Deck 11: Small Business Distribution and Location

Question 1

You should start the leasing process by looking for locations.

Answer 1

True

Question 2

Businesses with high customer contact include such diverse operations as medical or legal offices and manufacturing businesses.

Answer 2

False

Question 3

A company that will warehouse your products and fill your customer's orders for you is called a multichannel firm.

Answer 3

False

Question 4

Leasing is an option with a considerably lower initial cash outlay,and it is often the only feasible choice for new businesses.

Question 5

Traffic generators are other businesses that bring customers to the area.

Question 6

Direct exporting refers to selling directly to foreign countries using middlemen such as agents and export trading companies and not selling to the domestic consumers.

Question 7

Magazines are very appropriate places for direct response advertising for business-to-business selling.

Question 8

Unfortunately for the entrepreneurs,many distributors and wholesalers are not interested in taking on a start-up product.

Question 9

Grid layout is the layout more typically found in upscale department stores.

Question 10

HVAC is the least expensive type of repair.

Question 11

The advantage of the United Nations having 192 member countries is that a new exporter can and should market their product since they are very similar in cultural,political,and economic environments.

Question 12

For payment procedures in exporting,typical methods include letters of credit or documentary drafts.

Question 13

Layout needs to be designed so as to eliminate unnecessary and excessive employee movement.

Question 14

A middleman business which buys and sells to other businesses rather than consumers is called a retailer.

Question 15

The current rate for a direct mail address list is about $500 per thousand names.

Question 16

In exporting,the easiest payment procedure is to require up-front cash payment prior to shipment.

Question 17

There are three typical locations for services: at the client's location,at the mutually accessible location,and at your firm's location.

Question 18

Usually the first technique an entrepreneur uses to get customers is word-of-mouth.

Question 19

One of the major mistakes commonly made by U.S.businesspeople is being too sensitive to cultural differences.

Question 20

Door-to-door sales do offer the flexibility of having your product available around the clock and at convenient locations.

Question 21

Which of the following is NOT a form of direct mail?

A)Catalogs
B)E-mails
C)Faxes
D)Vending machines

Question 22

What is perhaps the greatest challenge of the direct mail approach?

A)The need for adequate preparation before selling
B)The need for writing and photography skills
C)The need to find the right market for your offering
D)A way to get customers' attention

Question 23

Which of the following direct sales methods offer the flexibility of having your product available around the clock and at convenient locations?

A)Leasing space at a craft fair
B)Farmers' markets
C)Vending machines
D)Door-to-door sales

Question 24

Which of the following is NOT a form of direct marketing?

A)Word-of-mouth
B)Telemarketing
C)Guerilla marketing
D)Wholesalers

Question 25

Which of the following is the most expensive form of direct marketing?

A)E-mail
B)Telemarketing
C)Brochures
D)Leaflets

Question 26

The distribution channel of manufacturers to the consumer is referred to as

A)wholesaler marketing.
B)direct marketing.
C)middlemen sales.
D)agent-buyer relationship.

Question 27

Telemarketing can either be _____ or _____.

A)in person;on the phone
B)by fax;e-mail
C)door-to-door;direct response advertising
D)inbound;outbound

Question 28

Which of the following is NOT a method of direct selling?

A)Vending machine
B)Word-of-mouth
C)Leasing space at a craft fair
D)Industrial sales

Question 29

Which of the following is the least expensive form of direct mail?

A)Catalogs
B)Videos
C)Direct faxing
D)E-mail

Question 30

Contact via telephone for the express purpose of selling a product or service is called

A)direct response advertising.
B)guerilla marketing.
C)telemarketing.
D)multichannel marketing.

Question 31

A _____ is having just enough product on your shelves to meet the immediate purchases;this usually requires frequent shipment from your supplier.

A)macroinventory
B)in-process inventory
C)microinventory
D)just-in-time inventory

Question 32

_____ is usually the first technique an entrepreneur uses to get customers.

A)Internet
B)Guerilla marketing
C)Word-of-mouth
D)Telemarketing

Question 33

One method of spreading information about one's business through the comments friends and customers make to other potential customers is called

A)word-of-mouth.
B)guerilla marketing.
C)telemarketing.
D)direct sales.

Question 34

For small business location issues,there are two basic "where" questions to be considered

A)Where are my customers? Where should I be?
B)Where are my customers? Where are my suppliers?
C)Where are the raw materials? Where are the finished products?
D)Where are the sales? Where are the profits?

