Deck 13: Distributing and Promoting Products

Question 1

In addition to physical goods,point-of-sale pedestals also provide services,namely information for consumers.

Answer 1

True
Explanation:Point-of-sale pedestals are useful channels of information about the products for consumers.

Question 2

Agents and brokers buy products from manufacturers and then sell them to other businesses.

Answer 2

False
Explanation:Agents and brokers do not own, or "take title to," the goods they distribute; they merely serve as a liaison between buyers and sellers.

Question 3

Discount houses,catalog showrooms,and factory outlets are examples of product-line retailers.

Answer 3

False
Explanation:Retailers that offer special brands of certain types of products are product-line retailers.

Question 4

One drawback of nondirect distribution is higher prices.

Question 5

Marketing efforts for promoting a product are no longer needed after the customer has purchased the product.

Question 6

Because railroads do not have limited delivery routes,they can economically transport high-volume,heavy,bulky items,such as cars,steel,and coal.

Question 7

Sales promotions are short-term promotional activities designed to stimulate consumer buying or cooperation from distributors,sales agents,or other members of the trade.

Question 8

Most products are well suited to distribution by high-speed digital transmission.

Question 9

The oldest and most expensive form of sales is personal selling,in which a salesperson communicates one-on-one with potential customers to identify their needs and align them with the product.

Question 10

The ultimate objective of any promotion is to increase sales.

Question 11

Effective,knowledgeable sales personnel can often be found in the sales force of specialty stores.

Question 12

Order processing is a personal selling task used when a company seeks to promote itself and its products rather than simply to close a sale.

Question 13

Once an online catalog is in place,there are high costs in maintaining and accessing it.

Question 14

Many firms have turned to distribution through supply chains as a cornerstone of business strategy.

Question 15

The distribution mix is the combination of channels that a firm selects to get a product to end users.

Question 16

Shopping agents allow consumers to purchase products directly from their site.

Question 17

Shopping agents (e-agents)help people shop from factory outlet stores.

Question 18

Intermediaries can expedite the delivery of products but otherwise add no additional value to a distributional system.

Question 19

Most business products are distributed through direct channels.

Question 20

Among the bargain retail operations,convenience stores,in general,provide the most substantial price reductions to the products.

Question 21

Which of the following intermediaries matches numerous sellers and buyers as needed,often without knowing in advance who they will be?

A) producer representative
B) retailer
C) syndicated seller
D) sales agent
E) broker

Question 22

Which of the following terms refers to finding the most effective techniques for communicating information about and selling a product?

A) market share
B) advertising
C) promotion
D) profit management
E) customer relations

Question 23

Which of the following BEST characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm?

A) Advertising is, at its worst, very expensive with little return, whereas personal selling is also very expensive, at its worst, but with better returns.
B) Advertising, at its best, targets a specific audience about a product, whereas personal selling, at its best, is always dependent on the clients that a seller has.
C) Advertising involves public relations with the overall population of consumers, whereas personal selling involves personalized relationships with select individuals.
D) Advertising is a relatively new method of promotion, whereas personal selling is the oldest method of promotion.
E) Advertising is nonpersonal in its communication about a product, whereas personal selling is highly individualized.

Question 24

Within which of the following storage facilities would one expect to see the widest variety of products stored?

A) private warehouse
B) public warehouse
C) food storage facility
D) department store stockroom
E) specialty store stockroom

Question 25

E-intermediaries include syndicated sellers and shopping agents.

Question 26

A farmers' market is an example of which type of distribution channel?

A) direct distribution
B) retail distribution
C) wholesale distribution
D) distribution by brokers
E) distribution by sales agents

Question 27

Which of the following refers to the combination of channels that a firm selects to get a product to end users?

A) distribution mix
B) transportation strategy
C) merchandising system
D) marketing plan
E) retail system

Question 28

Which of the following denotes small retail stores carrying only one product line or category of related products?

A) department stores
B) bargain retailers
C) supermarkets
D) convenience stores
E) specialty stores

Question 29

Drop shippers carry inventory for retailers.

Question 30

An online comic book store is an example of which type of intermediary?

A) marketer
B) sales agent
C) broker
D) wholesaler
E) retailer

Question 31

Which of the following describes two of the primary objectives of promotion?

A) positioning and communicating information
B) positioning and developing new uses for products
C) developing new uses for products and communicating information
D) adding value to a product and eliminating competition
E) controlling sales volume and eliminating competition

Question 32

Which of the following terms refers specifically to the activities needed to move products efficiently from manufacturer to consumer?

