Exam 15: Distributing Products

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 suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n)

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

Some freight forwarders offer warehousing and customs assistance.

Mall owners like to have ________ located along the walkways of their malls, because they create a marketplace type of atmosphere.

In multilevel marketing, independent contractors who sell a product can increase their own incomes by recruiting ________ to also sell the product.

Compared to railroads and trucks, the biggest advantage offered by air transport is that it is

________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

________ brings raw materials, packaging, other goods and services, and information from suppliers to producers.

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.

The types of utility commonly provided by marketing intermediaries include

Though vending machines can sell just about anything, they are most often used to sell

Warehouse clubs are usually smaller than supermarkets.

The most expensive mode of transportation is

A(n) ________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.

Which of the following statements identifies a key advantage of direct marketing?

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

Devar was driving on Interstate 95 in eastern Florida when he noticed he was running low on gas. Devar was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.

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

Jordan is working to find ways to better her company's movement of materials and goods from the warehouse to the factory floor. Jordan is looking into ways of making her firm's ________ more efficient.

Marketing intermediaries