Question 1

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

Accepted Answer

A)  directed marketers. 
B)  distributive specialists. 
C)  marketing intermediaries. 
D)  supplementary marketers. 
A)  directed marketers. 
B)  distributive specialists. 
C)  marketing intermediaries. 
D)  supplementary marketers.

Question 2

Telemarketing is the sale of goods and services by telephone.

Accepted Answer

A) True 
 B)False

Question 3

In multilevel marketing,salespeople not only sell the product,they also recruit other people to sell the product.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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."
-After listening to all of the challenges and issues,Rhea said she wanted to propose a more sweeping change."Mark has already suggested doing some of the retailer's job for them.I say go even further-let's just do away with all of the intermediaries.We can perform all of their functions ourselves," she said.She went on to explain that,"Since we won't have to deal with intermediaries,my suggestion is bound to simplify the distribution process and cut costs dramatically." Rhea's suggestion:

Accepted Answer

A)  is truly radical because it calls for the elimination of the entire supply chain. 
B)  is an example of an administered and contractual distribution system. 
C)  should be viewed with some skepticism,because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process. 
D)  is not really very radical,since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution. 
A)  is truly radical because it calls for the elimination of the entire supply chain. 
B)  is an example of an administered and contractual distribution system. 
C)  should be viewed with some skepticism,because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process. 
D)  is not really very radical,since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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."
-Currently,Lite Bite uses a lot of intermediaries to help distribute its products.Collectively,the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the:

Accepted Answer

A)  marketing mix. 
B)  franchise system. 
C)  channel of distribution. 
D)  marketing network. 
A)  marketing mix. 
B)  franchise system. 
C)  channel of distribution. 
D)  marketing network.

Question 9

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Railroads are an energy-efficient mode of transporting many types of goods.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

Accepted Answer

A)  enables sales people to close a non-refundable sale in the customer's home or place of work. 
B)  allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries. 
C)  is popular with consumers because it is so convenient to shop from home or work. 
D)  creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage. 
A)  enables sales people to close a non-refundable sale in the customer's home or place of work. 
B)  allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries. 
C)  is popular with consumers because it is so convenient to shop from home or work. 
D)  creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.

Question 13

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

Accepted Answer

A)  becoming less important to retailers in this age of self-service marketing. 
B)  the one type of utility that online firms provide more efficiently than traditional retailers. 
C)  more likely to be provided by wholesalers than by retailers. 
D)  becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing. 
A)  becoming less important to retailers in this age of self-service marketing. 
B)  the one type of utility that online firms provide more efficiently than traditional retailers. 
C)  more likely to be provided by wholesalers than by retailers. 
D)  becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

Question 14

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

Accepted Answer

A)  drop shippers. 
B)  truck jobbers. 
C)  channel captains. 
D)  merchandise agents. 
A)  drop shippers. 
B)  truck jobbers. 
C)  channel captains. 
D)  merchandise agents.

Question 15

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.

Accepted Answer

A)  corporate distribution 
B)  franchise 
C)  retail cooperative distribution 
D)  administered distribution 
A)  corporate distribution 
B)  franchise 
C)  retail cooperative distribution 
D)  administered distribution

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores,supermarkets,and drug stores.He keeps title to the goods until they are sold and then splits the profits with the retailer.Henry works as a drop shipper.

Accepted Answer

A) True 
 B)False

Question 18

Stores that remain open 24 hours a day,seven days a week are providing _________ utility to their customers.

Accepted Answer

A)  possession 
B)  time 
C)  service 
D)  schedule 
A)  possession 
B)  time 
C)  service 
D)  schedule

Question 19

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

Accepted Answer

A)  possession 
B)  information 
C)  form 
D)  promotion 
A)  possession 
B)  information 
C)  form 
D)  promotion

Question 20

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

Accepted Answer

A) True 
 B)False

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

Telemarketing is the sale of goods and services by telephone.

In multilevel marketing,salespeople not only sell the product,they also recruit other people to sell the product.

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.

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

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

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

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

Railroads are an energy-efficient mode of transporting many types of goods.

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

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

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

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.

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores,supermarkets,and drug stores.He keeps title to the goods until they are sold and then splits the profits with the retailer.Henry works as a drop shipper.

Stores that remain open 24 hours a day,seven days a week are providing _________ utility to their customers.

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

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

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix A: Using Technology to Manage Information

Appendix B: Managing Risk

Filters

Exam 15: Distributing Products

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

Telemarketing is the sale of goods and services by telephone.

In multilevel marketing,salespeople not only sell the product,they also recruit other people to sell the product.

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.

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

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

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

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

Railroads are an energy-efficient mode of transporting many types of goods.

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

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

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

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.

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores,supermarkets,and drug stores.He keeps title to the goods until they are sold and then splits the profits with the retailer.Henry works as a drop shipper.

Stores that remain open 24 hours a day,seven days a week are providing _________ utility to their customers.

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

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

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix A: Using Technology to Manage Information

Appendix B: Managing Risk

Filters