Question 1

Taken together,all of the organizations that move goods from the sources of raw materials to ultimate consumers is known as a:

Accepted Answer

A) multifunction network. 
B) supply chain. 
C) critical distribution path. 
D) marketing priority network. 
A) multifunction network. 
B) supply chain. 
C) critical distribution path. 
D) marketing priority network.

Question 2

Corinne is a marketing manager who specializes in logistical problems.In her position,Corrine is likely to focus mainly on managing the flow of goods,and leave issues about how to manage the flow of information to managers in other areas of marketing.

Accepted Answer

A) True 
 B)False

Question 3

Comstock Coal Distributors does not mine coal itself.In fact,the firm does not even store or handle coal.Instead,Comstock solicits orders for low sulfur coal from other firms,then purchases the required amount from suppliers and directs them to ship the coal to its customers.Comstock is a:

Accepted Answer

A) drop shipper. 
B) resource delivery facilitator. 
C) cash-and-carry wholesaler. 
D) limited distribution broker. 
A) drop shipper. 
B) resource delivery facilitator. 
C) cash-and-carry wholesaler. 
D) limited distribution broker.

Question 4

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) Freight forwarding 
B) Inbound logistics 
C) Materials handling 
D) Supply side logistics 
A) Freight forwarding 
B) Inbound logistics 
C) Materials handling 
D) Supply side logistics

Question 6

Marketing intermediaries must charge a price for the functions they perform.Thus,a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

Accepted Answer

A) True 
 B)False

Question 7

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

Accepted Answer

A) True 
 B)False

Question 8

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."
-After listening to all of the challenges and issues,Rhea said she wanted to propose a more sweeping change."Mark has already suggested doing some of the retailer's job for them.I say go even further-let's just do away with all of the intermediaries.We can perform all of their functions ourselves," she said.She went on to explain that,"Since we won't have to deal with intermediaries,my suggestion is bound to simplify the distribution process and cut costs dramatically." Rhea's suggestion:

Accepted Answer

A) is truly radical because it calls for the elimination of the entire supply chain. 
B) is an example of an administered and contractual distribution system. 
C) should be viewed with some skepticism,because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process. 
D) is not really very radical,since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution. 
A) is truly radical because it calls for the elimination of the entire supply chain. 
B) is an example of an administered and contractual distribution system. 
C) should be viewed with some skepticism,because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process. 
D) is not really very radical,since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.

Question 9

__________ utility is usually provided by producers rather than marketers.

Accepted Answer

A) Possession 
B) Time 
C) Place 
D) Form 
A) Possession 
B) Time 
C) Place 
D) Form

Question 10

Manufacturers are usually able to perform marketing functions such as transporting,advertising,and storing,faster and more cheaply than marketing intermediaries.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

__________ warehouses are used to gather and redistribute products.

Accepted Answer

A) Storage 
B) Distribution 
C) Wholesale 
D) Merchandising 
A) Storage 
B) Distribution 
C) Wholesale 
D) Merchandising

Question 13

Retailers such as jewelry stores,shoe stores,and bicycle shops are:

Accepted Answer

A) department stores. 
B) discount stores. 
C) warehouse clubs. 
D) specialty stores. 
A) department stores. 
B) discount stores. 
C) warehouse clubs. 
D) specialty stores.

Question 14

Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Materials handling is that part of logistics that deals with moving goods within the warehouse,from the warehouse to the production floor,and to various work stations along the production process.

Accepted Answer

A) True 
 B)False

Question 17

The Newsville City Press is a daily newspaper serving a city with a population of just over 200,000.The publishers have placed vending machines for their paper throughout Newsville and its suburbs.They also sell their papers at most of the supermarkets,convenience stores,bookstores,and drug stores in the area.The Newsville City Press uses an intensive distribution strategy.

Accepted Answer

A) True 
 B)False

Question 18

The types of utility commonly provided by marketing intermediaries include:

Accepted Answer

A) product,price,place,and promotion. 
B) time,place,possession,information,and service. 
C) retailing,wholesaling,brokering,and financing. 
D) cost,value,flexibility,use,and resale. 
A) product,price,place,and promotion. 
B) time,place,possession,information,and service. 
C) retailing,wholesaling,brokering,and financing. 
D) cost,value,flexibility,use,and resale.

Question 19

Marketing intermediaries concentrate on providing mainly form,time and place utility,while producers focus on the provision of possession,information,and service utility.

Accepted Answer

A) True 
 B)False

Question 20

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

Accepted Answer

A) brokers 
B) rack jobbers 
C) wholesalers 
D) sales discounters 
A) brokers 
B) rack jobbers 
C) wholesalers 
D) sales discounters

Exam 15: Distributing Products

Taken together,all of the organizations that move goods from the sources of raw materials to ultimate consumers is known as a:

Corinne is a marketing manager who specializes in logistical problems.In her position,Corrine is likely to focus mainly on managing the flow of goods,and leave issues about how to manage the flow of information to managers in other areas of marketing.

Comstock Coal Distributors does not mine coal itself.In fact,the firm does not even store or handle coal.Instead,Comstock solicits orders for low sulfur coal from other firms,then purchases the required amount from suppliers and directs them to ship the coal to its customers.Comstock is a:

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

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

Marketing intermediaries must charge a price for the functions they perform.Thus,a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.

__________ utility is usually provided by producers rather than marketers.

Manufacturers are usually able to perform marketing functions such as transporting,advertising,and storing,faster and more cheaply than marketing intermediaries.

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

__________ warehouses are used to gather and redistribute products.

Retailers such as jewelry stores,shoe stores,and bicycle shops are:

Marketing costs make up less than 25 percent of the total cost of the goods consumers buy.

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

Materials handling is that part of logistics that deals with moving goods within the warehouse,from the warehouse to the production floor,and to various work stations along the production process.

The types of utility commonly provided by marketing intermediaries include:

Marketing intermediaries concentrate on providing mainly form,time and place utility,while producers focus on the provision of possession,information,and service utility.

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

Bonus A: Using Technology to Manage Information

Bonus B: Managing Risk

Bonus C: Managing Your Personal Finances

Appendix: Working Within the Legal Environment

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