Exam 14: Channels of Distribution

Before choosing a distribution channel for a product, a company should consider:

One of the most difficult jobs for a dentist in making a replacement tooth is to match the color. Solomon Dentifrice Company sells equipment for making replacement teeth. If it refused to sell replacement coloring systems to independent laboratories that had not initially bought their equipment from Solomon Dentifrice, it would be an example of a(n):

Aga Foodservices, makes specialized cooking equipment such as iron cook stoves, bread ovens, dough mixers, pizza ovens, and doughnut-making equipment. In 2003, the manufacturer acquired a New England-based home furnishings retailer in which to sell its products. This acquisition created a(n):

The manufacturers of light bulbs, nail clippers, chewing gum, and sodas would most likely want to use _____ distribution.

_____ is the practice of eliminating middlemen from distribution channels.

Ace Hardware Stores, Domino's pizza restaurants, IGA grocery stores, and 7-Eleven convenience stores are all examples of _____ vertical marketing systems.

McKee Bakery sells a case of Little Debbie oatmeal raisin cookies to Lester & Sons, a wholesale grocer. Lester & Sons then sells the cookies to an IGA supermarket. The IGA supermarket then sells a package of cookies to Andrew. This is an example of _____ distribution.

When International Harvester introduced a baler that would produce a rolled bale of hay six feet in diameter and six feet wide, many farmers wanted to own one. One of the distributors for these balers was in Central Georgia. A customer in middle Tennessee contacted the company and was told that he could not buy from the Georgia Company and must purchase his baler from a local dealer even though the local dealer had none in stock, and the Georgia dealer did. This is an example of a(n):

Each producer should select middlemen offering those marketing services that the producer is either unable to provide or cannot economically perform.

Barbie Collectibles are sold in a number of retail stores, but not by all the stores that would like to carry the product line. Mattel is using _____ distribution for its Barbie lines.

Under a(n) _____, a producer requires each middleman to sell only to customers located within the middleman's assigned territory.

If Corvette tune-up kits by Delco were available only through MidAmerica Designs, Inc., it would be an example of intensive distribution.

In 1989, Seeds of Change started with a simple mission: "To preserve biodiversity and promote sustainable, organic agriculture." With its ever-expanding line of Certified Organic Foods, it has stayed True to its mission. It uses only the freshest, select, organic ingredients. All are great tasting and healthy and just as nature intended. Seeds of Change also seeks out unique ingredients such as quinoa, an ancient and little-known South American grain that is high in protein and a valuable source of many amino acids. By using quinoa, Seeds of Change is helping to preserve a nutritious food that might have otherwise been lost for future generations. In close collaboration with an extensive network of certified organic seed growers and plant breeders, Seeds of Change cultivates, studies, refines, and expands the products it provides to consumers. -Seeds of Change uses a(n) _____ channel of distribution when it sells to consumers through its Web site.

When White House, a company famous for its applesauce, introduced Fruit-in-Juice, a new snack food, it more than likely had to pay a _____ before supermarkets and discount stores would place the product on their shelves.

A manufacturer is likely to use multiple channels of distribution if:

The manufacturer of LifeSavers candy will most likely use _____ distribution.

Channel conflict sometimes stems from a manufacturer's attempts to bypass wholesalers and deal directly with retailers or consumers.

Dobinski's Country Foods manufactures six flavors of corn bread mixes. The mixes are sold to distributors who then sell them to resort gift shops in the Southeastern United States. Visitors to the resorts can leave with a souvenir that tastes great. Dobinski's corn bread mixes are distributed:

Which of the following is an example of an agent middleman?

ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. All of its suppliers have access to a Web site that shows suppliers how they rate in quality, delivery, and management. This Web site could lead to ____ among ArvinMeritor's suppliers.