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Exam 15: Distributing Products

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Question 161

Multiple Choice

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Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

A) Carry a large inventory of their products
B) Provide limited service and delivery for their products
C) Sell their products at substantially discounted prices
D) Pay attention to the multiple competing brands that they carry

E) A) and B)
F) None of the above

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Question 162

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To marketers,the term utility refers to the value added to goods or services by organizations when they make the product more useful or accessible to consumers.

A) True
B) False

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Question 163

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Northern Lights Electronics just completed plans to distribute its new touch monitor screen.The product has several unique features that differentiate it from competitor products.The marketing team plans to begin a roll-out with ____________ to only one traditional retailer for the first two months.This strategy will give consumers the perception of the product's stand-out personality and increase demand.Marketing will proceed with _______________ for the next four months,where it plans to distribute to three other retailers,as well.For the last six months of the year,it will initiate distribution agreements with discount retailers and online retailers,and any other electronics store that wants to carry it.The marketing team is confident that the monitor will cycle through the first three stages of its product life cycle quickly.As the monitor reaches maturity during the second half of its first year in the market,it is good strategy to proceed with _____________,as described above.

A __________ offers a huge selection of one type of product (such as books,toys,or sporting goods) to dominate that category of goods.

Which of the following statements about kiosks and carts is the most accurate?

Brokers are marketing intermediaries that do not take title to the goods they help distribute.

The process of managing the movement of raw materials,parts,work in progress,finished goods,and related information through all of the organizations involved in the supply chain in a timely manner is called multi-modal management.

Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

Which of the following statements about channels of distribution is most accurate?

In a corporate distribution system one firm owns all of the organizations in the distribution.

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:

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) :

Hottaire 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 Hottaire provides its customers with __________ utility.

A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area.

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another,they are providing _________ utility.

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

Telemarketing,catalog sales,and online shopping are all examples of direct marketing.

Water transportation has benefits and drawbacks;for example it is inexpensive but slow.