Exam 15: Distributing Products

One way a store selling high-def televisions might add ________ utility is to provide convenient delivery and setup to customers.

At Stockman's Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

Words 4 Hire is a nationwide chain of stores that offers such a huge selection of paperback and hardback books at such competitive prices that small local bookstores have a hard time competing with them. Words 4 Hire is best classified as a discount store.

Frank Crimmins was driving on Interstate 85 in eastern Alabama when he noticed he was running low on gas. Frank was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.

Hi! Notes Card Shops has been approached by Novel Teas, a producer of herbal teas and exotic spices. Novel Teas wants to sell its products in the Hi! Notes stores under an administered distribution system. If Hi! Notes accepts Novel Teas proposal, it will perform many marketing services for the tea maker in exchange for a flat fee.

Some marketing intermediaries make both wholesale and retail sales.

Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.

One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:

Pipelines move liquid products very efficiently and can even move products like coal.

The types of utility commonly provided by marketing intermediaries include:

The sale of goods to a business purchasing the items for resale is a wholesale transaction.

Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.

A __________ is a marketing intermediary that sells to ultimate consumers.

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 suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n):

Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.

Social commerce is a form of electronic commerce that involves social media.

A _________ is a marketing intermediary that sells products to other organizations.

Candy, gum, cigarettes, and popular magazines are usually distributed using a selective distribution strategy.