Marketing Test 4

What is the reorder point if the usage rate is 10 units per day, the order lead time is 5 days, and the safety stock is 30?

80

What is the primary difference between an agent and a broker?

An agent represents a company on a permanent basis while a broker is employed temporarily.

Which of the following is the most commonly used channel for distributing business products?

Industrial distributors, organizational buyers

Which of the following is the least flexible of these important retailing strategy issues?

Location

Which of the following services would a wholesaler least likely provide to a manufacturer?

Look for and coordinate supply sources

____________ provide an effective method of selling small items to customers in remote areas that other wholesalers might find unprofitable to serve.

Mail-order wholesalers

Sally McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sally does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

Merchant wholesaler

During the introduction stage of the product life cycle, which type of promotion would a firm focus on?

Pioneer

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channels are these manufacturers most likely to use?

Producer, wholesaler, retailer, consumer

Due to their size, Wal-Mart is most likely to participate in which of the following channels?

Producers, retailers, consumers

Through the years, drugstores have added more unrelated products to their product mix such as lawn care supplies, food items, housewares, and small appliances. This illustrates which of the following retail strategy issues?

Scrambled merchandising

Which of the following is an example of a category killer?

Toys R Us

Which major mode of freight transportation provides the most flexible schedules and routes?

Trucks

Select the true statement about wholesaling.

Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved

A general merchandise retailer offers:

a variety of product lines that are stocked in depth

Kolder Inc. is using a new just-in-time inventory management system which requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the __________ mode of transportation despite its expense.

airways

Physical distribution functions influence:

all elements of the marketing mix

ATMs are an example of:

automatic vending

Promotion tends to:

capitalize on existing needs

The basic function of promotion is:

communication

Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ___________ with independent Goodyear dealers.

conflict

In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) __________ vertical marketing system.

contractual

The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to:

cooperate and accommodate one another's needs

The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n):

corporate vertical marketing system

Compared with other types of retailers, department stores compete mainly on the basis of:

customer services

The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The Postal Service works to reduce:

cycle time

The main objective of physical distribution should be to:

decrease costs while increasing service

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and _________ is becoming blurred.

department stores

Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on advertising:

distributor incentives

Many companies use more than one marketing channel to distribute their product to the same target market, a tactic called:

dual distribution

The three major levels of intensity at which a company can choose to distribute its products are __________ distribution.

exclusive, selective, and intensive

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a:

general merchandise wholesaler

At the annual managers' planning conference, Jacques Ingram asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customers orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service.

higher warehousing costs

Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel __________ in the distribution channel.

leadership

PecanTree is a wholesaler that sells only varieties of pecans to its customers, which makes this business a:

limited-line wholesaler

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called:

manufacturers' agents

Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is:

materials handling

The wheel-of-retailing hypothesis suggests that:

new retailers enter the marketplace with low prices, low profit margins, and low status but eventually move to the high end of the price/ cost/ service scale

Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are ___________ retailers

non store

Selective demand is demand for a:

particular brand

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is:

personal selling

Marketing channels create 4 types of utility for consumers including:

place, time, possession, form

If the push policy is used in promoting a product, the firm:

promotes only to the next marketing institution down the marketing channel

Advertising, personal selling, sales promotion, and public relations are called:

promotion mix ingredients

Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called:

rack jobbers

A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a:

regional shopping center

Traditional shopping centers include:

regional, neighborhood, and community

The elimination of marketing intermediaries:

requires that the services they provide to be performed buy someone else in the marketing channel

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n):

retailer

When Sally buys Clorox bleach for her home using a channel with only one intermediary, that intermediary is classified as a:

retailer

The cost of ________ is usually substantially lower than the cost of _________.

retaining existing customers; acquiring new customers

The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to higher interest rates. The management decides to use ___________ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers.

sales branches

When McDonald's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing:

sales promotion

Durable goods such as television sets and DVD players generally reach their target markets through:

selective distribution

A major goal of integrated marketing communications is to:

send a consistent message to customers

A narrow product mix with a deep product line would most likely be carried by:

specialty retailers

Tying agreements occur when a:

supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

The notion of physical distribution is:

the movement of products from producers to end users

Wholesaling can be defined as:

transactions in which products are bought for resale

What is the most expensive physical distribution function?

transportation