Question 1

"Intensive distribution" means selling through:

Accepted Answer

A)  only one channel of distribution. 
B)  all responsible and suitable retailers or wholesalers. 
C)  only one intermediary in a particular geographic area. 
D)  only those intermediaries who give the product special attention. 
E)  all retail outlets. 
A)  only one channel of distribution. 
B)  all responsible and suitable retailers or wholesalers. 
C)  only one intermediary in a particular geographic area. 
D)  only those intermediaries who give the product special attention. 
E)  all retail outlets.

Question 2

Exporting is often the first step into international marketing.

Accepted Answer

A) True 
 B)False

Question 3

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Accepted Answer

A) True 
 B)False

Question 4

Use this information for question 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 5

Place is concerned with the selection and use of marketing specialists--intermediaries and collaborators--and making goods and services available in the right quantities and locations when customers want them.

Accepted Answer

A) True 
 B)False

Question 6

Selective distribution:

Accepted Answer

A)  is likely to reduce high administrative expenses caused by a large proportion of small orders. 
B)  may be suitable for all categories of products. 
C)  is becoming more popular. 
D)  is a good idea if some of the available intermediaries are not financially solid. 
E)  All of these alternatives are correct. 
A)  is likely to reduce high administrative expenses caused by a large proportion of small orders. 
B)  may be suitable for all categories of products. 
C)  is becoming more popular. 
D)  is a good idea if some of the available intermediaries are not financially solid. 
E)  All of these alternatives are correct.

Question 7

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about ideal market exposure is TRUE?

Accepted Answer

A)  As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers. 
B)  A producer usually should seek maximum market exposure. 
C)  Intensive distribution means trying to sell through all retail stores. 
D)  It is necessary to get almost 100 percent market exposure to justify national promotion. 
E)  All of these statements about ideal market exposure are true. 
A)  As a firm goes from exclusive to intensive distribution, it loses progressively more control over price and service offered by retailers. 
B)  A producer usually should seek maximum market exposure. 
C)  Intensive distribution means trying to sell through all retail stores. 
D)  It is necessary to get almost 100 percent market exposure to justify national promotion. 
E)  All of these statements about ideal market exposure are true.

Question 9

Selling direct-to-customer is more common with business products than consumer products.

Accepted Answer

A) True 
 B)False

Question 10

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Accepted Answer

A) True 
 B)False

Question 11

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

Accepted Answer

A)  traditional channel 
B)  vertically integrated 
C)  direct-to-customer channel 
D)  franchising 
E)  administered channel 
A)  traditional channel 
B)  vertically integrated 
C)  direct-to-customer channel 
D)  franchising 
E)  administered channel

Question 12

Multichannel distribution:

Accepted Answer

A)  May involve using both direct and indirect channels simultaneously. 
B)  May offer producers a way to reach customers they would not be able to reach with a single channel. 
C)  Is becoming more common. 
D)  May create channel conflict. 
E)  All of these alternatives are correct. 
A)  May involve using both direct and indirect channels simultaneously. 
B)  May offer producers a way to reach customers they would not be able to reach with a single channel. 
C)  Is becoming more common. 
D)  May create channel conflict. 
E)  All of these alternatives are correct.

Question 13

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

Question 14

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs, but not exceed them.

Accepted Answer

A) True 
 B)False

Question 15

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Accepted Answer

A)  Selective distribution 
B)  Multichannel distribution 
C)  Exclusive distribution 
D)  Intensive distribution 
E)  Aggressive distribution 
A)  Selective distribution 
B)  Multichannel distribution 
C)  Exclusive distribution 
D)  Intensive distribution 
E)  Aggressive distribution

Question 16

Discrepancy of quantity is

Accepted Answer

A)  the difference between the lines a typical producer makes and the assortment final consumers or users want. 
B)  adjusting the quantities of products handled at each level in a channel of distribution. 
C)  collecting products from many small producers. 
D)  the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want. 
E)  usually seen with producers who specialize by product. 
A)  the difference between the lines a typical producer makes and the assortment final consumers or users want. 
B)  adjusting the quantities of products handled at each level in a channel of distribution. 
C)  collecting products from many small producers. 
D)  the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want. 
E)  usually seen with producers who specialize by product.

Question 17

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

Accepted Answer

A)  Discrepancy of assortment 
B)  Discrepancy of quality 
C)  Discrepancy of image 
D)  Discrepancy of variety 
E)  Discrepancy of quantity 
A)  Discrepancy of assortment 
B)  Discrepancy of quality 
C)  Discrepancy of image 
D)  Discrepancy of variety 
E)  Discrepancy of quantity

Question 18

Which of the following is true of selective distribution?

Accepted Answer

A)  It is commonly needed for convenience products and business supplies used by all offices. 
B)  It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  It is selling through only one intermediary in a particular geographic area. 
D)  It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  It is selling through only those intermediaries who will give the product special attention. 
A)  It is commonly needed for convenience products and business supplies used by all offices. 
B)  It is selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. 
C)  It is selling through only one intermediary in a particular geographic area. 
D)  It is making a product available widely enough to satisfy target customers' needs but not exceed them. 
E)  It is selling through only those intermediaries who will give the product special attention.

Question 19

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is MOST likely selling the rights to use its:

Accepted Answer

A)  production facilities. 
B)  brand name. 
C)  channels of distribution. 
D)  sales force. 
E)  Any of these are equally likely. 
A)  production facilities. 
B)  brand name. 
C)  channels of distribution. 
D)  sales force. 
E)  Any of these are equally likely.

Question 20

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Accepted Answer

A)  Corporate 
B)  Traditional 
C)  Administered 
D)  Contractual 
E)  Technical 
A)  Corporate 
B)  Traditional 
C)  Administered 
D)  Contractual 
E)  Technical

"Intensive distribution" means selling through:

Exporting is often the first step into international marketing.

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Place is concerned with the selection and use of marketing specialists--intermediaries and collaborators--and making goods and services available in the right quantities and locations when customers want them.

Selective distribution:

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Which of the following statements about ideal market exposure is TRUE?

Selling direct-to-customer is more common with business products than consumer products.

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

Multichannel distribution:

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

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs, but not exceed them.

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Discrepancy of quantity is

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

Which of the following is true of selective distribution?

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is MOST likely selling the rights to use its:

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Marketing39s Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

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

Economics Fundamentals

Marketing Arithmetic

Filters

Exam 10: Place and Development of Channel Systems

"Intensive distribution" means selling through:

Exporting is often the first step into international marketing.

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Place is concerned with the selection and use of marketing specialists--intermediaries and collaborators--and making goods and services available in the right quantities and locations when customers want them.

Selective distribution:

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Which of the following statements about ideal market exposure is TRUE?

Selling direct-to-customer is more common with business products than consumer products.

When a warehouse is rearranged to speed up order processing, "regrouping activities" are being performed.

Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

Multichannel distribution:

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

"Ideal market exposure" should make a product widely enough available to satisfy target customers' needs, but not exceed them.

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Discrepancy of quantity is

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

Which of the following is true of selective distribution?

A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is MOST likely selling the rights to use its:

A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

Marketing39s Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

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

Economics Fundamentals

Marketing Arithmetic

Filters