MAR 3023 Final Exam
Historically, the "channel captain" has been the manufacturer. In recent years, the
power has been shifting to
Retailers
Which of the following is TRUE regarding channels of distribution?
Transaction efficiency is an advantage gained through the use of intermediaries.
When a channel member bypasses another member and sells or buys product directly,
this is termed
Disintermediation
Cross-docking and inventory management are examples of what concept?
Logistics
Logistics is most closely related to which element of the marketing mix?
Place
In a logistics setting, replenishment time refers to lead time for an item, which means
the lag from ordering an item until it is
received and ready for use or sale.
Jon Jabber is a full-function merchant wholesaler who sells hula hoops all over the
country. Jon purchases the hula hoops from the manufacturer and stores them in his
warehouse until he receives an order from a retailer, at which time Jon packs and loads
a truck with the product and ships it to its destination. Jon's firm is what type of
wholesaler?
Distributor
In terms of distribution, when marketing channel members are engaged in financing,
grading, marketing information and research, they are performing the _____ function.
Logistical
Larry's parents decide to buy him a car as a graduation present, so Larry places an
order through Jeep.com for a customized Jeep Wrangler. The information that he
specifies is transferred electronically to DaimlerChrysler, the manufacturer of Jeeps.
The order is then sent electronically from DaimlerChrysler to its suppliers so they can
send the necessary parts exactly when needed to assemble Larry's Jeep Wrangler.
Larry's Jeep is manufactured and sent to the local dealer for Larry to pick up. The entire
process, from order to delivery, took only ten days. This process is an example of _____
made possible by _____.
"just-in-time" inventory management; electronic data interchange
,Customers currently link to Cisco's website to configure, price, and order its networking
equipment. Cisco then sends orders back out across the Internet to producers and
assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and
tested to Cisco standards, sometimes with procedures run remotely by Cisco. Most are
then drop-shipped to buyers, untouched by human hands on Cisco's payroll. The
individuals who monitor these transactions and make sure each is performed in a cost-
effective and timely fashion are engaged in
supply chain management
Eddie Bauer wants to expand its market share, which is currently 30%. Its current
"share of voice" is also 30%. If the company wants to have a market share of 40% by
the end of the year, what "share of voice" does it need to have during the year?
So, 30% plus 15% equal 45% total share of voice needed in order to achieve the
objective.
Jamie is conducting a S.W.O.T. analysis for Pepsi. She takes a look at the soda market
and sees that there is a little company called "Great Taste" that has figured out a way to
make a diet soda that tastes normal, has zero calories, and helps you control your
appetite. Great Taste is concluding negotiations to sell its secret recipe to Coca-Cola.
Jamie considers this a(n)
Threat
Assume Gator Specialty Products conducted a product portfolio analysis and found that
its t-shirt line was a cash cow. Which of the following would be a reasonable strategy for
Gator Specialty?
Invest profits derived from the t-shirt line into other Gator Specialty lines categorized as
question marks.
Gators, Inc., a store that specializes in University of Florida merchandise, centered its
marketing plan on the objective to increase sales by 50%. This was based on the
assumption that the Gators would be playing in the National Championship game.
Because of the unexpected firing of Coach Zook and the not-so-hot season, Gators, Inc.
set its objective too high. Fortunately, Gators, Inc. included an alternate way to increase
sales by 30% into its marketing plan, just in case the football team was not as
successful as anticipated. This is an example of
contingency plan
Why would it be unwise for Target to try to gain more market share by matching Wal-
Mart's low prices?
This is only an effective strategy if a firm has the lowest cost in the industry, which Wal-
Mart has.
1David and Cecilia Stanford, owners of Prairie Herb vinegars, decided to offer the
product in 5-ounce and 13-ounce sizes as well as in a 16-ounce European glass bottle.
They also decided to price the smaller bottles at $4.45 and the largest bottles at $13.25.
They were determining some of Prairie Herb's
, Tactics
_____ describes the totality of features and characteristics of a good or service that
bear on its ability to satisfy stated or implied needs.
Quality
Bud Light is running a TV commercial that says, in part, "All light beers are low in carbs;
choose on taste." By attempting to persuade beer drinkers that Bud Light's superior
taste is what really matters, Budweiser is using what concept?
Point of difference
Each business unit has marketing and other specialized activities (e.g., finance,
manufacturing, or research and development) at the _____ level, which is where groups
of specialists create value for the organization.
Functional
A company that uses an organizational structure based on _____ uses functional
groupings
business activities such as marketing, finance, and R&D
Ideally, in effective marketing planning, goals should be _____ in terms of what is to be
accomplished and when.
Quantified and measurable
A _____ is a comprehensive, unbiased periodic review of the strategic marketing
process of a firm or strategic business unit (SBU). Marketing audit
Marketing audit
Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates
total industry sales by compiling a list of all department stores and their sales for the
previous year. Next, she estimates Bloomingdale's market share within the industry. To
find the value of one share point, Caroline must do which of the following?
Divide total industry sales by 100.
Bill is the owner of M.E. Inc., which produces miniature internal combustion engines that
are used to operate hydraulic systems in heavy machinery. Bill wants to expand his
market share by three share points. Total industry sales are $120 million; M.E. Inc.
sales are $30 million with a gross margin of $1.2 million. The total industry marketing
expenditures are $4 million; M.E.'s current marketing budget is $1 million. What is the
amount of the gain/loss M.E. Inc. will experience if they make the investment to acquire
three additional market share points, and should M.E. Inc. make this investment?
$36,000 loss; M.E. Inc. may or may not want to make this investment depending on
their strategic goals.
Management experts warn against the tendency to excessively analyze a problem
instead of taking action. This problem is called