A) physical distribution
B) the distribution mix
C) product distribution
D) transportation modes
E) product placement

Question 33

Rachel has set up a firm that buys circuit boards from overseas producers and sells them to a local computer manufacturing company.Which title BEST describes her role in the computer manufacturing distribution mix?

A) marketer
B) sales agent
C) broker
D) retailer
E) wholesaler

Question 34

Phillip is an independent intermediary who deals in the local produce market of northeast Ohio.Over the years,he has formed long-term relationships and come to represent several farmers in the area in the sale of their produce to local grocery stores.Which of the following titles BEST describes Phillip's role in the distribution mix of northeast Ohio produce?

A) wholesaler
B) retailer
C) sales agent
D) broker
E) direct marketer

Question 35

In which of the following bargain retailers do the customers view display samples,place orders,and wait briefly while clerks retrieve orders from attached warehouses?

A) off-price store
B) catalog showroom
C) factory outlet
D) wholesale club
E) discount house

Question 36

A company that sells eco-friendly products should use direct mail with caution because many consumers view catalogs and other direct mail as environmentally irresponsible.

Question 37

A firm that wanted to conduct a short-term activity in order to boost consumer buying would use which of the following strategies?

A) sales promotions
B) special offers
C) trade shows
D) point-of-sale displays
E) missionary selling

Question 38

A marketer seeking to reach a highly targeted audience would probably get better results from Internet advertising than from newspaper advertising.

Question 39

Which of the following BEST describes department stores?

A) A department store is a large product line retailer organized into smaller, convenience-focused components.
B) A department store is a large product line retailer organized into smaller, bargain-focused components.
C) A department store is a large product line retailer organized into smaller, producer-focused components.
D) A department store is a large product line retailer organized into smaller, product-focused components.
E) A department store is a large product line retailer organized into smaller specialty stores.

Question 40

In promotion,a pull strategy involves marketing a product to wholesalers and retailers,who then persuade customers to buy it.

Question 41

Which of the following describes the function of search engines that act as collections of business websites representing diverse products?

A) Internet service providers
B) electronic storefronts
C) cybermalls
D) e-catalogs
E) interactive retailing

Question 42

Which of the following are examples of premiums?

A) contests that reward winners with free samples of the product
B) free items given out at trade shows
C) coupons for reduced prices on certain products
D) reduced-price items available upon purchase of a product
E) reduced-price items available during a sales promotion

Question 43

Which of the following is NOT a type of sales promotion?

A) warranties
B) coupons
C) point-of-sale displays
D) trade show displays
E) free samples

Question 44

Which distribution channel is used by Valley Farm Dairy to distribute its products to consumers without intermediaries?

A) direct distribution
B) retail distribution
C) wholesale distribution
D) distribution by agents
E) distribution by brokers

Question 45

Which of the following is crucial for high-priced consumer products such as homes and cars?

A) creative selling
B) interactive marketing
C) missionary selling
D) order processing
E) trade shows

Question 46

Which of the following is involved in the final stage in the buyer decision process?

A) After the buyer has purchased the product, the marketer asks for feedback on the quality of the product.
B) After the buyer has purchased the product, the marketer promotes more advanced versions of the product.
C) After the buyer has purchased the product, the marketer provides customer assistance for use of the product.
D) After the buyer has purchased the product, the marketer reminds the buyer that he or she made a wise purchase.
E) After the buyer has purchased the product, the marketer promotes related products by the same company.

Question 47

Which of the following gives examples of bargain retailers?

A) bakery outlet, athletic shoe store
B) local bakery, discount shoe chain
C) bakery thrift shop, athletic shoe store
D) bakery thrift shop, shoe factory outlet
E) local bakery, shoe factory outlet

Question 48

Which of the following BEST describes the purpose of point-of-sale displays?

A) to inform customers about the benefits of the products
B) to entice customers to buy additional products
C) to make it easier for customers to find products
D) to promote the reputation of the company offering certain products
E) to target specific messages about the product to customers

Question 49

Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions?

A) discount houses
B) catalog showrooms
C) second-hand stores
D) factory outlets
E) direct-response bargain marketing

Question 50

Which of the following will a large firm utilize when it needs temporary storage space for a large amount of products in immediate demand?

A) public warehouses
B) store stockrooms
C) relay warehouses
D) private warehouses
E) storage warehouses

Question 51

In which type of store would you MOST likely find shoes,furniture,a women's section,and a men's section?

