Ch 15 SmartBook Assignment

The primary functions of agents and brokers are to:

- bring buyers and sellers together - assist in negotiating an exchange

Marketing intermediaries who never take title to the goods they handle are:

- brokers - agents

The benefits of using vending machines for such products as food and headphones include:

- convenience - location

Small businesses can use nonstore retailing to open new channels of distribution to consumers through:

- direct marketing - direct selling at home or work - electronic retailing

Merchants who are limited-function wholesalers include:

- drop shippers - rack jobbers - cash-and-carry wholesalers

The benefits of using a selective distribution strategy include:

- ensuring producers of a quality sales force - ensuring producers of quality service for customers

An important difference between agents and brokers and merchant wholesalers is that:

agents and brokers do not take title to the goods they handle

Marketing intermediaries who bring buyers and sellers together and help negotiate an exchange without taking title to the goods themselves are:

agents or brokers

Marketing intermediaries were once called middlemen because they:

assist in moving goods and services from producers to users in B2B and B2C markets

The type of distribution system in which intermediaries are independent but agree to cooperate are participating in a(n):

contractual distribution system

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

The type of nonstore marketing that uses personal sales at parties to reach people at home or work is:

direct selling

When a firm is independently owned and takes title of the goods they handle, they are said to be _____ wholesalers.

merchant

Doing whatever is necessary to transfer ownership from one party to another is _____ utility.

possession

Successfully transferring ownership of a good is considered _____ utility.

possession

Holding goods in a facility or facilities for later distribution is a logistics function known as:

storage

Holding goods in a facility or facilities for later distribution is a logistics function known as _____.

storage or warehousing

A _____ sells mostly food and other nonfood products such as cleaning supplies and paper products without requiring a membership fee.

supermarket

Intermediaries add costs to products, but they also add _____ such as convenience and assortment.

values or value

A _____ _____ is a retailer that sells general merchandise and food in large facilities that may require a membership fee to shop there.

warehouse club

A franchise system such as McDonald's is an example of a(n) _____ distribution system.

contractual

Intermediaries who are independent, but agree to cooperate have likely formed a(n) _____ distribution system.

contractual

True or false: Agents and brokers always take title to the goods.

False Reason: Agents and brokers bring buyers and sellers together, but do not take title to the goods.

True or false: The area of logistics that brings goods back to the manufacturer because of defects or for recycling is inbound logistics.

False Reason: Inbound logistics brings materials from suppliers to producers, who then transform them into goods for consumption.

Which type of utility opens two-way flows of information between marketing participants?

Information utility

______ are named as such because they're in the middle of a series of organizations that join together to help distribute goods from producers to consumers.

Marketing intermediaries

The function of distribution is represented in the 4 P's of the marketing mix as _____ utility.

Place

Which of the following is true about marketing intermediaries:

Real estate agents make the process of selling your home easier

Which type of utility provides fast, friendly assistance during and after a sale, as well as offering training in product usage over time?

Service utility

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

An establishment that carries a wide variety of products such as clothes, furniture, and housewares, usually at higher prices than discount stores is called a _____ store.

department

Catalog sales and online sales are activities of _____ marketing because they link ultimate consumers to manufacturers.

direct

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

When marketers use the internet to sell goods and services, they are participating in _____ retailing.

electronic, online, or nonstore

The retail distribution strategy that sends products to only one retail outlet in a geographic area is:

exclusive

A warehouse club is a retailer that sells:

food and general merchandise and may require payment of a membership fee to shop there

A person responsible for bringing raw materials, packaging, other goods and services, and information from suppliers to producers is working in the field of _____ logistics.

inbound

The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers is _____ logistics.

inbound

Opening two-way communication between marketing participants provides _____ utility.

information

The distribution strategy that places the product in as many retail outlets as possible is:

intensive

The distribution strategy that puts the product into as many outlets as possible is a(n) _____ distribution strategy.

intensive

Selling goods and services to ultimate consumers over the Internet is known as _____ retailing.

online or electronic

Small businesses can use nonstore retailing methods such as the Internet to:

open new channels of distribution

True or false: Corporate, contractual, and administered distribution systems allow traditional retailers to compete with online retailers successfully.

True Reason: Corporate, contractual and administered distribution allow retailers to be more efficient and thus more competitive with online retailers.

