Ch. 15 Bus-101
__ involves planning, implementing, and controlling the flow of final goods to their destination to satisfy customers, and it must do all of this while still ensuring a profit for companies.
Logistics
Which statement is true about marketing intermediaries?
Marketing intermediaries perform certain marketing tasks faster and less expensively than most manufacturers could.
Marketing intermediaries such as transport companies add costs to products, but they are usually outweighed by the value they create for consumers.
True Reason: This is true. Marketers say intermediaries add value, and that the value greatly exceeds the cost. While marketing intermediaries can be eliminated, their activities cannot if consumers are to have access to products and services.
A reason why marketing intermediaries such as transport companies and wholesalers have survived is that they __.
add enough value to products to outweigh the added costs
A distribution system where producers manage all of the marketing functions at the retail level is a(n):
administered distribution system
Marketing intermediaries who bring buyers and sellers together and help negotiate an exchange without taking title to the goods themselves are ___.
agents or brokers
The primary benefit of ___ is speed.
air transportation
When marketers use telemarketing or catalogs that directly link the manufacturer or intermediaries with the ultimate consumer, they are using a(n) ___ marketing strategy.
direct
A butcher who cuts a larger piece of beef into steaks is an example of ___ utility
form
What type of utility is created when salespeople provide details of their products to customers?
information utility
The distribution strategy that places the product in as many retail outlets as possible is ___.
intensive
When marketers place a product in as many retail outlets as possible they are using a(n) __ distribution strategy.
intensive
Combining multiple modes of transportation to complete a single long-distance movement of freight is known as:
intermodal shipping
Transporting an automobile manufactured in Japan by truck to a dock, then by boat to the United States and then by railroad and truck to an inland city in the United States is an example of __.
intermodal shipping
The activity that controls the planning, implementing, and controlling of the physical flow of materials and information from points of origin to points of consumption to meet customer requirements at a profit is:
logistics
The marketing activity that involves planning, implementing, and controlling the physical flow of materials, finished goods, and information from points of origin to points of consumption to meet customer requirements at a profit is __.
logistics
An advantage of participation in multilevel marketing for those who do the selling is:
low cost of entry
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C) are called ___.
marketing intermediaries
The goal of logistics is to manage the physical flow of materials and information from points of origin to points of consumption:
meeting customer requirements at a profit
Independently owned firms that take title to the goods they handle are known as ___ wholesalers.
merchant
When a firm is independently owned and takes title of the goods they handle, they are said to be __ wholesalers.
merchant
The second-largest surface transportation mode is ___.
motor vehicles
The distribution channel created when independent contractors are recruited by upliners and then recruit downliners, all of whom receive commissions, is called:
multilevel marketing
Retailers who sell goods and services to ultimate consumers over the Internet are engaged in:
online retailing
Small businesses can use nonstore retailing methods such as the Internet to __.
open new channels of distribution
The type of utility that provides fast, friendly service during and after the sale as well as teaching customers to use products over time is ___ utility.
service
When a consumer receives fast and friendly service after purchase, he or she is said to be enjoying ____ utility.
service
The economic term for the want-satisfying ability, or value, that organizations add to goods or services is ___.
utility
When something has the ability to satisfy a want, ability, or value to goods or services it is said to have
utility
What term refers to the added benefits intermediaries provide consumers such as convenience and assortment?
value
A supply chain is also called a ___.
value chain
Location is a big benef it of using __.
vending machines
Select all that apply Retailers can compete with online retailers by using which of the following distribution systems to be more efficient?
1. Corporate 2. Administered 3. Contractual
Select all that apply Which of the following are part of possession utility?
1. Delivery 2. Providing credit 3. Installation
Select all that apply Which seasonal goods would be kept in a storage warehouse from one year to the next?
1. Holiday decorations 2. Snow blowers 3. Lawn mowers
Select all that apply What are two characteristics of sending goods overseas by ship?
1. It is slower than other methods. 2. It is the least expensive method.
Select all that apply Which is true of wholesalers?
1. Selling products to a school or hospital to run their business is considered a wholesale transaction 2. Selling products to specific stores so that each store has its own unique inventory 3. Selling products to a company for internal use in production is wholesaling.
Select all that apply The marketing function that provides place utility or distribution from the producer to the consumer includes which of the following activities?
