Exam 15: Distributing Products

Direct selling is a distribution strategy that makes extensive use of the Internet and telephone.

Explain why you agree or disagree with the following statement: "Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

Corporate distribution systems consist of several independently owned intermediaries, all of them organized as multinational corporations.

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

In _____________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

Which of the following activities would be most closely associated with inbound logistics?

Because some of its key suppliers have been late with their shipments of materials and parts, Marnex Enterprises has had to shut down its manufacturing plant for several hours twice in the past week. These difficulties indicate that Marnex has done a poor job in managing its inbound logistics.

Which of the following is an example of a consumer making a purchase through a direct marketing arrangement?

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

As long as they do not represent competing products, manufacturer's agents can represent more than one manufacturer in a given sales territory.

Some freight forwarders offer warehousing and customs assistance.

In administered distribution systems, retailers:

Mardelay Industries has discovered a defect in one of its products that may result in injury to users. The company believes it must quickly develop and implement a recall program. It is likely that Mardelay soon will be placing a great deal of emphasis on:

Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.

In a corporate distribution system one firm owns all of the organizations in the distribution.

When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing _________ utility.

Imaginex Toys, Inc., produces toys designed to stimulate the imaginations of young children. In order to control all of the marketing operations, Imaginex owns all of the organizations in the channel of distribution for its toys, including a chain of Imaginex retail stores. The approach taken by Imaginex is known as an administered distribution system.

Limited-function wholesalers are a type of merchant wholesaler.

An increase in energy prices would encourage shippers to rely more on rail transportation.

Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.