True/False 3
discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities
true
during the production era a company focuses on production because few products are available in the market
true
electronic shopping which puts catalogs on cable tv or internet websites got off to a slow start but is making headway now
true
exclusive distribution is more likely to involve a written agreement than is selective or intensive distribution
true
exclusive distribution is selling through only one middleman in each geographic area
true
finding competitive advantage is important because they are needed for survival in increasingly competitive markets
true
firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle when profits are highest
true
firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution
true
good market segments should be homogeneous (similar) within and heterogeneous (different) between substantial and operational
true
how quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product
true
ideal market exposure should make a product widely enough available to satisfy target customers needs but not exceed them
true
in addition to food warehouse clubs carry homogenous shopping goods
true
in both a chain of supply and a channel of distribution the primary aim should be to create maximum value for the customer
true
industry profits usually decline steadily during the market mature stage of the product life cycle
true
intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock and/or sell the product
true
just in time delivery reduces storing and handling costs for business customers
true
large sales volume and efficient operation are usually very important for supermarkets since net profits usually run 1% of sales or less
true
limited function wholesalers provide only some of the wholesaling functions
true
manufacturers agents are usually much less expensive than a company own sales force in market areas where sales potential is low
true
manufacturers agents do not take title to the products they sell and are paid a commission on sales
true
mass-merchandisers have proved to be effective competitors in taking away department store customers
true
mass-merchandisers may have reached the market maturity stage of their life cycle since industry profits are declining
true
merchant wholesalers account for over 50% of all wholesalers
true
merchant wholesalers who take the title to the products they sell are the most common type of wholesaling establishment
true
most traditional channel systems don't have a channel captain
true
offering superior customer value is especially important when competition is intense
true
organizations that adopt the marketing concept should be concerned about marketing ethics as well as broader issues of social responsibility
true
positioning shows how proceed and/or present are located in a market as seen by customers
true
private warehouses (compared to public warehouses) are most appropriate when a firm has a regular need to store a large quantity of goods
true
product life cycles describe industry sales and profits within a particular product-market and not the sales and profits of individual products or brands
true
regrouping actives involve adjusting the quantities and/or assortments of products handled at each level in a channel of distribution
true
retailers who carry any product line that will sell profitably are practicing scrambled merchandising
true
sales growth is faster when a new product is easy to use and its advantages are easy to communicate
true
sales growth is faster when the product can be used on a trial basis
true
scrambled merchandising means mixing product lines for higher profits
true
selling direct-to-customers is more common with business products than consumer products
true
some firms are forced to use direct distribution when they can't find middlemen willing to carry innovative new products
true
specialty shops are limited-line stores which aim at a carefully defined target market with a unique product assortment, good service, and knowledgable salespeople
true
strategic planning is the managerial process of developing and maintaining a match between an organizations resources and its market opportunities
true
the "wheel of retailing" theory fails to explain some major retailing developments such as vending machine and convenience food stores
true
corporate chains are taking a smaller percentage of retail sales now that consumers are demanding lower prices
false
department stores are stores which usually try to service customers seeking a variety of convenience products
false
department stores keep growing in numbers, sales, and market share
false
discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products
false
A consumers choice of a retail store appears to be based almost entirely on economic needs
false
a retailer that buys from a rack jobber needs to have an employee who is a specialist in the products the rack jobber handles
false
according to our class discussion its best for the channel captain to be a producer rather than a wholesaler or retailer
false
adopting the marketing concept rarely requires any change in a firms attitudes organization structure or management methods and procedures
false
agent middlemen do not own the products they sell, but they usually perform even more functions than a service wholesaler
false
aggressive, market-oriented middlemen are almost always available and eager to handle the distribution of innovative new products
false
bulk-breaking means separating products into grades and qualities desired by different target markets
false
cash and carry wholesalers do not deliver products or grant credit but their costs are high relative to other types of wholesalers because of all the other services they provide to small retailers
false
compared to intensive distribution selective distribution gives a producer a greater opportunity for profit but it usually makes it more difficult for middlemen to make a profit
false
discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy larger quantities of a small assortment of products
false
during the marketing company era the total company effort is guided by the idea that customers exist to buy the firms output
false
during the various stages of the product life cycle the attitudes and needs of target customers do not change
false
intensive distribution is selling though only those middlemen who will give the product special attention
false
its usually possible for a consumers get much more information about a product in a retail store than on the web
false
manufacturers agents are mainly used as an inexpensive way to continue getting sales for a product once a company own sales force has successfully introduced it to the market
false
manufacturers agents sell related products for several competing manufacturer
false
manufacturers agents try to work for one producer at a time so they can devote all their energies to that producers products
false
mass marketing means focusing on some specific customers as opposed to assuming that everyone is the same and will want whatever the firm offers
false
most marketing functions can be shared in a channel but they storing function is almost always handled by the producer
false
retailers and their strategies can easily be classified based on the type of merchandise they sell
false
retailing includes all of the activities involved in reselling goods to final consumers but it does not include the sale of services to final consumers since services must be produced