A) a supermarket
B) a discount house
C) a department store
D) a convenience store
E) a specialty store

Question 52

J.C.Penney owns and maintains its own warehouses.What is this type of warehouse called?

A) public warehouse
B) relay warehouse
C) retail stockroom
D) private warehouse
E) storage warehouse

Question 53

Convenience stores utilize which kind of distribution?

A) direct distribution
B) retail distribution
C) wholesale distribution
D) distribution by agents
E) distribution by brokers

Question 54

Which of the following is the slowest and the cheapest mode of transportation?

A) railroads
B) planes
C) pipelines
D) water carriers
E) trucks

Question 55

Which component of the distribution mix do agents and brokers represent in exchange for receiving commissions?

A) producers
B) consumers
C) retailers
D) industrial users
E) other intermediaries

Question 56

Home Shopping Club and QVC are examples of which of the following retail sales outlet?

A) direct selling
B) video retailing
C) electronic shopping
D) virtual selling
E) telemarketing

Question 57

What are the three major classifications of retail outlets in the United States?

A) large-sized outlets, medium-sized specialty shops, small-sized convenience stores
B) product-based retailers, discount-based retailers, convenience-based retailers
C) quality-based retailers, quantity-based retailers, specialty-based retailers
D) producer-owned retailers, franchised retailers, independently owned retailers
E) brick-and-mortar retailers, e-retailers, hybrid retailers

Question 58

In which of the following retail outlets is there a most direct communication line between producer and consumer?

A) e-retailing
B) specialty store retailing
C) catalog showroom retailing
D) mail-order retailing
E) brokered retailing

Question 59

Which of the following is the fastest and most expensive transportation mode?

A) railroads
B) airplanes
C) pipelines
D) water carriers
E) trucks

Question 60

Which distribution channel is used by companies which distribute their goods through their own system of outlets?

A) direct distribution
B) retail distribution
C) wholesale distribution
D) distribution by agents
E) distribution by brokers

Question 61

A well-established Internet service provider is facing stiff competition from several new companies.Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors?

A) order processing
B) sales promotions
C) direct marketing
D) creative selling
E) missionary selling

Question 62

Which of the following is MOST directly related to differences in transportation cost from mode to mode?

A) packing necessary for the product
B) fuel efficiency of the carrier
C) regularity of use of a given carrier
D) discount agreements with the carriers
E) delivery speed

Question 63

Marshall is a route salesperson for a beverage company.Which of the following would MOST likely occupy his work time?

A) trade show demonstrations
B) sales promotions
C) missionary selling
D) direct mail advertising
E) order processing

Question 64

Which of the following,if true,would MOST strengthen the argument for continuing direct mail marketing?

A) The consumers that direct mail marketing reaches are much better prospects compared to those reached by advertising.
B) Direct mail marketing accounts for 34 percent of all U.S. direct marketing spending.
C) Direct mail marketing has proven to be successful for promoting certain product types, such as cosmetics and designer apparel.
D) The growth of direct mail marketing has been explosive, with customers being flooded with such material.
E) Telephone marketing, another form of direct marketing, is becoming easier to use due to auto-dialers.

Question 65

Which of the following,if true,would MOST weaken the argument for continuing direct mail marketing?

A) Riverdale will have to use highly selective mailing lists to ensure that its messages reach the target audience.
B) Some analysts predict a decline in the use of traditional forms of direct mail in coming years.
C) Competitors are using more aggressive, and often more intrusive, direct marketing techniques.
D) Results of the program will have to be evaluated and monitored continuously in order to reduce costs.
E) Direct mail marketing costs much more per thousand people reached than mass media outlets such as television or magazines.

Question 66

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

Question 67

Explain direct-response retailing.

Question 68

Which of the following describes BEST what distinguishes publicity among all other forms of promotion?

A) Publicity is less directed than other forms of promotion.
B) Publicity is less effective than other forms of promotion.
C) Publicity is more impersonal than other forms of promotion.
D) Publicity is cheaper than other forms of promotion.
E) Publicity is more direct than other forms of promotion

Question 69

A new Internet service provider has entered a very crowded market.Which of the following methods would it MOST likely use in order to make consumers aware of its services?

A) creative selling
B) direct marketing
C) interactive marketing
D) missionary selling
E) personal selling

Question 70

Which of the following,if true,would strengthen the argument for using television as the medium for the next campaign?

