Deck 9: Place Decisions and Customer Convenience

Question 1

The total set of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers is the definition of "place" in the marketing mix.

Answer 1

False

Question 2

If a store advertises it has "wholesale prices," it cannot sell to the final consumers of a product.

Answer 2

False

Question 3

While some stores urge you to "eliminate the middleman" in transactions, significant value can be lost when manufacturers move to more direct marketing channels.

Answer 3

True

Question 4

Brian took a job at a wholesaler, thinking only of the way wholesalers make products available to retailers. What he will realize when he starts working is that there is a flow moving in the opposite direction of money and valuable information, such as complaints.

Question 5

Jim's firm had worked for several years to get producers, retailed and wholesalers working together. This system, which proved beneficial to all, is known as a vertical marketing system.

Question 6

The level of availability for the product or service is referred to as

A) intensive distribution.
B) distribution intensity.
C) exclusive distribution.
D) selective distribution.

Question 7

When producers utilize____________, they place their brands in as many, but not all, outlets as possible.

A) exclusive distribution
B) selective distribution
C) intensive distribution
D) distribution intensity

Question 8

Retailer ______________ is the ability of a retailer to attract consumers in a producer's target market or markets.

A) type
B) image
C) reach
D) fit

Question 9

____________ are very large retail stores that specialize in selling large volumes of merchandise at low prices.

A) Discount stores
B) Mass merchandisers
C) Department store
D) Specialty stores

Question 10

The major sources of conflict in supply chains are the differing goals, differing ideas of who should be responsible for what, and

A) geographic exclusivity.
B) who sets prices.
C) how target markets are seen.
D) brand image differences.

Question 11

Which of the following is NOT one of the potential sources of conflict in supply chains?

A) How much shelf space can be allocated to a manufacturer's products
B) When products will be delivered
C) When payments will be made
D) Which sales associates will oversee reordering and stocking issues

Question 12

In which sort of vertical marketing system does a manufacturer exert the most control?

A) Corporate VMS
B) Administered VMS
C) Contractual VMS
D) Integrated VMS

Question 13

Before the emergence of strong retailers, manufacturers traditionally had more power in supply chains based on the power of the brands they had built.

Question 14

Because of the differences between selling activities in physical stores and online retailers, different kinds of conflicts arise when power is exerted in the supply chains of the two.

Question 15

Relationships among members of the supply chain are sought by the each of the members of the supply chain for that individual's benefit as well as the each of the other participants.

Question 16

Marketers need to focus on the ultimate customer. They realize that retail supply chains are significant, but these concerns are more tactical than strategic.

Question 17

If a marketer develops a strong brand, it will be easier to use impersonal approaches such as online sales or catalogues.

Question 18

Once a marketer has designed a retail supply change and then set everything in motion, the remaining task is to monitor the results to ensure the strategy and the design are working.

Question 19

Retailers will go through detailed planning to determine the atmosphere, lighting, staffing, layout and many other variables, but they are at the mercy of manufacturers who can dictate what kinds of merchandise will be cared in what stores.

Question 20

Which of the following is NOT one of the many elements of an industrial supply chain?

A) Farmers
B) Components manufacturers
C) Retailers
D) Miners

Question 21

Heather was a marketing intern in a large manufacturing firm, and she was attending a meeting to examine how to streamline entire process of getting raw materials to the firm and the finished goods to market. Several of the other participants were talking about "marketing intermediaries," and she was not clear who or what these are. Who are the "marketing intermediaries" that were the focus of this discussion?

A) Transportation firms bringing materials to the firm
B) Sales agents used by the firm's suppliers
C) Wholesalers and retailers
D) Marketing and advertising agencies retained by the firm

Question 22

Paul and Marcus were planning the launch of a new product line for their firm, and they both got enthusiastic about breaking out of the traditional selling they had been doing using wholesalers to sell directly to the consumers using their website. They had checked with everyone associated with the operations of the website, it was relatively easy to do. They needed to get approval from the CMO because the company would be taking on the new role of

A) marketing intermediary.
B) direct retailer.
C) wholesaler disintermediation.
D) supply chain manager.

Question 23

Sarah was always looking for bargains, and she was talking about the number of refurbished and reconditioned electronics on companies' website. Her friend Alexis, a marketing major, explained to her that this was one of the results of the growth of which process?

A) Recycling
B) Reverse supply chains
C) Profit maximization
D) Product-life extensions

Question 24

Which of the following is NOT one of the ways retailers help get products to the customers?

A) Retailers increase the variety of choices available to the consumer.
B) Retailers provide efficiency and effectiveness to keep products at or below the "manufacturer's suggested retail price."
C) Retailers provide moving, sorting and handling goods as they become specialists in this area.
D) Retailers reduce the number of transactions for manufacturers.