True or False: 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 department store is a retailer that sells:

a wide variety of goods such as furniture, clothing, and housewares in separate departments

Logistics 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 _____ for companies.

profit

A variety of shipping methods are used within the continental United States, but the one that handles the largest volume of goods are

railroads

The method of transportation that carries the largest percentage by volume of all goods shipped within the United States is _____.

railway, rail, railroad, railways, railroads, trains, or train

A challenge for marketers is to recall that _____ is part of the supply chain, although only half of the waste products are re-used.

recycling

There are approximately 3.7 million _____ stores in the United States that sell products to ultimate consumers.

retail

The retail distribution strategy that sends products to only a few preferred retailers in an area is:

selective distribution

A benefit of using a(n) _____ distribution strategy is that producers are ensured of quality sales and service.

selective or exclusive

When a consumer receives fast and friendly service after purchase, he or she is said to be enjoying _____ utility.

service

Sending goods by ship is the least expensive way to transport, but the drawback is that it is _____.

slow or slower

Due to high costs, only a small proportion of shipping goes by air. However, its primary benefit is _____.

speed

Many nonstore catalog retailers use _____ to take orders over the phone.

telemarketing or telemarketers

The utility provided to customers by selling frozen strawberries all year around is _____ utility.

time, place, or frozen

Retailers can compete with online retailers by using which of the following distribution systems to be more efficient?

- Contractual - Administered - Corporate

Which of the following would be kept in a storage warehouse from one year to the next?

- Lawn mowers - Holiday decorations - Snow blowers

When a supermarket has frozen peas in the Northeast in January, it is an example of which types of utility?

- Place - Time

A full-service wholesaler provides which of the following functions?

- Provides capital and credit - Provides a sales force - Assumes risk by taking title

Which of the following are part of possession utility?

- Providing credit - Installation - Delivery

Discount stores generally

- Sell many different products but at lower prices - sell products that are priced below those of department stores

Which is true of wholesalers?

- Selling products to a company for internal use in production is wholesaling. - Selling products to specific stores so that each store has its own unique inventory - Selling products to a school or hospital to run their business is considered a wholesale transaction

Which are included in the second largest surface transportation mode because of their ability to deliver to more locations?

- Vans - Trucks

The marketing function that provides place utility or distribution from the producer to the consumer includes which of the following activities?

- Warehousing - Inventory management - Shipping

Match the type of retail store in the left column with the correct example from the right column. 1. Department store 2. Discount store 3. Supermarket 4. Warehouse club 5. Convenience store 6. Category killer

1. Category killer 2. Walmart, Target 3. Safeway, Albertson's, Wegman's, Kroger's, Publix 4. Costco, Sam's Club 5. 7-11 6. Staples, Office Depot, Bass Pro Shops

Match the type of limited-function wholesaler on the left with the functions they perform from the column on the right. 1. Rack jobbers 2. Cash-and-carry 3. Drop shippers

1. Furnish shelves full of merchandise and set up displays 2. Offer limited assortments to retailers to be paid for and taken at time of purchase 3. Arrange shipment directly from producers to buyers

Wholesalers who perform only a few functions but do them especially well are:

limited-function wholesalers

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

Pipelines are a useful means of transporting oil because they:

- are cheap - are fast

The approximately 3.7 million retail stores in the United States:

- are major employers of marketing graduates - employ more than 40 million people

Traditional store retailers were used to shipping from manufacturers to warehouses to the retail store, except for large purchases such as furniture. They have had to:

- outsource distribution functions to specialists such as FedEx and UPS - develop systems to deliver directly to customers' homes

Those in the supply chain who provide goods to consumers include:

- parts suppliers - manufacturers - farmers

Marketing intermediaries add value and create efficiencies by:

- performing necessary activities such as storage and transportation - providing convenience - reducing the number of exchanges between producers and buyers

Electronic retailing has changed the way consumers shop by:

- providing 24/7 access to information - offering more information and choices - offering shop from home convenience

Supply-chain management adds value to the channel of distribution by:

- providing an overview of the entire supply chain - lowering costs

Materials handling is the movement of goods:

- within a warehouse - to workstations in the factory - from warehouse to factory floor

To adjust to the demand for shipping to individual customers, traditional stores have created partnerships with logistics companies such as _____ and _____.

1: FedEx 2: UPS

Marketing intermediaries who bring buyers and sellers together and help negotiate an exchange without taking title to the goods themselves are _____ or _____.