A) A study shows that the bulk of television audiences are teenagers and people over 65.
B) More than 43 percent of U.S. advertising dollars are spent on national and local television commercials versus 8 percent on Internet advertising.
C) The number of video-on-demand viewers is expected to quadruple during the next five years.
D) Increasingly, consumers are choosing not to watch ads.
E) Effective television ads are still capable of holding the audience's attention.

Question 71

Which of the following,if true,would strengthen the argument for shifting to direct-response television marketing?

A) Many mainstream companies such as P&G, Dell, Disney, and Bose have begun using infomercials to sell their wares.
B) ValueNet could slightly modify its telemarketing techniques and receive a much better customer response.
C) TV media production costs are expected to increase substantially as the economy moves toward recovery.
D) The majority of Americans have registered their telephone numbers with the National Do Not Call Registry, and the number of registered numbers continues to grow.
E) Despite objections and angry responses to cold calls, total sales from telephone marketing have been steady over the years.

Question 72

Which of the following,if true,would MOST seriously weaken the argument for using the Internet as the medium of advertising?

A) Countries with restrictive regimes are yet to free this medium from controls over political content.
B) Consumers are extremely frustrated with annoying pop-up ads that affect the quality of browsing.
C) Studies show that customers tend not to notice Internet ads that are not intrusive in nature.
D) The interactive capabilities of Internet ads are rarely being used in a creative manner.
E) People who are online are also known to engage in media multi-tasking.

Question 73

Explain the difference between an electronic storefront and a cybermall.

Question 74

Which of the following,if true,would strengthen the vice president's argument?

A) West Coast Unlimited recently signed a long-term lease for the warehouse's current location.
B) The percentage decrease in taxes is higher than the percentage decrease in rent.
C) West Coast Unlimited's competitors are also capable of moving to the low-rent, low-tax area.
D) The political environment in the new area is stable, with no expected changes in tax policy.
E) Changes in the macroeconomic environment may reduce costs associated with the current location.

Question 75

Which of the following,if true,would MOST weaken an argument for using e-mail for direct mail marketing?

A) Growth in the use of e-mail for direct marketing is uncertain.
B) Studies show that a large percentage of such e-mails go directly to customers' spam folders.
C) Riverdale has traditionally used catalogs for its direct marketing efforts.
D) Not everyone who has used this medium for direct marketing has been successful.
E) Only interested customers will go through such messages in great detail.

Question 76

A problem associated with Internet advertising is that the audience controls the exposure,so viewers are able to avoid unwanted ads.Which of the following is the BEST response to this criticism?

A) Internet advertising allows target audiences to learn more about products that interest them.
B) Exposure control is a problem associated with all media types.
C) The ability to avoid unwanted ads is an important aspect of privacy.
D) Audiences can be forced to watch the entire message using technology.
E) Internet advertising is too new to evaluate its effectiveness.

Question 77

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price.Which of the following is the BEST criticism of this argument?

A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate.
B) It fails to demonstrate that traditional retailing businesses are also in jeopardy.
C) It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain.
D) It does not specify how wholesalers can reduce costs most effectively.
E) It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.

Question 78

Which of the following,if true,would weaken the argument for shifting to direct-response television marketing?

A) Most customers perceive infomercial sales tactics to be loud, aggressive, and questionable.
B) Some companies have found it difficult to adopt a direct-response television strategy.
C) Consumer behavior is highly dependent on the state of the economy.
D) New forms of direct marketing channels such as podcasting and iTV are experiencing exciting growth.
E) ValueNet's products could successfully be sold using multiple direct marketing methods.

Question 79

Which of the following,if true,would weaken the vice president's argument?

A) The low-rent, low-tax area is located farther from delivery sites.
B) West Coast Unlimited's competitors often place their warehouses in relatively expensive locations.
C) Better use of technology could reduce distribution costs more than a relocation could.
D) Final customers are almost always unaware of the location of the wholesaler.
E) Delayed shipments from suppliers are already creating problems for West Coast Unlimited's distribution network.

Question 80

One manager argues that Riverdale's corporate image will suffer if customers receive too many e-mails about its different services and offerings.Which of the following,if true,is the MOST effective counterargument?

A) Customers can report the e-mails as spam and ensure that they do not receive these service mails in their inboxes in the future.
B) Research shows that customers who opt to receive marketing e-mails rarely complain, even if they are not happy about them.
C) This is a problem that affects all e-mail marketers, not Riverdale alone.
D) Customers can use a ready menu of e-mail selections to opt in and receive only the marketing product information they are interested in.
E) The cost of e-mail marketing is lower than public service advertising.