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