1. Shipping 2. Inventory management 3. Warehousing
Select all that apply Which two transportation modes are included in the second largest surface transportation mode because of their ability to deliver to more locations?
1. Vans 2. Trucks
Select all that apply The benefits of using vending machines for such products as food and headphones include:
1. convenience 2. location
Select all that apply Small businesses can use nonstore retailing to open new channels of distribution to consumers through:
1. direct marketing 2. electronic retailing 3. direct selling at home or work
Select all that apply The approximately 3.7 million retail stores in the United States:
1. employ more than 40 million people 2. are major employers of marketing graduates
Select all that apply Marketing intermediaries add value and create efficiencies by:
1. reducing the number of exchanges between producers and buyers 2. performing necessary activities such as storage and transportation 3. providing convenience
Select all that apply A large part of the cost of distribution is storage. Storage costs include:
1. the cost of equipment to move goods in the warehouse 2. operating the warehouse facility 3. the cost of the warehouse facility
Select all that apply What are two primary functions of agents and brokers?
1. to bring buyers and sellers together 2. to assist in negotiating an exchange
Select all that apply Pipelines are a useful means of transporting which two products?
1. water 2. petroleum
A manufacturer who assembles the components of a computer for sale is providing which type of utility?
Form
Which type of utility opens two-way flows of information between marketing participants?
Information utility
__ is the selling of goods and services to ultimate consumers over the Internet.
Online retailing
Which method of transportation is the cheapest when sending goods overseas?
Ship
What is the type of nonstore marketing that uses toll-free numbers to supplement online or catalog sales?
Telemarketing
A way that traditional retailers can compete with online retailers is to:
be so efficient they can beat them on cost
Intermediaries who are independent, but agree to cooperate have likely formed a(n) ____ distribution system.
contractual
The type of distribution system in which intermediaries are independent but agree to cooperate are participating in a(n):
contractual distribution system
In a ____, all of the intermediary functions are owned and controlled by the manufacturer.
corporate distribution system
The type of distribution system that is owned by the manufacturer throughout the channel of distribution to the retail stores is a(n):
corporate distribution system
A house party where those invited are sold merchandise such as jewelry, vacuum cleaners, or cosmetics is an example of the type of nonstore retailing known as ___ selling.
direct
A marketing activity such as telemarketing or catalogs that directly links the manufacturer or intermediaries with the ultimate consumer is __.
direct marketing
The type of nonstore marketing that uses personal sales at parties to reach people at home or work is ___.
direct selling
A firm that solicits orders from retailers and other wholesalers and then arranges to have the merchandise shipped directly from the producer to the buyer is likely a(n) shipper.
drop
A wholesaler who solicits orders from retailers and other wholesalers and then arranges to have the merchandise shipped directly from the producer to the buyer is a(n):
drop shipper
If you were choosing a means of transportation for oil, the cheapest and most dependable would be by __.
pipeline
The "P" of marketing, which includes shipping, transportation, storage, and logistics is known as:
place or distribution
An intermediary adds ____ by doing whatever is necessary to transfer ownership from one party to another.
possession utility
When ____ manage all marketing functions at the retail level they are employing a(n) administered distribution system.
producers
A variety of shipping methods are used within the continental United States, but the one that handles the largest volume of goods are
railroads
Which method of transportation carries the largest percentage by volume of all goods shipped within the United States?
railroads
There are approximately 3.7 million __ stores in the United States that sell products to ultimate consumers.
retail
The marketing intermediary who sells to ultimate consumers is a(n)
retailer
___ is an organization that sells to ultimate consumers
retailer
The primary benefit of shipping goods by air is:
speed
Holding goods in a facility or facilities for later distribution is a logistics function known as:
storage
Seasonal goods such as Christmas or Thanksgiving decorations would be held in a(n):
storage warehouse
The entire sequence of linked activities that must be performed by organizations to move goods from the sources of raw materials to the ultimate consumer is a(n):
supply chain or value chain
Many nonstore catalog retailers use ___ to take orders over the phone.
telemarketing or telemarketers
When an individual goes to a supermarket and selects a box of cereal from several choices of type, brand, and size, it is an example of:
the value of marketing intermediaries who provide an assortment
When products are available when they are needed they are said to have ___ utility.
time
Which form of utility is added by marketing intermediaries who make products available when they are needed?
time
Costco and Sam's Club act as both a ____ in the B2B environment and a ____ in the B2C environment.
wholesaler; retailer