BUS 12: CH 15: Interactive Presentations

Selling goods and services online is called

electronic retailing.

Drop shippers solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer. Drop shippers provide

possession

The want-satisfying ability, or value, that organizations add to goods or services when the products are made more useful or accessible to consumers is calle

utility

Which of the following is considered a nonstore retail outlet?

vending machines

The marketing intermediaries that sell to businesses and retailers but rarely sell to the final consumer are called

wholesalers

Unlike most merchant wholesalers, agents and brokers

.do not hold title to the products they sell.

_____ are marketing intermediaries that solicit orders from retailers and have the products delivered directly from the producer to the retailer.

Drop shippers

Liliana needs to furnish her new apartment. She found all the items she wanted on the manufacturer's website and can save over $500 buying directly from the manufacturer. What might deter Liliana from buying directly from the manufacturer?

The price she will pay for shipping the furniture may be higher than the money she saved.

Which of the following is a type of contractual distribution system?

a franchise system

The distribution system in which the same company handles all of the manufacturing, shipping and retailing of the company's products is called a(n) __________ distribution system.

corporate

When the manufacturer handles all of the marketing functions for its retailers, such as providing displays, pricing guidelines, inventory control and promotional tools the company is using a(n) _________ system to distribute its products.

corporate distribution supply chain management administered distribution retail cooperative distribution

Industrial Specialists, Inc. sells office equipment to small businesses. Most of its sales takes place after customers receive catalogs by mail or after successful cold-calling. Industrial Specialists uses the non-store retailing technique known as _______ marketing.

direct

Rolls Royce is one of the most expensive cars in the world. The company typically authorizes only a single dealership in a particular metropolitan area to sell its cars. The distribution strategy that Rolls Royce uses is called _______ distribution.

exclusive

Most merchant wholesalers fall into one of two basic categories:

full service merchant and limited- function

Convenience goods need to be easily available to the consumer, so the best type of distribution strategy for this category of products would be _______ distribution.

intensive

The three major categories of retail distribution are

intensive, selective, and exclusive.

______ assist in the movement of goods and services from producers to industrial and consumer users.

marketing intermediaries

All of the following statements about marketing intermediaries are true EXCEPT

marketing intermediaries and their functions can be eliminated without significant consequence.

In _______ firms pay commissions to salespeople for the products they sell, as well as on products sold by other salespeople they recruit.

multilevel marketing

Molina is stacking Blue Onion salad dressing on the shelves of several local supermarkets. She sells all of it on consignment, sharing the profits with the retailers. Molina is a

rack jobber.

A marketing intermediary that sells directly to consumers is called a

retailers

______ sell goods and services directly to the consumer.

retailers

A(n) ______ distribution strategy would be the best choice for distributing designer products such as those offered by Polo Ralph Lauren, Gucci and Armani.

selective

All of the organizations that participate in the movement of material from the sources of raw materials to the ultimate consumers form a

supply chain. wholesaler network. marketing intermediary network. retail chain.

Cold-calling potential customers is a form of nonstore retailing known as

telemarketing.

Many gas stations offer gas, convenience goods, directions, coffee and hot dogs 24/7. As such, these retailers are adding _______ utility to the products.

time

Jiffy Mart provides 24-hour shopping in convenient locations throughout the U.S. What two types of utilities is this marketing intermediary providing to its clients?

time and place

The types of utility provided by marketing intermediaries include

time, place, possession, and information.