Questions and Answers
Franchisors agree to operate outlets in accordance with procedures prescribed by its franchisees.
False
Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of _________ power.
reward
Which vertical marketing system gives complete power to the parent company?
In a ______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members.
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Which statement about marketing channels is true?
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Another term for marketing channel management is ______ management.
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Using demand notifications to notify sales associates who can physically pull an item from store shelves and verify its availability is part of __________ task management.
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Manufacturers make products and sell them to ______, who resell the merchandise to retailers.
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The first decision that is necessary to make merchandise flow is to choose a transportation company.
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To whom are a lump sum and royalties paid when a franchise opens?
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A wholesaler is ______.
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What is the first decision to be made when considering merchandise flow?
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A direct marketing channel sells a product from a manufacturer to a consumer ______.
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In the management of market channels, a strategic relationship is also known as ______.
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The integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries is called ______ management.
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In a ______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved.
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Relationships in supply chains ______.
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The first flow of information (Flow 1) in a supply chain occurs from ______.
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Study Notes
Franchising and Channel Structures
- Franchisors do not operate outlets under franchisees' procedures.
- Reward power is exemplified when a buyer offers more purchase if wholesale prices drop.
- Corporate vertical marketing systems grant total control to the parent company.
- Conventional marketing channels prioritize individual member profits, regardless of overall channel effects.
Marketing Channels Overview
- A marketing channel can integrate both direct and indirect channels.
- Supply chain management is synonymous with marketing channel management.
- Standard flow of information in marketing channels occurs between manufacturers, distribution centers, stores, and customers.
Supply Chain Dynamics
- Demand notifications alert sales associates for item availability verification through mobile task management.
- Wholesalers act as middlemen, purchasing goods from manufacturers to sell to retailers.
- The decision about merchandise flow initiation does not start with selecting a transportation company.
Franchise Financials and Marketing Channel Components
- In a franchise, lump sums and royalties are paid to the franchisor.
- Key components of marketing channels include warehouses and stores, excluding other entity types like environmental agencies.
Information Flow in Supply Chains
- Customer purchases initiate information flow to suppliers, distribution centers, and manufacturers.
- A wholesaler is defined as a business buying from manufacturers to sell to retailers.
Initial Decisions in Merchandise Flow
- The primary consideration in merchandise flow is determining the destination of goods.
- Direct marketing channels operate by selling direct from manufacturer to consumer without retailer involvement.
- Indirect channels can involve intermediaries like retailers and wholesalers.
Relationships in Supply Chains
- A strategic relationship in supply chains fosters long-term partnerships focused on mutual profitability.
- Interdependence is crucial as supply chain relationships are built on fulfilling each other’s needs.
- The first information flow in a supply chain occurs from customer to store, ensuring responsiveness to consumer demand.
Information Exchange
- Supply chain information circulates between manufacturers, wholesalers, and distribution centers but excludes competitors.
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Description
Test your knowledge on marketing concepts with these MKT 350 flashcards. Each flashcard presents a question or term related to franchise operations and marketing power dynamics. Perfect for students looking to reinforce their understanding of key marketing principles.
