INTRODUCTION TO BUSINESS Chapter 13 ASSIGNMENT

What is the cheapest cost mode for transporting goods?

Plane

Define supply chain management.

Planning and coordination the movement pf products along that supply chain, from the raw materials to the final consumers.

Luxury-good providers such as Porsche and Gucci are using what type of strategy?

Product strategy.

Define form utility.

Provides customer satisfaction by converting inputs into finished product.

What is the the most expensive cost for transporting goods?

Rail

Define place utility.

Satisfies customer needs by providing the right product in the right place

What is a Specialty Store? Give an example.

Sells a wide selection of merchandise within a narrow category, such as Auto parts. Example: Auto Zone.

What do the experts predict will occur in the following years?

That annual growth will remain robust in the following years.

Define Physical distribution.

The actual movement of product along that path.

What is the purpose of prestige pricing?

The core goal is to use price to send consumer a message about the high quality and exclusivity.

Define Channel of distribution.

The path that a product takes from the producer to the consumer.

Define market share.

The percentage of a market controlled by a company or a product.

The pace slowed in 2008 with the onset of?

The recession, but it grew in 2009, but at a very slow pace.

What is the main distinction among channel members?

Whether they are retailers or wholesalers.

Define profitability.

a fundamental goal of most businesses

Independent wholesaling businesses account for?

about two-thirds of all the wholesale trade.

What is Physical Distribution strategy?

determining how your product will flow through the channel from the producer to the consumer.

Companies usually express volume goals in terms of

market share

Independent wholesalers fall into two categories, define them:

-Merchant wholesalers, who take legal possession, or title, of the goods they distribute. -Agents/Brokers, who don't take title of the goods.

The distribution strategy has two elements, what are they?

-channel of distribution -physical distribution.

On average, what is the number of different products a grocery store carries?

50, 000 different products

Define logistics.

A subset of supply chain management that focuses largely on the tactics involved in moving products along the supply chain.

Define time utility.

Adds value by making products available and convenient time for consumers.

Define ownership utility.

Adds value by marking it easier for customers to actually possess the goods and services that they purchase.

Define retailers and give one example.

Are the distributors that most of us know and use on a daily basis? Example: Star bucks

Define wholesalers.

Buy products from producer and selling them to business.

What are cash and carry wholesalers? Give one example.

Distributors service customers who are too small to merit in person sales calls from wholesaler reps, Costco and staples.

What is a category killer? Give an example.

Dominates its category by offering a huge variety of one type of product. Example: Best Buy

Online retailing, also known as:

E-tailing and it grew at an astonishing rate in the early 2000s.

Wendy's, who place their stores in as many locations as possible are using what type of strategy?

Emerging strategy

What is everyday-low pricing? Provide an example.

Everyday-low pricing is long-term discount pricing, designed to achieve profitability through high sales volume. Example: Walmart.

What is the goal of the distribution strategy?

Getting the right product to the right person at the right place at the right time.

Define multilevel marketing.

Involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new sales people in return for a percentage of their commissions.

What is Breakeven Analysis?

the process of determining the number of units a firm must sell to cover all costs.