Exam 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

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Intensive distribution, selective distribution, and exclusive distribution are the three key strategic distribution strategies that retailers use.

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Vendor­managed inventory strategies allow suppliers to determine their buyers' needs and automatically ship supplies as needed.

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A firm's distribution strategy is concerned with two key elements:

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Marcy owns the company Caps for Kids and sells her hand­knitted caps for $20 each. The variable cost per cap created is $10, and fixed costs are $10,000. What is Marcy's breakeven point?

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Explain how distributors deliver value to consumers by providing different types of utility. Include examples to support your response.

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_____ costs remain constant regardless of the rate of production in a given time period.

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As a manufacturer of low­cost, chocolate­covered peanuts, Venus Candies places its products in as many locations as possible in order to make it easy for customers to purchase the product. Venus Candies is employing _____ distribution.

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Sportos Golf sells only golf­related goods, and it offers a huge selection of clubs, golf bags, and accessories. It has become the dominant seller of golf equipment in many cities. Sportos Golf is a:

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Glen's macaroons are a popular item priced at $3.50 per item. Variable costs are $1.50 per macaroon. With fixed costs at $20,000 per year, Glen's will realize its breakeven point at _____ macaroons.

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Rimecpernestlsye,d S bael cGaurasses oth pe ucracrh daesaelde ra nd eelxivpeernesdiv teh eE cuaror ptoe ahni sa hutooumseo abnilde .o Hffee rweda sto pick up the vehicle every four months so it can be regularly serviced at the dealership. While Sal's car is being serviced, he will be able to use a loaner car from the dealership at no additional charge. This is an example of a business providing service utility.

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CDz, a local music and video store, consistently offers music CDs and movie DVDs at a lower price than its competitors. The pricing tactic that CDz uses is:

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Sperondduincge rpsr. oducts by _____ is the least expensive option available to

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Breakeven analysis determines the level of sales at which the business will earn enough revenue to cover all of its costs.

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Victoria's Secret and AutoZone are examples of specialty stores.

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One thing that a one­minute photo booth, a drive­through at a fast­food restaurant, and a vending machine all have in common is that they:

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Gregory works for Market4Me, a food supplier. His main responsibility is to make tactical decisions involving the actual movement of goods along his company's supply chain. Gregory is involved in:

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Identify the main types of wholesalers, and describe the functions they perform.

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Providers of luxury goods, who establish one retail outlet in a given area, are utilizing a(n) _____ distribution strategy.

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Variable costs for a pizza parlor would include the cost of the insurance, rent, and property taxes.

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Marketers normally have nearly complete control over how their products are priced.

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