Question 1

Which of the following statements about Place is true?

Accepted Answer

A)  Most consumer products and most business products are sold to intermediaries who then sell them to final customers. 
B)  Place decisions are usually harder to change than other marketing mix decisions. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E)  None of the above is true. 
A)  Most consumer products and most business products are sold to intermediaries who then sell them to final customers. 
B)  Place decisions are usually harder to change than other marketing mix decisions. 
C)  There is always one Place arrangement that is "best" for a product. 
D)  A series of individuals who aid in the flow of goods and services from producer to final customer is called a distribution network. 
E)  None of the above is true.

Question 2

Which of the following best illustrates adjusting "discrepancies of assortment?"

Accepted Answer

A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 309 million U.S. consumers are served by around 351,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States. 
A)  General Motors makes Hummer for one product-market and Chevrolet for another product-market. 
B)  A hardware store sells all the hardware items wanted by most people. 
C)  Over 309 million U.S. consumers are served by around 351,000 manufacturers. 
D)  RCA sold more than 2,000,000 TVs last year. 
E)  Three firms produce over 60 percent of all the DVD players sold in the United States.

Question 3

Use this information for questions that refer to the World Tennis Ball (WTB) Company case.
World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors.
1) WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributors - each with half the country. The distributors then sell through 6 sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.
-Which tennis ball manufacturer is involved in direct distribution?

Accepted Answer

A)  World Tennis Ball 
B)  American Tennis Ball 
C)  National Tennis Ball 
D)  All of the firms use direct distribution 
E)  None of the firms use direct distribution 
A)  World Tennis Ball 
B)  American Tennis Ball 
C)  National Tennis Ball 
D)  All of the firms use direct distribution 
E)  None of the firms use direct distribution

Question 4

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution.

Accepted Answer

A) True 
 B)False

Question 5

In a licensing agreement, the licensee

Accepted Answer

A)  makes no initial investment to get started. 
B)  does most of the marketing strategy planning for the markets it is licensed to serve. 
C)  has more control over marketing than other approaches for entering international markets. 
D)  assumes almost no risk in a foreign market. 
E)  does not pay any fee or royalties to the licensor. 
A)  makes no initial investment to get started. 
B)  does most of the marketing strategy planning for the markets it is licensed to serve. 
C)  has more control over marketing than other approaches for entering international markets. 
D)  assumes almost no risk in a foreign market. 
E)  does not pay any fee or royalties to the licensor.

Question 6

A disadvantage of direct-to-customer channels is that they

Accepted Answer

A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of the above is a disadvantage. 
A)  are not suitable when the number of transactions is small or when orders are large. 
B)  are illegal in business and organizational markets. 
C)  make it more difficult to serve buyers who want to lease rather than buy products. 
D)  require the producer to coordinate with many retailers. 
E)  None of the above is a disadvantage.

Question 7

Intensive distribution at the retail level would probably be most appropriate for:

Accepted Answer

A)  Sports coats 
B)  Batteries 
C)  10 speed bicycles 
D)  Tennis rackets 
E)  35mm cameras 
A)  Sports coats 
B)  Batteries 
C)  10 speed bicycles 
D)  Tennis rackets 
E)  35mm cameras

Question 8

Which of the following is NOT a likely advantage of vertical integration?

Accepted Answer

A)  Lower capital requirements. 
B)  Lower executive overhead. 
C)  Better control of distribution. 
D)  Better quality control. 
E)  Greater buying power. 
A)  Lower capital requirements. 
B)  Lower executive overhead. 
C)  Better control of distribution. 
D)  Better quality control. 
E)  Greater buying power.

