Deck 7: Marketing: Distribution and Location

Question 1

In which of the following is the fourth P considered?

A) distribution strategy
B) promotional mix
C) marketing strategy
D) marketing mix

Answer 1

marketing mix

Question 2

In which type of rental arrangement is a payment scale negotiated if you are one of the original tenants?

A) floating
B) flexible
C) occupancy
D) variable

Answer 2

floating

Question 3

In which type of rental payment calculation does the tenant pay not only the rent for the space occupied but also a portion of all utilities, services, and property taxes?

A) gross rent
B) net rent
C) percentage rent
D) common area rent

Answer 3

net rent

Question 4

What should you do when a "hot" location turns up for your new business?

A) negotiate a net lease with a location escape hatch
B) review it as carefully as any location
C) demand a short-term year lease, with an option to renew
D) negotiate free rent for three months

Question 5

In which type of lease would you pay, for example, $30,000 per year plus 10 percent of gross sales over $300,000?

A) net
B) gross
C) percentage
D) variable

Question 6

What is the term for the lifestyle in which people are spending more leisure and work time at home?

A) boomeranging
B) health and home
C) cocooning
D) hibernating

Question 7

As described in the Chapter 7 case study, which of the following should Mick Beatty have included in his lease to protect himself from the situation he was faced with after buying Eddie's Pub?

A) restrictive covenant
B) right to transfer
C) gross lease clause
D) net lease clause

Question 8

Which statement best describes the "loss factor"?

A) the number of customers you lose to direct competition
B) the number of customers you lose due to a poor location
C) the proportion of usable business area to total rentable area
D) the proportion of unusable business area to total rentable area

Question 9

What is the term for the way in which a producer makes a product or service available to the consumer?

A) distribution
B) production
C) location
D) delivery

Question 10

According to the life-cycle stages of business locales, in which stage are big box shopping malls?

A) embryo
B) growth
C) maturity
D) decline

Question 11

According to the text, as which of the following would a financial advisor, fitness trainer, or concierge service agent find the best opportunities?

A) home-based worker
B) network employee
C) direct marketing operator
D) wholesale distributor

Question 12

Which of the following is NOT a major reason discussed in the text for the growth in home-based businesses?

A) cocooning
B) lower productivity
C) downsizing
D) increase in vigilant customers

Question 13

As described in the Chapter 1 and Chapter 7 case studies, which of the following did Adrienne Armstrong, owner of Arbour Environmental Shoppe, use to her business advantage?

A) multiple distribution channels
B) a franchising channel
C) a home-based distribution channel
D) an Internet-network distribution strategy

Question 14

Which of the following is characteristic of an anchor tenant?

A) insignificant in a shopping centre
B) usually a destination location for traffic
C) seldom enhances the value of a location
D) usually pays a percentage of other tenants' rents

Question 15

What did Gloria Brookstone learn from working with large manufacturers?

A) manufacturers were the best route to go for her business
B) she needed to ensure she had more control
C) negotiating with manufacturers was always an option
D) negotiating with manufacturers was never an option

Question 16

Which of the following is a method for a producer to make a product or service available to the consumer?

A) channel captain
B) distribution channel
C) wholesaling
D) manufacturing

Question 17

Which of the following involves selling goods and services directly to the consumer or end user?

A) end-user distribution
B) direct selling
C) retailing
D) direct distribution

Question 18

According to studies discussed in the text, productivity increases by 20 to 60 percent when employees can do which of the following?

A) work at their own pace during peak times
B) bring their pets to work
C) surf social media websites such as Facebook or Twitter
D) work at their own pace during slow times

Question 19

According to the text, which of the following should be a major factor in your decision to start a home-based business?

A) your product or service
B) your lifestyle
C) the needs of your target customers
D) your space/physical requirements

Question 20

According to the author, purchasing a building rather than leasing may have which of the following impacts?

A) increase your cost of inflation
B) require capital that is not really needed to run the business
C) inhibit your ability to relocate
D) increase your financial leverage ratio

Question 21

Small business speaker Sheila Mather established a successful business in which of the following areas?

A) retail
B) home-based
C) manufacturing
D) franchise

Question 22

According to the text, what is a substituter?

A) a part time teacher
B) an employee who spends part of the day at home
C) an employee who works part time and also has a home-based business part time
D) a part time home-based business start-up

Question 23

According to the text, what is a supplementer?

A) an employee who works more than one job
B) an employee who brings work home
C) an employee who outsources their work
D) an employee who works a full time job and owns a small business

Question 24

Which of the following is a direct distribution channel?

A) franchising
B) wholesaling
C) retailing
D) business-to-business retailing

Question 25

What is the approximate percentage of household workers who are self-employed?

A) 10
B) 25
C) 50
D) 75

Question 26

Which of the following is monitored and impacts the cost-of-living cap?

A) consumer confidence index
B) inflation
C) consumer price index
D) gross domestic product index

Question 27

For Mick Beatty, who purchased Eddie's Pub, which statement best describes his biggest surprise?

A) assume nothing
B) be aware of the bylaws
C) have money ready for an emergency
D) complete all the required paperwork

Question 28

According to Bette Lindsay and her husband, who opened a bookstore, what assumption did she make in her location analysis that caused months of havoc?

A) that direct competitors would not be allowed in the mall
B) that target customers would shop two to three times a month
C) that the anchor tenant would be there forever
D) that her business plan was solid

Question 29

Which of the following best represents a "destination location"?

A) desirable to consumers
B) close to an airport or shipping yard
C) an anchor tenant
D) the closest location to your customers

Question 30

According to the text, which of the following best illustrates how a location filter is used?

A) a checklist of criteria that are important to your target customer
B) a location analysis identifying the number of direct competitors in the area
C) a rating of your personal priorities
D) a rating of criteria that are required to start up a home-based business

Question 31

Which of the following describes channels of retailing for wholesaling and franchising?

A) subdistribution
B) direct
C) indirect
D) B2B

Question 32

In which stage of the life cycle is a vacant lot?

A) embryonic
B) growth
C) maturity
D) decline

Question 33

Which of the following protects the leasee should a majority of other tenants decide to vacate the same premises?

A) restrictive covenant
B) right to transfer
C) floating rent
D) escape clause

Question 34

Through which of the following did Gloria Brookstone learn the most about her target market?

A) secondary research
B) primary research
C) new-eyes research
D) outsourcing a market research firm

Question 35

According to the text, home-based workers represent about five percent of the Canadian workforce.

Question 36

If you are planning to work out of your home, you really don't need a location checklist.

Question 37

Neighbourhoods, like products, go through life cycles.

Question 38

It is estimated that home-based businesses will be on the decline in the next few years as baby boomers begin to retire.

Question 39

According to the text, your most important location consideration will be your neighbourhood mix.

Question 40

According to the text, your firm's image can be affected by the types of businesses in the neighbourhood where you are located.

Question 41

Any leasehold improvements you might require for your new business are the responsibility of the landlord.

Question 42

According to the text, most landlords will require you or your lawyer to draft a proposed lease.

Question 43

An important Action Step is to "fantasize your perfect location."

Question 44

Gloria Brookstone was successful in her QuestVest business venture (Chapter 7 case study) because she found the right high pedestrian traffic retail location.

Question 45

Retailing includes businesses that sell services as well as products.

Question 46

According to the text, in most cases, the Internet is not a particularly good source of location information.

Question 47

In most cases, Statistics Canada and Industry Canada will be your only sources of secondary information for your location decision.

Question 48

A lease is drawn up by the property owner's lawyer, so the terms will normally favour the tenant.

Question 49

Unforeseen circumstances might force you to sublet, which means that you will probably have to assign the lease.

Question 50

Your net rent will include the cost of all services and utilities.

Question 51

A lease is a legal document and there is usually no room for negotiation.

Question 52

According to the text, the best home-based business to go into depends mainly on emerging market trends, such as personal health care and elder care.

Question 53

According to the text, successful entrepreneurs take advantage of multiple distribution channels.

Question 54

Three major types of distribution channels are retailing, wholesaling, and franchising.

Question 55

For a new location, it is reasonable to ask for a rent-free period while you renovate.

Question 56

Competition, security, image, and accessibility should all be considered when determining the right location.

Question 57

Mail-order and online sales are two types of retailing subdistribution channels.

Question 58

Some retail landlords, especially in large malls, want a base rate plus a percentage of gross sales.

Question 59

According to the text, writing restrictive covenants into your lease is a good way to guard against competition in your area of trade.

Question 60

Primary research, such as interviewing, can help you find the right location for your business.

Question 61

You should plan to write a location escape hatch into your lease.

Question 62

A gross rent is a rental arrangement in which the tenant pays for services and utilities.

Question 63

When considering a location, it is never a good idea to have competitors right next door.

Question 64

Franchising is an indirect channel option.

Question 65

Brainstorming and mind mapping can help you to evaluate business locations.

Question 66

A distribution channel is where you locate your business.

Question 67

A lease that specifies that the tenant pays a base rate plus a percentage of the gross sales is called a ____________ ____________.

Question 68

A clause in a lease that allows it to be cancelled or modified is known as ____________________.

Question 69

The place where you distribute the goods and services for your business:__________ ____________.

Question 70

A special kind of distribution system in which one company grants the rights to sell its products or services to another company or individual is called ____________________.

Question 71

For every business, the "perfect" location is ________.

Question 72

The "best" home-based business for you to choose will depend on your ability to connect your values, experience, and knowledge to current _____________ ________________.

Question 73

A rental where the landlord provides all services and utilities, including tenant janitorial services, is known as _________ _________.

Question 74

With regard to location considerations, successful entrepreneurs take into account more than one _______________ ________________.

Question 75

Selling a product or service to an end-user is known as __________________.

Question 76

A shopping mall is in the __________ stage of the life cycle of business locales.

Question 77

Working from the home has become a major trend in the way Canadians do business. What are five reasons for this trend?

Question 78

Briefly explain the concept of the perfect location.

Question 79

Explain the concept of percentage leases.

Question 80

Your location analysis cannot rely strictly on secondary research. What are three other types of research techniques you might consider?