1: agents 2: brokers

A wholesaler who would most likely arrange a shipment of lumber for a new building would be a _____ _____.

1: drop 2: shipper

The transformation of raw materials, parts, and other inputs into finished goods such as shoes, cars, or clothes is done by _____ _____.

1: factory 2: processes

Supply-chain management adds value by increasing efficiencies and coordinating activities from the source of raw materials to completion of the _____ _____ and returns or recycling if necessary.

1: finished 2: product or goods

A merchant who performs all of the service functions is know as a(n) _____-_____ wholesaler.

1: full 2: service

Intermediaries who take title to goods, but do not perform all typical functions are called _____-_____ wholesalers.

1: limited 2: function

A person responsible for the movement of goods within a warehouse or on the factory floor to specific workstations is working in the field of _____ _____.

1: materials 2: handling

The second-largest surface transportation mode is _____ _____.

1: motor 2: vehicles or vehicle

The three common types of limited function wholesalers are _____ jobbers, _____-and-carry wholesalers and _____ shippers.

1: rack 2: cash 3: drop

Electronic retailing has become closely connected with and influenced by consumers' use of _____ _____.

1: social 2: media

The _____ _____ includes all of those activities that must be performed to move goods and services from the source of raw materials to the final consumer.

1: supply 2: chain

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 called a(n) _____ _____.

1: supply or value 2: chain

Staples acts both as a _____ in the B2B environment and as a _____ in the B2C environment.

1: wholesaler 2: retailer

True or false: Recycling is not considered to be part of the supply-chain process.

False Reason: The supply-chain process does not end until products are used up or recycled into other products.

A manufacturer who assembles the components of a computer for sale is providing which type of utility?

Form

A discount store is one that sells:

a wide variety of products at prices lower than department stores

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(n) _____ distribution system is one where all of the marketing functions at the retail level are managed by the producer.

administered

When producers manage all marketing functions at the retail level they are employing a(n) _____ distribution system.

administered

In a _____ distribution system, all of the intermediary functions are owned and controlled by the manufacturer.

corporate

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

Using personal sales at parties to reach people at home or work is known as _____ selling.

direct

When marketers send products to only one retail outlet in a given region, they are using a(n) _____ distribution strategy.

exclusive

When raw materials, parts, and other inputs are changed into finished goods such as shoes and cars, it is done by:

factory processes

A butcher who cuts a larger piece of beef into steaks is an example of _____ utility.

form

When marketers place a product in as many retail outlets as possible they are using a(n) _____ distribution strategy.

intensive

When a firm decides to combine multiple modes of transportation to complete a single long-distance movement of freight, _____ shipping is being used.

intermodal

Combining multiple modes of transportation to complete a single long-distance movement of freight is known as:

intermodal shipping

A major benefit of using vending machines to reach consumers is _____.

location, place, or convenience

A person responsible for planning, implementing, and controlling the physical flow of materials and information from points of origin to points of consumption to meet customer requirements at a profit is working in the field of _____.

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

Warehouse clubs and discount stores are similar in that both offer discounted pricing, however, in a warehouse club _____ may be required.

membership or memberships

Independently owned firms that take title to the goods they handle are known as _____ wholesalers.

merchant

The organizations that move goods and services between producers and those who use the products and services are called marketing intermediaries or _____.

middlemen

A supermarket is a store that sells:

mostly food items along with cleaning and paper products

The distribution channel created when independent contractors are recruited by upliners and then recruit downliners, all of whom receive commissions, is called:

multilevel marketing

Vending machines, kiosks, and the internet are forms of _____ retailing that enable small businesses to reach people at all hours.

nonstore

The area of logistics involved in managing the shipment of shoes to a retailer is _____ logistics.

outbound

The area of logistics that manages the flow of finished products and information to business buyers and ultimate consumers is:

outbound logistics

If you were choosing a means of transportation for oil, the cheapest and most dependable would be by _____.

pipeline or pipelines

The marketing intermediary who sells to ultimate consumers is a(n) _____.

retailer

Marketing intermediaries who sell to ultimate consumers are:

retailers

The primary benefit of shipping goods by air is:

speed

A _____ warehouse is used to hold products for a relatively long time.

storage

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

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

A website that is available 24/7 provides customers with _____ utility.

time