Question 35

In _____,you place an ad in a magazine,newspaper,radio,billboard,or television that includes a phone number,e-mail,or snail-mail address,and wait for the orders to come in.

A)telemarketing
B)direct mail sales
C)guerilla marketing
D)direct response advertising

Question 36

A _____ is a set of goods or services that consists of only one or a few items.

A)customer-managed inventory
B)vendor-managed inventory
C)microinventory
D)just-in-time inventory

Question 37

Which of the following is NOT a requirement of the national law related to e-mailing?

A)Do not in any way falsely misrepresent who you are.
B)For direct e-mailing,sender must use harvested e-mail addresses.
C)All emails should allow recipient the opportunity to "opt-out."
D)Do not in any way falsely misrepresent where the e-mail is from.

Question 38

Which of the following statements about catalogs is true?

A)Typically,the number of catalogs you will have to order is 10,000 at a minimum.
B)Creating and disseminating a catalog online saves you the cost of printing and mailing.
C)Most full-time entrepreneurs typically try to get their products into existing catalogs.
D)Depending on the size and quality of the catalog,costs for print versions start at around $2 each.

Question 39

Which of the following are more modern forms of direct mail?

A)Catalogs and e-mailing
B)Direct faxing and e-mailing
C)Sales letters and e-mailing
D)Postcards and direct faxing

Question 40

Which of the following is the cheapest form of direct response advertising?

A)Billboard
B)Radio,30-second spot
C)Magazine newsweekly,4-color page
D)Newspaper daily,1/3 black and white page

Question 41

The end user of a product or service is called a(n)

A)consumer.
B)agent.
C)wholesaler.
D)retailer.

Question 42

The use of several different channels to reach your customers,for example,a Web site,direct mail,and traditional retailing is called

A)guerilla marketing.
B)Internet marketing.
C)multichannel marketing.
D)direct sales.

Question 43

Putting together an export strategy involves answering all of the following questions EXCEPT

A)where should we go?
B)whom do we contact over there?
C)are we ready?
D)which employees do we send?

Question 44

A middleman business which represents a manufacturer's products or services to other business-to-business middleman firms is called a(n)

A)retailer.
B)wholesaler.
C)agent.
D)supplier.

Question 45

A company that will warehouse your products and fill your customers' orders for you is called

A)a retailer.
B)the U.S.Postal Service.
C)fulfillment center.
D)a wholesaler.

Question 46

Exporting using middlemen such as agents or export management companies is referred to as

A)indirect exporting.
B)freight forwarding.
C)e-tailers.
D)high credit risk exporting.

Question 47

What form of direct response advertising provides both geographic and demographic segmentation,though the audience for this medium is generally highly distracted?

A)Television
B)Radio
C)Magazines
D)Newspapers

Question 48

A store that exists only on the Internet is called a(n)

A)wholesaler.
B)e-tailer.
C)agent.
D)electronic manufacturer.

Question 49

A middleman business which buys and sells to businesses rather than consumers is called a(n)

A)manufacturer.
B)agent.
C)wholesaler.
D)retailer.

Question 50

With direct marketing,one option to consider when you are doing quantity shipping is

A)the retailer.
B)the U.S.Postal Service.
C)a fulfillment center.
D)the wholesaler.

Question 51

Identify the term for any form that assists in getting your product to your end customer.

A)Electronic malls
B)Intermediaries
C)Born internationals
D)Traffic generators

Question 52

A new firm that opens a Web site immediately,thus being exposed to customers around the world is called

A)freight forwarders.
B)indirect exporters.
C)born internationals.
D)e-tailers.

Question 53

One suggestion for finding out which distribution channel is correct for your product is to

A)start at the end and work your way up by asking each link from whom they buy.
B)ask the competitors.
C)explore what regulations are required from the small businesses.
D)ask the customers who do they prefer buying the products from.

Question 54

The use of creative and relatively inexpensive ways to reach your customers with techniques such as door-knob hangers and flyers under windshield wipers is called

A)multichannel marketing.
B)guerilla marketing.
C)direct sales.
D)direct mail.

Question 55

A middleman business which sells to consumers or end-users of a product is called a(n)

A)manufacturer.
B)agent.
C)wholesaler.
D)retailer.

Question 56

Which of the following direct response advertising forms allows for specific geographic segmentation?

A)Newspapers
B)Magazines
C)National television
D)Home shopping networks

Question 57

Which form of direct response advertising allows for very specific targeting and offers an appropriate place for direct response advertising for business-to-business selling?

