Exam 15: Distributing Products

________ manages the movement of raw materials, parts, work in progress, finished goods, and related information throughout the supply chain, as well as managing the return of goods when necessary and the recycling of goods when appropriate.

Marketing managers at Focal Point Cameras are looking for ways to cut costs as the company is facing intense competitive pressure. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Focal Point does this, it is likely to find that

The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

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

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." -The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with

Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.

________ means selling goods and services to ultimate consumers over the Internet.

Railroads are an energy-efficient mode of transporting many types of goods.

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

According to the box, Online Grocery Shopping, what is Amazon's greatest challenge when it comes to competing against companies offering curbside pickup for online grocery orders at Walmart and Kroger?

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

Once the final customer has taken title to a good, marketing intermediaries no longer are involved in providing utility to the customer.

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

The two basic types of warehouses are

Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

Pipelines are used primarily to transport water, petroleum, and petroleum products.

Retailers are marketing intermediaries who sell to ultimate consumers.

A(n) ________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

Limited-function wholesalers are a type of merchant wholesaler.

Retailers who have stores at convenient locations are trying to add value by