Question 25

Dawn's marketing director urged her to give special attention to several of the retailers buying her firm's product. He even suggested they might take some short-term losses if necessary. Why would the marketing director decide to do this?

A) He was concerned that if the firm were seen as being too strict or too firm, it might be seen as unethical.
B) He felt that if the retailers do well, it will benefit Dawn's firm in the long run.
C) He was concerned that damaging the retailers might lead to lawsuits from them.
D) He knew that if he drove even a few of the firms to bankruptcy, his firm would end up losing money.

Question 26

Manufacturers can stimulate demand for their products by creating promotions with the understanding that

A) retailers will pass on some of the price savings to customers.
B) competitors cannot match the promotion.
C) these promotions may indicate to others in the supply chain a change in the firm's objectives.
D) strategies aren't working, and tactics are required.

Question 27

A firm is producing luxury desk sets-letter openers, pencil cups, etc. They are beautifully made, and they are made of rare and expensive materials. When the firm is developing its Place strategies in the marketing mix, what kind of distribution intensity would the firm select for these products?

A) Intensive
B) Selective
C) Premium
D) Exclusive

Question 28

Megan's firm is launching a new line of hair-care products which are not expensive, but a certainly higher quality than the less-expensive products dominating the market. What kind of distribution intensity should she select for these new products?

A) Intensive
B) Professional
C) Selective
D) Exclusive

Question 29

When you feel you just have to have a piece of chewing gum, you know there will be a vending machine or many different kinds of stores where you can get a pack of gum quickly and without much thought. The chewing gum company selected an intensive distribution strategy because

A) they want a consistent brand image of a product anyone can afford.
B) they want to be in as many locations as possible to close out as many competitors as possible.
C) they know margins will be low, and they look for locations that will not be expensive in which to place the product.
D) they recognize this is the industry standard practice, and they see no reason to depart from it.

Question 30

Jordan had been working diligently to gather as much information as possible about the stores where his firm might put their new line of sports apparel. He was trying to assemble all the criteria he could think of to test each of the stores, but he was feeling more confused than he had been at the beginning. When he was explaining his frustration to Sam over coffee, Sam said, "You're going at the this the wrong way. There's only one question you need to answer." What is that one question?

A) Which store's margins are the most attractive?
B) Which store will carry the merchandise without having to pay an allowance?
C) Does the brand belong in a particular retail store?
D) Which store is not already carrying the competitor's products?

Question 31

Marketers are concerned with the concept of retail fit, trying to answer the question about which store would be best for customers. Which of the following is NOT one of the dimensions of retail fit?

A) Retailer reach
B) Retailer sustainability
C) Retailer type
D) Retailer image

Question 32

Crystal saw a new brand of salsa being promoted online, and it was getting great reviews. She couldn't find it anywhere in her area, so she began a campaign using social media to convince grocery retailers to start carrying this new brand. This is an example of what kind of retail strategy?

A) Word of mouth strategy
B) Pull strategy
C) Push strategy
D) Social-media action strategy

Question 33

Paula's firm was relaunching a line of yard tools and an argument broke out in the marketing department. The veterans wanted to focus on lawn care centers, nurseries and selected hardware stores. On the other hand, the younger marketers wanted to emphasize an online push. Paula stepped in and asked what kind of research was available that discussed the balance between online and retail brick and mortar stores. Both groups came back with the same answer

A) About a third of retail sales are online.
B) More than three-quarters of retail sales were made online.
C) Within the last few years, the retails sales for online and physical stores were about the same.
D) The overwhelming majority of sales occur in physical stores.

Question 34

When Stephen began working at a children's apparel company, he had very firm opinions about specific retailers, including setting his own rules about where he would shop. As he worked, he found he actually enjoyed meeting and working with counterparts in these retailers, which caused him to soften his opinions. This reflect which fundamental element of supply chain relationships.

A) A person should not bring his or her personal opinions into work.
B) Business relationships are developed by people not companies.
C) A person should not be judgmental about people he or she works with.
D) Conflicts arise because of preconceived ideas.

Question 35

Liz was observing how her company dealt with specific retailers. With some, she noticed threats were common and issues were often determined by the party with the most resources-one or the other firm was coerced into acting in some way. In others, the nature of the relationships, even in issues of power, were handled, and it rarely came down to force. The kind of power seen in the latter relationships is known as

A) expert power.
B) referent power.
C) reward power.
D) contained power.

Question 36

Many companies that have been around for a few decades will observe how the way they interact with their own buyers and sellers has changed from adversarial, price focused transactions to a fundamentally different kind of system characterized by more trust, lower costs and more flexibility. This more modern approach is known as

A) supply chain management.
B) agile marketing.
C) relationship marketing.
D) egalitarian management.