false
reverse channels are used when dual distribution fails
false
reverse channels may provide a way to retrieve unwanted products from middlemen, business customers, or final consumers
false
sales growth is usually faster when the product is incompatible with the past values and experience of the target market
false
scrambled merchandising refers to the practice of conventional retailers handling many of these products have to be sold at a low profit
false
selective distribution is growing in popularity because it provides 100% coverage of the market
false
storing provides place, possession, and form utility
false
supercenters are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find
false
the chain of supply concept refers to the idea that distribution can usually be reduced if the firm that is the weakest link in the channel of distribution is eliminated
false
the development of marketing middlemen in central markets increases the total number of transactions necessary to carry out exchange between producers and consumers
false
the four Ps of marketing mix are people, products, price, and promotion
false
the major advantage of vending machine retailing is that the costs are low relative to the volume they sell
false
the marketing concept means that a firm emphasizes attracting new customers above all other objectives
false
the probable length of the product lifecycle has little effect on strategy planning
false
the sale of candy from a vending machine at a bus station is not considered retailing since no store is involved
false
the smaller the comparative advantage of a new product over those already on the market the faster its sales will grow
false
the term chain of supply can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm)
false
voluntary chains are retailer sponsored groups and cooperative chains are wholesaler sponsored groups which work together to better compete with corporate chains
false
when a warehouse is rearranged to speed up order processing "regrouping activities" are being performed
false
differentiation often requires a firm to fine-tune its marketing mix to meet the specific needs of its target market(s)
treu
In an indirect channel of distribution both vertical and horizontal conflict may arise
true
Manufacturers are sometimes forced to use dual distribution because their present channels are doing a poor job or are not reaching some potential customers
true
Place is concerned with the selection and use of marketing specialists middlemen and facilitators to provide target customers with time, place, and possession utilities
true
Social class appeal is one of the emotional needs that seems to affect a consumers choice of a retail store
true
a brokers product is market information
true
a chain of supply includes all the activities involved in procuring materials transforming them into products and distributing them to customers
true
a channel Capitan is a manager who helps direct the actives of a whole channel
true
a channel of distribution is part of a broader network of relationships is called a chain of supply
true
a channel of distribution is part of a chain of supply
true
a consumer who went to shop a super center would probably expect not only to be able to buy food and health care products, but also to leave dry-cleaning or have shoes repaired
true
a good market segment should be composed of people who are homogeneous as possible with respect to their likely responses to marketing mix variables
true
a hardware wholesaler that buys nails from a manufacturer and then sells them to retail hardware stores is a merchant wholesaler
true
a manufacturer may be forced to use dual distribution because a big retail chain wants to deal directly with it instead of wholesalers
true
a manufacturer that uses several competing channels to reach the same target market is using "dual distribution"
true
a manufacturers agent represents a manufacturer in some specified geographic area while selling agents usually handle the entire output of one or more producers
true
a marketing strategy is composed of two interrelated parts a target market and a marketing mix
true
a producer who wants to reach certain customers may have no choice about which wholesaler to use
true
a selling agent takes over the whole marketing job of producers not just the selling function
true
a substantial market segment is one which is big enough to be profitable
true
a wholesaler might help a producer by reducing the producers need to carry large inventory stocks
true
a wholesaler might help a producer by reducing the producers needs for market research
true
accumulating involves collecting products from many small producers often as a way to get lower transportation rates
true
all types of retailers are now establishing a presence on the internet
true
although the customer should be the target of all marketing efforts customers are not part of a marketing mix
true
although wholesalers no longer dominate channels in the US they do provide a necessary function and have survived because of new management and new techniques
true
any contractual channel system by definition is also an administered channel system
true
assorting additives involve putting together a variety of products to give a target market what it wants
true
because middlemen are closer to the final user they are in an ideal position to assume the channel captain role
true
brokers usually have a temporary relationship with the buyer and seller
true
convenience food stores now compete with grocery stores, gas stations, and fast-food outlets
true
cooperative chains are retailer sponsored groups formed by independent retailers to run their own buying organizations
true
customer satisfaction is the extent to which a firm fulfills a consumers needs, desires, and expectations
true
customer value is the difference that a customer sees between the benefits of a firms offering and the costs of obtaining those benefits
true
differentiation emphasizes uniqueness rather than similarity
true
the "wheel of retailing" theory says that new retailers enter the market as high-status, high margin, high-price operators and then evolve into discount stores as competition becomes more intense
true
the growth of cooperative chains of retail stores is due to the desire of small retailers to achieve some benefits of large scale corporate chains
true
the internet is making it possible for firms to reach customers that were impossible to reach before
true
the main function of a distribution center is to speed the flow of goods and avoid unnecessary storage
true
the market introduction stage of product life cycle is usually marked by losses as money is being invested in the hope of future profits
true
the most important reason to use indirect channels is if middlemen can help serve customer better and at a lower cost
true
the place decisions are concerned with getting the right product to the target market at the right time
true
the product life cycle concept applies to retailers as well as products
true
the product life cycle is the four stages a new product idea goes through from beginning to end
true
the product that brokers sell is information about what buyers need and what supplies are available
true
the stage of product life cycle in which competitors are most likely to introduce product improvements is the market growth stage
true
wholesaling has adopted new strategies and big changes are underway even though they may be invisible to consumers
true