in locating and building the
business, developing the products or services sold, training management, and
coordinating advertising. To maintain the franchisee's reputation, the franchisor also
makes sure that all outlets provide the same quality of services and products.
managing the marketing channel and supply chain - ANSWER Marketing channels and
supply chains comprise various buying entities such as retailers and wholesalers,
sellers such as manufacturers or wholesalers, and facilitators of the exchange such as
transportation companies. Similar to interpersonal interactions, their relationships can
range from one-time arrangements to close working partnerships. In most cases,
though, interactions occur across the supply chain because the parties want something
from each other: Home Depot wants table saws from DeWalt; DeWalt wants an
opportunity to sell its tools to the general public; both companies want UPS to deliver
the merchandise.
vertical channel conflict - ANSWER When supply chain members that buy and sell to one
another are not in agreement about their goals, roles, or rewards
-Avoiding vertical channel conflicts demands open, honest communication. Buyers and
vendors all must understand what drives the other party's business, their roles in the
relationship, each firm's strategies, and any problems that might arise over the course
of the relationship
horizontal channel conflict - ANSWER can also occur when there is disagreement or
discord among members at the same level in a marketing channel, such as two
competing retailers or two competing manufacturers.
strategic relationship - ANSWER in which the marketing channel members are
committed to maintaining the relationship over the long term and investing in
opportunities that are mutually beneficial.
mutual trust - ANSWER Mutual trust holds a strategic relationship together. Trust is the
belief that a partner is honest (i.e., reliable, stands by its word, sincere, fulfills
obligations) and benevolent Page **(i.e., concerned about the other party's welfare).
-When vendors and buyers trust each other, they are more willing to share relevant
ideas, clarify goals and problems, and communicate efficiently.
-Information shared between the parties, such as inventory positions in stores, thus