Question 9

A local TV retailer hire hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

Accepted Answer

A)  Horizontal 
B)  Traditional 
C)  Vertical 
D)  Contractual 
E)  Corporate 
A)  Horizontal 
B)  Traditional 
C)  Vertical 
D)  Contractual 
E)  Corporate

Question 10

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

Accepted Answer

A)  contractual 
B)  traditional 
C)  administered 
D)  integrated 
E)  corporate 
A)  contractual 
B)  traditional 
C)  administered 
D)  integrated 
E)  corporate

Question 11

"Discrepancies of quantity" occur because

Accepted Answer

A)  producers seek economies of scale. 
B)  most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. 
C)  adding intermediaries in a channel of distribution increases the cost of getting products to consumers. 
D)  consumers want the convenience of buying many different types of products at one time. 
E)  all of the above. 
A)  producers seek economies of scale. 
B)  most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price. 
C)  adding intermediaries in a channel of distribution increases the cost of getting products to consumers. 
D)  consumers want the convenience of buying many different types of products at one time. 
E)  all of the above.

Question 12

A firm that has a lot of "management know-how," but expects production problems in a foreign market, might be wise to use management contracting.

Accepted Answer

A) True 
 B)False

Question 13

The role of "channel captain":

Accepted Answer

A)  should be taken by producers because they have more power. 
B)  is to force other channel members to accept the channel captain's plan. 
C)  should be taken by retailers because they are closer to consumers. 
D)  may not be necessary if the channel members are satisfied with the "status-quo." 
E)  is to help a channel system compete more effectively with other channel systems. 
A)  should be taken by producers because they have more power. 
B)  is to force other channel members to accept the channel captain's plan. 
C)  should be taken by retailers because they are closer to consumers. 
D)  may not be necessary if the channel members are satisfied with the "status-quo." 
E)  is to help a channel system compete more effectively with other channel systems.

Question 14

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Accepted Answer

A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation. 
A)  assorting. 
B)  sorting. 
C)  wholesaling. 
D)  accumulating. 
E)  allocation.

Question 15

Although some intermediaries may resent this approach, a manufacturer may have to use "multichannel distribution" because:

Accepted Answer

A)  present channel members are doing a poor job. 
B)  the firm desires to reach different target markets. 
C)  big retail chains want to deal directly. 
D)  antitrust regulations prohibit relying on just one channel system. 
E)  both A and C above. 
A)  present channel members are doing a poor job. 
B)  the firm desires to reach different target markets. 
C)  big retail chains want to deal directly. 
D)  antitrust regulations prohibit relying on just one channel system. 
E)  both A and C above.

Question 16

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Accepted Answer

A) True 
 B)False

Question 17

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

Accepted Answer

A) True 
 B)False

Question 18

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

Accepted Answer

A)  Place orders that are too small. 
B)  Make too many returns. 
C)  Request too much service. 
D)  Have poor credit. 
E)  All of the above. 
A)  Place orders that are too small. 
B)  Make too many returns. 
C)  Request too much service. 
D)  Have poor credit. 
E)  All of the above.

Question 19

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Accepted Answer

A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal 
A)  Direct 
B)  Indirect 
C)  Cooperative 
D)  Layered 
E)  Horizontal

Question 20

Selling through only one wholesaler or retailer in a particular geographic area is called:

Accepted Answer

A)  Ideal market distribution 
B)  Intensive distribution 
C)  Selective distribution 
D)  Exclusive distribution 
E)  Equivalent distribution 
A)  Ideal market distribution 
B)  Intensive distribution 
C)  Selective distribution 
D)  Exclusive distribution 
E)  Equivalent distribution

Exam 11: Place and Development of Channel Systems

Which of the following statements about Place is true?

Which of the following best illustrates adjusting "discrepancies of assortment?"

Firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution.

In a licensing agreement, the licensee

A disadvantage of direct-to-customer channels is that they

Intensive distribution at the retail level would probably be most appropriate for:

Which of the following is NOT a likely advantage of vertical integration?

A local TV retailer hire hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

"Discrepancies of quantity" occur because

A firm that has a lot of "management know-how," but expects production problems in a foreign market, might be wise to use management contracting.

The role of "channel captain":

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:

Although some intermediaries may resent this approach, a manufacturer may have to use "multichannel distribution" because:

Discrepancy of quantity means the difference between the lines a typical producer makes and the assortment final consumers want.

Firms that cooperate to build vertical marketing systems typically share a longer-term commitment.

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

Selling through only one wholesaler or retailer in a particular geographic area is called:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

Filters