Question 37

Which of the following would be characterized as a discrete transaction?

A) Selling lingerie to a small retail clothing store
B) Setting up a arrangement where administrative assistants in a company can order office supplies using their own discretion
C) A small number of vendors were asked to submit confidential bids to refurbish the Vice President's office
D) A restaurant running out of butter one night and sending someone to the local grocery store

Question 38

Lucas worked for an old-school business owner. When Lucas presented the idea of building relational exchanges with key vendor and buyers, the owner was skeptical at best. He told Lucas, "I'm not at all interested in having people feel good about business. It's not a party." Lucas then told him it could increase profits, and the owner took a new interest. Which of the following is NOT a way Lucas could demonstrate that relational exchanges would increase profits?

A) Lucas's firm could get the lowest price on the key materials they needed.
B) Lucas's firm could lower inventory costs with longer-term contracts with flexible deliveries.
C) Lucas's firm could reduce purchasing costs through fewer searches and negotiations.
D) Lucas's firm would not have to spend as much to test and examine in-bound materials.

Question 39

What happens in an administered vertical marketing system when different levels of power between two parties is significant?

A) Companies may be dependent on each other, but the benefits are not equally distributed.
B) Regardless of the safeguard established in the design of the system, the strong party can essentially do what it wants to do.
C) Within a short period of time the administered VMS will evolve into a corporate VMS.
D) The weaker party can protect itself with a franchise agreement.

Question 40

_______________ are the core of place decision as the concept encompasses a broader array of ideas than simply moving goods from producer to consumer.

A) Supply chains
B) Consumers
C) Wholesalers
D) Reverse Supply Chains

Question 41

Supply chains as the total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to _____________.

A) wholesalers
B) consumers
C) retailers
D) supply chain managers

Question 42

Merchandise sometimes flows backwards from consumer to producer. This is known as a(n)

A) supply chain.
B) industrial supply chain.
C) retail supply chain.
D) reverse supply chain.

Question 43

Producers sometimes use ______________by placing their product in few outlets.

A) exclusive distribution
B) distribution intensity
C) selective distribution
D) intensive distribution

Question 44

_________________are physically much smaller in space.

A) Discount stores
B) Specialty stores
C) Department stores
D) Mass merchandisers

Question 45

When producers wish to make their products easily obtainable and increase convenience, they select an ___________strategy.

A) distribution intensity
B) intensive distribution
C) exclusive distribution
D) selective distribution

Question 46

__________________ are also large stores that feature apparel and home furnishings.

A) Department stores
B) Discount stores
C) Mass merchandisers
D) Specialty stores

Question 47

_________ stores, such as Walmart and Target, are all mass merchandisers.

A) Discount
B) Specialty
C) Department
D) Chain

Question 48

Companies can threaten another supply chain member, it is called ___________ power.

A) reward
B) brand
C) members
D) coercive

Question 49

Why would a retailer want to take on functions that have value that had been traditionally added by a wholesaler? Use your response to demonstrate your understanding of marketing intermediaries.

Question 50

As a consumer, you've had the experience of having your purchase scanned. It is easy to see how the retailer might use that information, from recording payment received to inventory control. That information becomes an asset as others would like to use that information. What are some of the uses for a manufacturer in the scanned data from purchases?

Question 51

What are the two types of supply chains? Provide an example of each.

Question 52

What is the essential purpose of supply chains?

Question 53

Discuss a less expensive way to establish a retail supply chain.

Question 54

Explain retailer reach relative to attracting customers.

Question 55

Explain push strategy and how it is used to convince companies to carry their products.

Question 56

What is the pull strategy and how is it applied to increase product demand?

Question 57

Discuss the cost of a pull strategy as compared to push strategy.

Question 58

Why is pull strategy antagonistic toward powerful retailers?

Question 59

Discuss pull strategy and the likelihood that it will used by less well-known or established brands.

Question 60

Discuss is the main goal of the pull strategy and provide an example of a real brand, product, or service.

Question 61

Producers sometimes choose to use exclusive distribution. What is the process for exclusive distribution and for what it is often used? Include real world examples.

Question 62

How would you explain the process of how producers use selective distribution?

Question 63

Who is the driving force for creating relationships between businesses? Explain.

Question 64

What is coercive power and how might companies utilize it? Can you provide an example?

Question 65

Explain reward power is, relative to how companies may utilize it. Provide an example to illustrate you explanation.

Question 66

Explain relationship marketing in regards to supply chains.

Question 67

Explain the role that retailers play in the supply chain process.

Question 68

Information is an important resource that flows thru supply chains. Explain how this information is captured.

Question 69

Discuss why marketers are increasingly focused on relationship marketing.

Question 70

Discuss two major sources of conflict in a supply chain.