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Exam 15: Distributing Products

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Question 101

True/False

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The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.

A) True
B) False

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Question 102

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Robbie Veath brings together buyers and sellers of used heavy construction equipment,and helps them negotiate the terms of the sale.However,Robbie never actually takes title to any of the equipment himself,nor does he provide any financing for the buyer.Robbie is acting as a:

A) channel captain.
B) broker.
C) wholesaler.
D) logistics specialist.

E) All of the above
F) C) and D)

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Question 103

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The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses.In a selective strategy,a variety of profitable niche markets are selected,while in an exclusive strategy one specific market segment is targeted,and all others are excluded.

Category killer stores tend to compete mainly on the basis of carrying a wide array of products,superior service,and low prices.

As long as they do not represent competing products,manufacturer's agents can represent more than one manufacturer in a given sales territory.

Zintelle,Inc.is a large manufacturing firm.It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers.This agreement will help Zintelle reduce the costs associated with outbound logistics.

Sharp Focus Cameras is facing intense competitive pressure.Top marketing managers are looking for ways to cut costs.They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.If Sharp Focus carries out this plan,it is likely to find that:

A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility.

Larry and Dale Ingram solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies.Larry and Dale operate as drop shippers.

Franchise systems are one type of __________ distribution system.

Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

Paper 'N More sells a variety of office supplies to small businesses and local offices.The fact that it sells only to other firms and not consumers indicates that Paper 'N More engages only in:

Producers of shopping goods such as furniture,appliances,and clothing usually rely on an exclusive distribution strategy.

Supply chain management not only deals with the movement of materials,parts,and finished goods,it also manages the return of goods and recycling of materials when appropriate.

Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.

Currently,Lite Bite uses a lot of intermediaries to help distribute its products.Collectively,the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the:

Candy,gum,cigarettes,and popular magazines are usually distributed using a selective distribution strategy.

A freight forwarder breaks one large shipment into multiple small shipments so that it can be transported by trucks or aircraft with limited cargo capacities.

Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

The major disadvantage of multilevel marketing is that the high entry cost for most sellers means that only relatively wealthy individuals can use this approach.