Exam 15: Distributing Products

One drawback of kiosks is that their high overhead costs result in low profit margins.

Sherwin Williams owns its manufacturing sites as well as over 3,000 retail stores in North America. Sherwin Williams exemplifies a ___________________.

Compared to rail transportation, one of the advantages of shipping by truck is that trucks:

Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Lazee Ladd, its suppliers, and the marketing intermediaries are all part of a supply chain.

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

__________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

According to the Adapting to Change box, the over 3 million food trucks in operation in the U.S. need to make sure they're up on the latest social media craze so they can reach customers.

Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a:

Rack jobbers sell goods on consignment, splitting the profits from their sales with a retailer.

A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.

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

A firm that wants to distribute its products as widely in a market as possible would use a(n) ___________ distribution strategy.

Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

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.

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 comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n):

Tony works at an auto assembly plant for a U.S. auto manufacturer. He manages a group of employees who measure the quality of parts that arrive on rail cars from Mexico and other countries. As a receiver of auto parts from other suppliers, Tony works in __________________.

The two basic types of warehouses are:

E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The company has more than 170 stores located in large cities throughout the Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes. E-Gadgets is providing its customers with:

About __________ of the costs of things we buy are marketing costs that go to pay for distribution costs of intermediaries.

Which of the following statements about wholesaler-sponsored chains is most accurate? In a wholesaler-sponsored chain all stores: