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Exam 15: Distributing Products

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Question 141

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Traditional retailers can stay competitive with online retailers by being part of a unified system of distribution.

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B) False

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Question 142

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Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

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The four basic types of systems used to ...

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Question 143

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Mall owners like to have __________ located along the walkways of their malls,because they create a marketplace type of atmosphere.

Vending machines are used primarily to sell goods where consumers have little interest in convenience.

An effective channel of distribution does more than simply ensure that goods are transported efficiently from producer to buyer.

In administered distribution systems,retailers:

Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.

Soundworthy Stereo is a producer of high quality speakers and stereo components.The company sells its products through a few preferred retailers in any geographic area.Soundworthy uses a selective distribution strategy.

In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make.

____________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.

Mini-Case "We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods.Lite Bite is a producer of low fat,low calorie snack foods.The other managers attending the meeting were her two top assistants,Mark Etter and Rhea Taylor. "First,sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients.We've got our work cut out for us to recover from that setback.Many stores quit carrying our products,and even the ones that continued to do so put less emphasis on displaying and promoting them.We've got to get our products into as many stores as possible.Consumers shouldn't have to go all over town trying to find our snacks.We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants,and saw that they seemed ready to make some proposals.However,she decided to get another important issue out on the table before stopping to discuss solutions,so she continued with her comments."The other big concern is the cost of moving our goods.Distribution costs are a major part of the overall cost of selling our goods.What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns,Dee sat down at the head of the table,saying to her assistants,"O.K.guys,I'm ready for suggestions." -Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n) :

One advantage of a franchise system of distribution is that it results in a consistent level of quality and service.

Melanie is a broker who has just helped negotiate a major deal.As a broker Melanie can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.

Providing buyers with credit terms such as "90 days same as cash" is a way marketing intermediaries can provide time utility to customers.

Loundes Enterprises loads its products into truck trailers,then loads the trailers onto ships to transport long distances.Once the ship reaches the port nearest the final destination,the trailers are unloaded and hauled to their final destination by truck.Loundes' practice of transporting truck trailers on ships is known as ____________ shipping.

In a(n) __________ distribution system the producer manages all of the marketing functions at the retail level.

Once the final customer has taken title to a good,marketing intermediaries no longer are involved in providing utility to the customer.

Agents and brokers and wholesalers are types of marketing intermediaries.

Tammy Knowles is the publisher of "New Woman Magazine," which is a publication targeted to Gen Y women.Because it is a small,new publication,some of the larger bookstores,convenience stores and newsstands are not agreeing to distribute the magazine.Tammy is very concerned by this trend,because she believes that her publication,like most magazines,needs ____________ distribution in order to succeed.

WeddingChannel.com is an Internet company that helps people with the complex task of planning a wedding.Multiple vendors are recommended for things like flowers,caterers,wedding gowns,and more.Through Wedding Channel a couple can establish a website that acts as a registry.Once the couple is married,the website directs them to another site having to do with beginning married life.What type of utility (utilities) is this website providing to its users?