Exam 15: Distributing Products

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." -The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with:

Larry and Dale Ingram solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies. Larry and Dale operate as drop shippers.

The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.

Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.

_________ utility adds value to goods by having them available where people want them.

A firm that makes wholesale sales cannot also legally make retail sales.

One way that marketers can provide utility is by making sure the good is available at a location that is convenient for consumers.

In today's competitive market environment, traditional retailers will need to put more emphasis on providing form and place utility, and less emphasis on service utility.

Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.

Which of the following statements about kiosks and carts is the most accurate?

Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

Which of the following statements about service utility is most accurate? Service utility is:

Wholesalers may provide market information and business consulting services.

Placing ads in newspapers and having knowledgeable salespeople to answer customers' questions are ways marketing intermediaries can provide:

With the current emphasis on product development, pricing, branding, and promotion, the physical distribution of materials and goods is no longer a major concern of marketing.

There are four specific types of channel systems available to companies that tie firms together in a unified way.

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

Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:

Pipelines are used primarily to transport:

Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Sharp Focus carries out this plan, it is likely to find that: