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Exam 15: Distributing Products

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Question 101

True/False

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A retail sale is a sale to a consumer of products for his or her own use.

A) True
B) False

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Question 102

Multiple Choice

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About __________ of the cost of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

A) 25 percent
B) 30 percent
C) 75 percent
D) 90 percent

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

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Question 103

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Some Web sites are trying to improve their service by providing assistance from a real person.

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.

Marketing intermediaries add ________ utility to products by having them available when consumers want them.

Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers,including a chain of Kumquat Direct retail stores.Kumquat is using a:

Tammy Knowles is the publisher of "New Woman Magazine," which is a publication targeted to Gen Y women.Because it is a small,new publication,some of the larger bookstores,convenience stores and newsstands are not agreeing to distribute the magazine.Tammy is very concerned by this trend,because she believes that her publication,like most magazines,needs ____________ distribution in order to succeed.

Manufacturers are usually able to perform marketing functions such as transporting,advertising,and storing,faster and more cheaply than marketing intermediaries.

Currently,in the United States the greatest volume of goods and services is shipped by:

Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.

Inverted logistics is the term used for the activities involved in bringing products back to the producer due to defects or for recycling of materials.

Marketing intermediaries:

A(n) ______________ distribution strategy uses only one retail outlet in a given geographic area.

Soundworthy Stereo is a producer of high quality speakers and stereo components.The company sells its products through a few preferred retailers in any geographic area.Soundworthy uses a selective distribution strategy.

A _________ is a marketing intermediary that sells products to other organizations.

Exclusive distribution is the use of only one retail outlet in a given geographic area.

A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.

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

Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

One drawback of kiosks is that their high overhead costs result in low profit margins.