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Exam 15: Distributing Products

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Question 131

Multiple Choice

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Marketing intermediaries:

A) add value that exceeds the cost of their services.
B) add cost that exceeds the value they provide.
C) increase the number of exchange relationships in the channel.
D) complicate the distribution process.

E) A) and B)
F) B) and D)

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Question 132

True/False

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

A) True
B) False

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Question 133

Multiple Choice

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Suppose that eight bakeries each tried to sell their products directly to seven supermarkets.The total number of exchange relationships that would be established is:

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

Jack Deck is a computer salesperson for a major retail electronics chain.When he advises customers to help them select a computer that will meet their needs,Jack is providing information utility.

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.

In multilevel marketing,salespeople have an incentive to:

Hi! Notes Card Shops has been approached by Novel Teas,a producer of herbal teas and exotic spices.Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system.If Hi! Notes accepts Novel Teas proposal,it will perform many marketing services for the tea maker in exchange for a flat fee.

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.

Millie Woods owns and operates a World of Food grocery store.Although her store is independently owned and operated,she has signed an agreement with over seventy stores in the Midwest to use a common name,participate in chain promotions,and cooperate with other stores in the chain.Millie's store is part of a(n) :

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:

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores,supermarkets,and drug stores.He keeps title to the goods until they are sold and then splits the profits with the retailer.Henry works as a drop shipper.

Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.

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

___________ would probably be distributed using an intensive 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.

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." -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:

Although there have been some unethical firms involved in multilevel marketing,this form of retailing remains quite successful.

Compared to rail transportation,one of the advantages of shipping by truck is that trucks:

The primary difference between retailers and wholesalers is that: