Chapter 13

Middleman

(Marketing intermediary). A marketing organization that links a producer and user within a marketing channel

Public Relations

A broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, bother internal and external

Chain Retailer

A company that operates more than one retail outlet

Carrier

A firm that offers transportation services

Independent Retailer

A firm that operates only one retail outlet

Superstore

A large retail store that carries not only food and nonfood products ordinarily found in supermarkets, but also sells additional product lines such as housewares, hardware, appliances, etc

Warehouse Club

A large scale members only establishment that combines features of cash and carry wholesaling with discount retailing

Supermarket

A large self-service store that sells primarily food and household products

Supply Chain Management

A long term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers

Retailer

A middleman that buys from producers or other middlemen and sells to consumers

Agent

A middleman that expedites exchanges, represents a buyer or seller, and often is hired permanently on a commission basis

Merchant Wholesaler

A middleman that purchases goods in large quantities and sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users

Wholesaler

A middleman that sells products to other firms

Broker

A middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis

Warehouse Showroom

A retail facility that is a large and low cost building, has warehouse materials handling technology, vertical merchandise displays, a large and on premises inventory, and minimal service

Department Store

A retail store that employs more than 25 persons and sells at least home furnishings, appliances, family apparel, and household linens and dry goods, each in a different part of the store

Discount Store

A self-service general merchandise outlet that sells products at a lower than usual price

Distribution Channel

A sequence of marketing organizations that directs a product from the producer to the ultimate user

Lifestyle Shopping Center

A shopping center that has an open air configuration and is occupied by upscale national chain specialty stores

Convenience Store

A small food store that sells a limited variety of products but remains open well beyond normal business hours

Off Price Retailers

A store that buys manufacturers' seconds, overruns, returns, and off season merchandise at below-wholesale prices and sells them to consumers at deep discounts

Category Killer

A very large specialty store that concentrates on a single product line and competes by offering low prices and an enormous number of products

B

A(n) _______________ is described as carrying a select group of products within a single line. a. broker b. specialty-line wholesaler c. limited-line wholesaler d. general-merchandise wholesaler e. agent

Primary Demand Advertising

Advertising aimed at increasing the demand for all brands of a product within a specific industry

Institutional Advertising

Advertising designed to enhance a firm's image or reputation

Selective Demand Advertising

Advertising that is used to sell a particular brand of product

A

All of the following are ways in which supply-chain management encourages cooperation between buyers and sellers, except: a. increases profits for the top channel members. b. reduces the cost of administration. c. reduces the cost of inventory. d. reduces the cost of transportation. e. speeds order-cycle times.

Physical Distribution

All those activities concerned with the efficient movement of products from the producer to the ultimate user

C

Although it is true that _____ can be eliminated, their functions must be passed on to some other entity, such as the producer, another intermediary, or even the customer. a. agents b. producers c. wholesalers d. customers e. retailers

Advertising Agency

An independent firm that plans, produces, and places advertising for clients

Merchant Middleman

An intermediary that actually takes title to products by buying them

Functional Middleman

An intermediary that helps in the transfer of ownership of products but does not take title to the products

Catalog Marketing

An organization provides a catalog from which customers make selections and place orders by mail, phone, or internet

Specialty Line Wholesaler

Carries a select group of products within a single line. Food delicacies such as shellfish, represent a product handled by this type of whole saler

Promotion

Communication about an organization and its products that is intended to inform, persuade, or remind target market members

Order Processing

Consists of activities involved in receiving and filling customers' purchase orders

General Merchandise Wholesaler

Deals in a wide variety of products, such as drugs, hardware, nonperishable foods, cosmetics, detergents, and tobacco

Sorting Goods

Delivered goods may have to be sorted before being stored

Dispatching Shipments

Each shipment is packaged and directed to the proper transport vehicle. Shipping and accounting documents are prepared

E

If the goal is to increase the demand for all brands of a product within a specific industry then what type of advertising should be used? a. Institutional advertising b. Selective-demand advertising c. Comparative advertising d. Immediate-response advertising e. Primary-demand advertising