A)Television
B)Radio
C)Newspaper
D)Magazines

Question 58

_____ is a form of direct response advertising that reaches local people but does not permit a lot of details.

A)Radio
B)Billboard
C)Magazine
D)Newspaper

Question 59

Who can afford to take a chance on unknown firms or products due to low overheads and unlimited shelf space?

A)E-tailers
B)Wholesalers
C)Retailers
D)Fulfillment centers

Question 60

This form of marketing allows your customers to contact you in the way they feel the most comfortable.

A)Guerilla marketing
B)Multichannel marketing
C)Internet marketing
D)Direct sales

Question 61

Identify this type of service in which face-to-face meetings with the client are infrequent.

A)Mutually accessible location
B)Remote location
C)Client's location
D)Competitor's location

Question 62

_____ is a concession which covers the time while you prepare your location prior to opening.

A)Rent-free use period
B)Leasehold improvement
C)Construction allowance
D)Tenant improvement allowance

Question 63

In the _____ layout,material flows in on one side of the operation and continues to the other end of the operation.

A)grid
B)production line
C)free-form
D)process

Question 64

For high customer contact businesses,which of the following is NOT a critical site selection consideration?

A)Traffic
B)Customer ease
C)Cost potential
D)Competition

Question 65

When an existing firm with the correct manufacturing capabilities makes your product for you,it is called

A)contract manufacturing.
B)sheltered workshops.
C)e-tailing.
D)freight forwarding.

Question 66

All of the following are examples of using middlemen for indirect exporting EXPECT

A)export management companies.
B)agents.
C)export trading companies.
D)fulfillment centers.

Question 67

Restaurants and barbershops are examples of which of the following locations for services?

A)Client's location
B)Mutually accessible location
C)Your firm's location
D)Competitor's location

Question 68

Which of the following is an example of a high customer contact form of business?

A)Manufacturing businesses
B)Legal offices
C)Headquarters of client location-based services
D)Remote location services

Question 69

All of the following are examples of low customer contact businesses EXCEPT

A)industrial parks.
B)business incubators.
C)empowerment zones.
D)retail establishments.

Question 70

Which of the following is a nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers?

A)Contract manufacturing
B)E-tailing
C)Sheltered workshops
D)Freight forwarding

Question 71

Which of the following statements about handling an early termination is false?

A)The bailout clause lets you out of the lease if sales do not meet an agreed-to level.
B)If your business falters,you are obligated to continue paying your monthly rent and fees for the duration of the lease.
C)In terms of a three-year lease,with a one-year cap you are obligated to pay one year's more rent.
D)In terms of a three-year lease,if you close down after only six months,you are obligated to pay 30 more months' rent.

Question 72

Firms specializing in arranging international shipments-packaging,transportation,and paperwork are called

A)born internationals.
B)e-tailers.
C)direct exporters.
D)freight forwarders.

Question 73

Which of the following statements about HVAC is false?

A)It can be the most expensive type of repair.
B)For any type of equipment,you want the landlord to at least guarantee the first six months of operation.
C)It is one of the types most likely to go wrong.
D)If the location has a central air system so everyone shares the same air conditioner and heating equipment,it is the landlord's responsibility.

Question 74

Which of the following can be exercised only when presented with specified shipping documents?

A)Documentary drafts
B)Letter of credit
C)Airway bill
D)Bill of lading

Question 75

For many entrepreneurs,their hometown is their first choice for the location of their business because of all of the following EXCEPT

A)convenience and a familiar setting.
B)elimination of a lot of possible family issues.
C)local government offering subsidized locations to local businesses.
D)their knowledge about the market or potential customers.

Question 76

These can be used to perform light manufacturing or assembly sort of business.

A)Contract manufacturing
B)E-tailing
C)Sheltered workshops
D)Freight forwarding

Question 77

A(n)_____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.

A)documentary draft
B)letter of credit
C)import document
D)freight document

Question 78

_____ are permanent changes made to the location to fit your business's needs.

A)Build-ins
B)Improvements to buildings
C)Leasehold improvements
D)Improvements to land

Question 79

"Tenant improvement allowances" or "construction allowances" are rent dollars typically

A)$1 to $10 a square foot.
B)$5 to $25 a square foot.
C)$10 to $50 a square foot.
D)$15 to $75 a square foot.

Question 80

Other businesses that bring customers to the area are called

A)traffic generators.
B)competitors.
C)nonprofit organizations.
D)local government agencies.