kotler - chapter12(7)

100) In using air transportation and then expedited truck carriers to deliver specialty items to customers outside of a designated delivery range, Miller Meats is using ________. A) all of its supply chain

B) all of its value delivery network C) indirect marketing channels D) intermodal transportation E) a vertical marketing system Answer: D Diff: 2 Page Ref: 360 AACSB: Reflective Thinking Skill: Application Objective: 12-5

101) Producing a product or service and making it available to buyers requires building

relationships not just with customers, but also with key suppliers and resellers in the company's supply chain. Answer: TRUE Diff: 1 Page Ref: 337 Skill: Concept Objective: 12-1

102) The term supply chain may be too limited because it takes a make-and-sell view of the business.

Answer: TRUE Diff: 2 Page Ref: 338 Skill: Concept Objective: 12-1

103) In creating customer value, it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners. Answer: FALSE Diff: 2 Page Ref: 338 AACSB: Analytic Skills Skill: Application Objective: 12-1

104) With the success of the Internet, few producers sell through intermediaries today. Answer: FALSE Diff: 1 Page Ref: 339 AACSB: Use of IT Skill: Concept Objective: 12-1

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105) Imaginative distribution systems can be used to gain a competitive advantage. Answer: TRUE Diff: 1 Page Ref: 339 Skill: Concept Objective: 12-1

106) A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers. Answer: TRUE Diff: 2 Page Ref: 340 Skill: Concept Objective: 12-1

107) Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation. Answer: TRUE Diff: 2 Page Ref: 340 AACSB: Communication Skill: Concept Objective: 12-1

108) It is safe to say that distribution channels are fairly simple behavioral systems in which people and companies interact to accomplish individual company and channel goals. Answer: FALSE Diff: 2 Page Ref: 342 Skill: Concept Objective: 12-2

109) Judy Smith is the manager of the local McDonald's franchise in Carterville. Recently the home office did not let her participate in co-op advertising like the other McDonald's in her district. Now she is irritated and demands fairness. This is an example of horizontal conflict. Answer: FALSE Diff: 3 Page Ref: 342 AACSB: Reflective Thinking Skill: Application Objective: 12-2

110) In a conventional distribution channel, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict. Answer: TRUE Diff: 2 Page Ref: 343 Skill: Concept Objective: 12-3

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111) When Sherwin Williams Paint Company has single ownership of integrated, successive stages of production and distribution, it has created a corporate VMS. Answer: FALSE Diff: 3 Page Ref: 344 AACSB: Reflective Thinking Skill: Application Objective: 12-3

112) When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow a new marketing opportunity, they are forming a horizontal marketing system. Answer: TRUE Diff: 2 Page Ref: 345 AACSB: Reflective Thinking Skill: Application Objective: 12-3

113) Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week the owners opened up a walk-in discounted consumer produce outlet. Always is now using a multichannel distribution system. Answer: TRUE Diff: 2 Page Ref: 346 AACSB: Reflective Thinking Skill: Application Objective: 12-3

114) Disintermediation as a trend is on the rise in U.S. business. Answer: TRUE Diff: 1 Page Ref: 347 Skill: Concept Objective: 12-3

115) Disintermediation has occurred when an online marketer takes business away from traditional brick-and-mortar retailers. Answer: TRUE Diff: 2 Page Ref: 347 Skill: Concept Objective: 12-3

116) The faster the delivery, the greater the assortment provided, and the more add-on services supplied, the more the channel's service level is restricted. Answer: FALSE Diff: 2 Page Ref: 349 Skill: Concept Objective: 12-3

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117) Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area. Answer: FALSE Diff: 2 Page Ref: 351 Skill: Concept Objective: 12-3

118) The producer and intermediaries need to agree on the terms and responsibilities of each member, including price policies, conditions of sale, territorial rights, and specific services to be performed by each party. Answer: TRUE Diff: 2 Page Ref: 351 Skill: Concept Objective: 12-3

119) Generally speaking, a company's marketing channel objectives are influenced by the level of customer service sought, the nature of the company, its products, its marketing intermediaries, its competitors, and the environment. Answer: TRUE Diff: 2 Page Ref: 350 Skill: Concept Objective: 12-3

120) Distribution systems are relatively consistent from county to country, making it easy for international marketers to design channels. Answer: FALSE Diff: 2 Page Ref: 352

AACSB: Multicultural and Diversity Skill: Concept Objective: 12-3

121) Under the strategy of exclusive distribution, a seller allows only certain retail outlets to carry its products. Answer: TRUE Diff: 2 Page Ref: 356 Skill: Concept Objective: 12-4

122) Some major corporations such as Procter & Gamble and General Motors have developed logistics systems that both maximize customer service and minimize distribution costs. Answer: FALSE Diff: 3 Page Ref: 357 Skill: Concept Objective: 12-5

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123) The key to managing inventory is to balance the costs and benefits of holding larger inventories with the costs and benefits of holding less. Answer: TRUE Diff: 3 Page Ref: 359 Skill: Concept Objective: 12-5

124) When shipping large amounts of bulk products such as forest products, coal, sand, or rock over long distances, a company should choose large trucks because of their low cost per ton shipped.

Answer: FALSE Diff: 1 Page Ref: 360 AACSB: Analytic Skills Skill: Concept Objective: 12-5

125) Integrated logistics management aims to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Answer: TRUE Diff: 2 Page Ref: 361 AACSB: Communication Skill: Concept Objective: 12-5

126) Explain why \supply chain and demand chain.

Answer: Supply chain takes a make-and-sell view of the business, using materials and other inputs as the starting point for market planning instead of the needs of target customers. Demand chain takes a sense-and-respond view, starting with the needs of target customers and planning a chain of resources and activities with the goal of creating customer value. However, a demand chain is a step-by-step, linear view of purchase-production-consumption activities. This does not allow for the flexibility made possible by the Internet and other technologies. Value delivery network is more appropriate because it is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system. Diff: 1 Page Ref: 338 AACSB: Analytic Skills Skill: Application Objective: 12-1

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