Exam 15: Distributing Products

Hartselle Home Products, Inc., manufactures a variety of inexpensive household gadgets. The company has decided to cut costs by eliminating all of the marketing intermediaries who help distribute its products. Hartselle will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.

TasteBest Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all of the marketing functions for its products at grocery stores. The grocers like this arrangement because TasteBest provides outstanding marketing support for its products. TasteBest is using a(n) _________ system to distribute its products.

Seasonal goods are kept in storage warehouses.

Suppliers to large retailers like Target and Walmart may soon be required to use RFID tags when shipping products to these companies.

Supply chain management not only deals with the movement of materials, parts, and finished goods, it also manages the return of goods and recycling of materials when appropriate.

The activities performed by most marketing intermediaries are not essential to the marketing process.

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.

Discount stores owe much of their success to a competitive strategy based on:

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

_________ 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.

Specialty stores use a wide variety of products in one product category as their key competitive tool.

Drop shippers are wholesalers that stock heavy or bulky items and transport them to retail stores.

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

Businesses are using ______________ and other ways to track goods and control the flow of goods from point of origin to point of consumption. "Tracking" is an important part of the process of managing the flow of goods, an activity that marketers call _____________.

Millie Woods owns and operates a World of Food grocery store. Although her store is independently owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common name, participate in chain promotions, and cooperate with other stores in the chain. Millie's store is part of a(n):

Childress Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Grunwell Shipping, Inc., to find out what the shipment would cost. Grunwell has shown Childress how a combination of barges, trains, and trucks could be used to complete the shipment at low cost. Grunwell's strategy is an example of intermodal shipping.

When firms manage the return of goods from consumers either because they are defective or for recycling purposes, they are involved in:

Merrill helps growers of fresh fruits and vegetables negotiate sales to food processing companies. However, once he has helped negotiate the transaction, he does not maintain a long-term relationship with the growers. Merrill is an example of a sales agent in this market.

Currently, Halperin Electrical sells directly to thousands of industrial customers. Halperin could reduce the number of exchange relationships by including wholesalers in its channel of distribution.

For a supply chain to be efficient, all of the activities must be performed by organizations that are owned by the manufacturer.