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Exam 15: Distributing Products

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Question 41

Multiple Choice

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Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers are known as a

A) multifunction network.
B) supply chain.
C) critical distribution path.
D) marketing priority network.

E) A) and B)
F) A) and C)

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Question 42

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The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.

A) True
B) False

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Question 43

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The two basic types of merchant wholesalers are

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its

________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.

Which of the following activities would be most closely associated with inbound logistics?

One thing that franchise systems, wholesaler-sponsored chains, and retail cooperatives have in common is that they are all

Direct marketing involves having a salesperson visit the customer's home or place of business.

McDonald's, Planet Fitness, Baskin-Robbins, and Dunkin Donuts all make use of the ________ form of contractual distribution system.

Mini-Case "We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor. "First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions." -Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n)

An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.

Brokers are marketing intermediaries that take title to the goods they help distribute.

With the current emphasis on product development, pricing, branding, and promotion, the physical distribution of materials and goods is no longer a major concern of marketing.

Marketing intermediaries concentrate on providing mainly form, time, and place utility, while producers focus on the provision of possession, information, and service utility.

In the distribution process, the largest percentage of the retail price goes to

________ warehouses are used to hold products for a relatively long time.

Morgner Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Morgner provides its customers with ________ utility.

In retail cooperatives, the members of the distribution system are bound to cooperate by a contractual agreement.