Question 1

Explain why you agree or disagree with the following statement:
"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

Accepted Answer

The answer of Explain why you agree or disagree with...

Question 2

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?
A) rack jobbers
B) cash-and-carry wholesalers
C) piggy-backers
D) freight forwarders

Accepted Answer

A freight forwarder is a wholesaler that puts together many small shipments to create a single large shipment that can be transported more cost efficiently to the final destination.

Question 3

Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n)
A) corporate distribution system.
B) franchise arrangement.
C) manufacturer-sponsored marketing chain.
D) administered distribution system.

Accepted Answer

In an administered distribution system, the producer manages all of the marketing functions at the retail level. This gives the manufacturer more control over the way its products are priced, displayed, and promoted. Retailers often are willing to agree to this approach since it means that producers give them a lot of marketing assistance for free.

Question 4

Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n)
A) intensive distribution strategy.
B) multilevel marketing strategy.
C) intermodal distribution network.
D) selective distribution strategy.

Accepted Answer

An intensive distribution strategy attempts to put the products in as many retail stores as possible, so that customers can find the good quickly and easily. This strategy is commonly used for convenience goods such as cigarettes, candy, magazines, and gum.

Question 5

Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the
A) marketing mix.
B) franchise system.
C) channel of distribution.
D) marketing network.

Accepted Answer

A channel of distribution is the whole set of marketing intermediaries who join together to transport and store goods on their way from the producer to the consumer.

Question 6

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

Accepted Answer

The answer of What is utility? What are the major...

Question 7

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

Accepted Answer

The answer of Identify and describe the four basic types...

Question 8

The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with
A) outbound logistics.
B) reverse logistics.
C) administered distribution.
D) drop shipping.

Accepted Answer

Reverse logistics involves bringing goods back to the manufacturer because of defects or for recycling of materials.

Question 9

What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.

Accepted Answer

The answer of What is a wholesaler? Describe the difference...

Question 10

Jessi ships various perishable flowers from her greenhouses near St. Louis to florists thousands of miles away in cities such as San Antonio, Seattle, and Hartford. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Jessi to use would be
A) railroads.
B) trucks.
C) air.
D) ships.

Accepted Answer

Airplanes are the fastest of all modes of transportation.

Question 11

Marshall Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Get Gone Shipping, Inc., to find out what the shipment would cost. Get Gone has shown Marshall how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Get Gone's strategy is an example of
A) online shipping.
B) intermodal shipping.
C) supply chain shipping.
D) multilevel distribution.

Accepted Answer

Intermodal shipping uses multiple modes of transportation to complete a single long-distance movement of freight.

Question 12

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

Accepted Answer

The answer of What is logistics? Describe the types of...

Question 13

Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.

Accepted Answer

The answer of Retail distribution strategies can take three different...

Question 14

After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. "Mark has already suggested doing some of the retailer's job for them. I say go even further-let's just do away with all of the intermediaries. We can perform all of their functions ourselves," she said. She went on to explain that, "Since we won't have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically." What do you think of Rhea's suggestion?
A) It is truly radical because it calls for the elimination of the entire supply chain.
B) It is an example of an administered and contractual distribution system.
C) It should be viewed with some skepticism, because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process.
D) It is not really very radical, since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.

Accepted Answer

Rhea could be correct, but her argument is shaky. If Lite Bite eliminates intermediaries from its channel of distribution, it will have to perform all of the functions they have been providing. Intermediaries specialize in performing certain types of marketing functions, so they often can perform them more efficiently and at lower cost than the producer. Thus, Lite Bite could find that Rhea's proposal would result in higher costs.

Quiz 15: Distributing Products

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n)

Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

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

The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with

What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.

Jessi ships various perishable flowers from her greenhouses near St. Louis to florists thousands of miles away in cities such as San Antonio, Seattle, and Hartford. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Jessi to use would be

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.