Community Shopping Center

Includes one or two department stores and some specialty stores, along with convenience stores

Dispatching Goods to Storage

Items must be moved to storage areas, where they can be found later

Recalling, Picking, and Assembling Goods

Items that are to leave the warehouse must be selected from storage and assembled efficiently

Online Retailing

Makes products available to buyers through computer connections

A

Marketers seek to balance _______ costs and _______ costs so that the company always has sufficient inventory to satisfy customer demand, but with little surplus because storing unsold products can be very expensive. a. holding; stock-out b. transportation; warehousing c. materials handling; warehousing d. order processing; stock-out e. holding; carrier

E

Nonstore retailing occurs in all of the following ways, except: a. telemarketing. b. online retailing. c. direct selling. d. automatic vending. e. category killer.

Direct Response Marketing

Occurs when a retailer advertises a product and makes it available through mail, telephone, or online orders

Advertising

Paid nonpersonal message communicated to a select audience through a mass medium

Personal Selling

Personal communication aimed at informing customers and persuading them to buy a firm's products

Television Home Shopping

Presents products to television viewers, encouraging them to order through toll free numbers and pay with credit cards

Identifying Goods

Records are made of the quantity of each item received. Items may be marked, coded, or tagged for identification

Nonstore Retailing

Selling that does not take place in conventional store facilities

Limited Time Wholesaler

Stocks only a few product lines but carries numerous product items within each line

C

Technology has enhanced the implementation of supply-chain management in all of the following ways, except: a. through computerized integrated information sharing, channel members reduce costs. b. as industries transform their processes, the end result is increased productivity. c. through computerized integrated information sharing, channel members can completely eliminate the need for wholesalers. d. firms can take advantage of hundreds of electronic trading communities comprised of businesses selling to other businesses. e. through computerized integrated information sharing, channel members improve customer service.

Materials Handling

The actual physical handling of goods-in warehouses as well as during transportation

Integrated Marketing Communications

The coordination of promotion efforts to ensure maximum informational and persuasive impact on customers

Holding Goods

The goods are protected in storage until needed

Direct Selling

The marketing of products to customers through face to face sales presentations at home or in the workplace

Promotion Mix

The particular combination of promotion methods a firm uses to reach a target market

Telemarketing

The performance of marketing related activities by telephone

Inventory Management

The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stockout costs

Warehousing

The set of activities involved in receiving and storing goods and preparing them for reshipment

Transportation

The shipment of products to custoemrs

Sales Promotion

The use of activities or materials as direct inducements to customers or salespersons, which can add value to the product and increase the customer's incentive to make a purchase

Intensive Distribution

The use of all available outlets for a product

Automatic Vending

The use of machines to dispense products

Selective Distribution

The use of only a portion of the available outlets for a product in each geographic area

Exclusive Distribution

The use of only a single retail outlet for a product in a large geographic area

Direct Marketing

The use of the telephone, internet, and nonpersonal media to communicate product and organizational information to customers, who then can purchase products via mail, telephone, or the internet

Receiving Goods

The warehouse accepts delivered goods and assumes responsibility for them

Traditional Specialty Store

This carries a narrow product mix with deep product lines. (Ex. Foot Locker, or Bath and Body Works

Neighborhood Shopping Centers

Typically consist of several small convenience and specialty stores

Regional Shopping Centers

Usually has large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels

D

What are the four most common types of shopping centers? a. Warehouse clubs, superstores, convenience stores, and discount stores b. Catalog marketing, online retailing, telemarketing, and automatic vending c. Off-price retailers, superstores, warehouse showrooms, and supermarkets d. Lifestyle, neighborhood, community, and regional e. Direct selling, department stores, category killers, and direct-response marketing

E

What does integrated marketing communications foster? a. Stockouts and excessive inventory b. Transportation modes and warehousing c. More mass-media advertising d. Deep discount retailers and the elimination of wholesalers e. Long-term customer relationships and efficient use of promotional resources

B

What is the goal of materials handling? a. Minimize time spent sorting delivered products b. Minimize the number of times a product is handled c. Minimize the number of times a product is transported d. Minimize the time spent coding and tagging products e. Minimize length of time product is held in storage

C

What is the major goal of integrated marketing communication? a. To reduce the number of staff needed for promotion b. To lengthen the time a product spends in the maturity stage c. To send a consistent message to customers d. To tell customers what they want to hear to continue buying the product e. To maximize product profits

A

When developing an advertising campaign, an organization generally decides which media (TV, radio, Internet, social media, etc.) will be used during which step? a. Develop the media plan (step 5) b. Create the advertising message (step 6) c. Create the advertising platform (step 3) d. Execute the campaign (step 7) e. Define the advertising objectives (step 2)

A

Which element of the promotion mix uses activities or materials as direct inducements to customers? a. Sales promotion b. Public relations c. Advertising d. Personal selling e. Physical distribution

E

Which is the best definition of a middleman (or marketing intermediary)? a. Long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers. b. A sequence of marketing organizations that directs a product from the producer to the ultimate user. c. A person that specializes in a particular commodity, represents either a buyer or seller, and is likely to be hired on a temporary basis. d. A person that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis. e. A marketing organization that links a producer and user within a marketing channel.

E

Which of the following is NOT a common activity of warehousing? a. Recalling, picking, and assembling goods b. Dispatching goods to storage c. Sorting goods d. Dispatching shipments e. Shipment of goods to customers

C

Which of the following is a primary disadvantage of using magazine advertising? a. Requires large space to be noticed b. Geographic selectivity c. 30- to 90-day average lead time d. Large time commitment to monitor e. Lack of creativity

D

Which of the following is considered a shopping product that consumers buy only after comparing price, quality, and style and thus would utilize selective distribution? a. Yachts b. Bread c. Grand pianos d. Automobiles e. Magazines

C

Which of the following is not considered an element of the promotion mix? a. Public relations b. Advertising c. Physical distribution d. Personal selling e. Sales promotion

D

Which of the following modes of transportation is most likely to be used for high-value, perishable goods that are needed immediately? a. Railroads b. Waterways c. Trucks d. Airplanes e. Pipelines

A

Which of the following types of retail stores is best described as a large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing? a. Warehouse club b. Category killer c. Traditional specialty store d. Off-price retailer e. Warehouse showroom

E

Which of the six distribution channels is commonly known as the traditional channel because it is used for many consumer goods (especially convenience goods)? a. Producer to retailer to consumer b. Producer to organizational buyer c. Producer to consumer d. Producer to agent to wholesaler to retailer to consumer e. Producer to wholesaler to retailer to consumer

Retailers

Wholesalers help ______________ by: Buying in large quantities and selling to retailers in smaller quantities and delivering goods to retailers Stocking in one place the variety of goods that retailers otherwise would have to buy from many producers Providing assistance in other vital areas, including promotion, market information, and financial aid

Manufacturers

Wholesalers help ________________ by: Performing functions similar to those provided to retailers Providing a sales force, reducing inventory costs, assuming credit risks, and furnishing market information

Step 6

___________ ____ in advertising: Create the advertising message

Step 3

___________ ____ in advertising: Create the advertising platform

Step 2

___________ ____ in advertising: Define the advertising objectives

Step 4

___________ ____ in advertising: Determine the advertising appropriation

Step 5

___________ ____ in advertising: Develop the media plan

Step 8

___________ ____ in advertising: Evaluate advertising effectiveness

Step 7

___________ ____ in advertising: Execute the campaign

Step 1

___________ ____ in advertising: Identify and analyze the target audience

Intensive

_____________ distribution is often used for things such as candy, gum, sodas, etc.

Selective

_____________ distribution is often used for things such as furniture, home appliances, or clothing

Exclusive

_____________ distribution is often used in sales of expensive items such as fine china or jewelry