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Exam 15: Distributing Products

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Question 61

True/False

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Larry and Dale Ingram solicit orders for lumber from area wholesalers and retailers specializing in building supplies and arrange to have the orders shipped directly from nearby logging companies.Larry and Dale operate as drop shippers.

A) True
B) False

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Question 62

Multiple Choice

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Stores that remain open 24 hours a day,seven days a week are providing _________ utility to their customers.

A) possession
B) time
C) service
D) schedule

E) C) and D)
F) None of the above

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Question 63

Multiple Choice

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Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores,supermarkets,and drug stores.He keeps title to the goods until they are sold and then splits the profits with the retailer.Henry works as a drop shipper.

Railroads are an energy-efficient mode of transporting many types of goods.

TasteBest Spice Company was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process,so it took over all of the marketing functions for its products at grocery stores.The grocers like this arrangement because TasteBest provides outstanding marketing support for its products.TasteBest is using a(n) _________ system to distribute its products.

Pipelines move liquid products very efficiently and can even move products like coal.

Specialty stores use a wide variety of products in one product category as their key competitive tool.

Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

Marketing intermediaries can provide _________ utility by offering customers affordable credit,free delivery,and product guarantees.

Which of the following statements about service utility is most accurate? Service utility is:

Merrill helps growers of fresh fruits and vegetables negotiate sales to food processing companies.However,once he has helped negotiate the transaction,he does not maintain a long-term relationship with the growers.Merrill is an example of a sales agent in this market.

The sale of goods to a business purchasing the items for resale is a wholesale transaction.

Pipelines are used primarily to transport water,petroleum,and petroleum products.

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." -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." Rhea's suggestion:

In multilevel marketing,salespeople not only sell the product,they also recruit other people to sell the product.

Telemarketing is the sale of goods and services by telephone.

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

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." -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: