True/False 3

Ace your homework & exams now with Quizwiz!

discrepancies of quantity occur because individual producers want to produce large quantities of products while individual consumers prefer to buy products in small quantities

true

during the production era a company focuses on production because few products are available in the market

true

electronic shopping which puts catalogs on cable tv or internet websites got off to a slow start but is making headway now

true

exclusive distribution is more likely to involve a written agreement than is selective or intensive distribution

true

exclusive distribution is selling through only one middleman in each geographic area

true

finding competitive advantage is important because they are needed for survival in increasingly competitive markets

true

firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle when profits are highest

true

firms that use direct distribution can usually adjust their marketing mixes faster than firms that use indirect distribution

true

good market segments should be homogeneous (similar) within and heterogeneous (different) between substantial and operational

true

how quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product

true

ideal market exposure should make a product widely enough available to satisfy target customers needs but not exceed them

true

in addition to food warehouse clubs carry homogenous shopping goods

true

in both a chain of supply and a channel of distribution the primary aim should be to create maximum value for the customer

true

industry profits usually decline steadily during the market mature stage of the product life cycle

true

intensive distribution is selling a product through all responsible and suitable wholesalers or retailers who will stock and/or sell the product

true

just in time delivery reduces storing and handling costs for business customers

true

large sales volume and efficient operation are usually very important for supermarkets since net profits usually run 1% of sales or less

true

limited function wholesalers provide only some of the wholesaling functions

true

manufacturers agents are usually much less expensive than a company own sales force in market areas where sales potential is low

true

manufacturers agents do not take title to the products they sell and are paid a commission on sales

true

mass-merchandisers have proved to be effective competitors in taking away department store customers

true

mass-merchandisers may have reached the market maturity stage of their life cycle since industry profits are declining

true

merchant wholesalers account for over 50% of all wholesalers

true

merchant wholesalers who take the title to the products they sell are the most common type of wholesaling establishment

true

most traditional channel systems don't have a channel captain

true

offering superior customer value is especially important when competition is intense

true

organizations that adopt the marketing concept should be concerned about marketing ethics as well as broader issues of social responsibility

true

positioning shows how proceed and/or present are located in a market as seen by customers

true

private warehouses (compared to public warehouses) are most appropriate when a firm has a regular need to store a large quantity of goods

true

product life cycles describe industry sales and profits within a particular product-market and not the sales and profits of individual products or brands

true

regrouping actives involve adjusting the quantities and/or assortments of products handled at each level in a channel of distribution

true

retailers who carry any product line that will sell profitably are practicing scrambled merchandising

true

sales growth is faster when a new product is easy to use and its advantages are easy to communicate

true

sales growth is faster when the product can be used on a trial basis

true

scrambled merchandising means mixing product lines for higher profits

true

selling direct-to-customers is more common with business products than consumer products

true

some firms are forced to use direct distribution when they can't find middlemen willing to carry innovative new products

true

specialty shops are limited-line stores which aim at a carefully defined target market with a unique product assortment, good service, and knowledgable salespeople

true

strategic planning is the managerial process of developing and maintaining a match between an organizations resources and its market opportunities

true

the "wheel of retailing" theory fails to explain some major retailing developments such as vending machine and convenience food stores

true

corporate chains are taking a smaller percentage of retail sales now that consumers are demanding lower prices

false

department stores are stores which usually try to service customers seeking a variety of convenience products

false

department stores keep growing in numbers, sales, and market share

false

discrepancies of assortment occur because individual producers tend to specialize in producing a large assortment of products while individual consumers prefer to buy a small assortment of products

false

A consumers choice of a retail store appears to be based almost entirely on economic needs

false

a retailer that buys from a rack jobber needs to have an employee who is a specialist in the products the rack jobber handles

false

according to our class discussion its best for the channel captain to be a producer rather than a wholesaler or retailer

false

adopting the marketing concept rarely requires any change in a firms attitudes organization structure or management methods and procedures

false

agent middlemen do not own the products they sell, but they usually perform even more functions than a service wholesaler

false

aggressive, market-oriented middlemen are almost always available and eager to handle the distribution of innovative new products

false

bulk-breaking means separating products into grades and qualities desired by different target markets

false

cash and carry wholesalers do not deliver products or grant credit but their costs are high relative to other types of wholesalers because of all the other services they provide to small retailers

false

compared to intensive distribution selective distribution gives a producer a greater opportunity for profit but it usually makes it more difficult for middlemen to make a profit

false

discrepancies of quantity and assortment occur because individual producers find it economical to produce and sell small quantities of a large assortment of products while individual consumers prefer to buy larger quantities of a small assortment of products

false

during the marketing company era the total company effort is guided by the idea that customers exist to buy the firms output

false

during the various stages of the product life cycle the attitudes and needs of target customers do not change

false

intensive distribution is selling though only those middlemen who will give the product special attention

false

its usually possible for a consumers get much more information about a product in a retail store than on the web

false

manufacturers agents are mainly used as an inexpensive way to continue getting sales for a product once a company own sales force has successfully introduced it to the market

false

manufacturers agents sell related products for several competing manufacturer

false

manufacturers agents try to work for one producer at a time so they can devote all their energies to that producers products

false

mass marketing means focusing on some specific customers as opposed to assuming that everyone is the same and will want whatever the firm offers

false

most marketing functions can be shared in a channel but they storing function is almost always handled by the producer

false

retailers and their strategies can easily be classified based on the type of merchandise they sell

false

retailing includes all of the activities involved in reselling goods to final consumers but it does not include the sale of services to final consumers since services must be produced

false

reverse channels are used when dual distribution fails

false

reverse channels may provide a way to retrieve unwanted products from middlemen, business customers, or final consumers

false

sales growth is usually faster when the product is incompatible with the past values and experience of the target market

false

scrambled merchandising refers to the practice of conventional retailers handling many of these products have to be sold at a low profit

false

selective distribution is growing in popularity because it provides 100% coverage of the market

false

storing provides place, possession, and form utility

false

supercenters are very large stores that specialize in selling a big variety of infrequently purchased products that would otherwise be hard for consumers to find

false

the chain of supply concept refers to the idea that distribution can usually be reduced if the firm that is the weakest link in the channel of distribution is eliminated

false

the development of marketing middlemen in central markets increases the total number of transactions necessary to carry out exchange between producers and consumers

false

the four Ps of marketing mix are people, products, price, and promotion

false

the major advantage of vending machine retailing is that the costs are low relative to the volume they sell

false

the marketing concept means that a firm emphasizes attracting new customers above all other objectives

false

the probable length of the product lifecycle has little effect on strategy planning

false

the sale of candy from a vending machine at a bus station is not considered retailing since no store is involved

false

the smaller the comparative advantage of a new product over those already on the market the faster its sales will grow

false

the term chain of supply can be misleading because the chain typically involves only two firms: a vendor (selling firm) and a customer (buying firm)

false

voluntary chains are retailer sponsored groups and cooperative chains are wholesaler sponsored groups which work together to better compete with corporate chains

false

when a warehouse is rearranged to speed up order processing "regrouping activities" are being performed

false

differentiation often requires a firm to fine-tune its marketing mix to meet the specific needs of its target market(s)

treu

In an indirect channel of distribution both vertical and horizontal conflict may arise

true

Manufacturers are sometimes forced to use dual distribution because their present channels are doing a poor job or are not reaching some potential customers

true

Place is concerned with the selection and use of marketing specialists middlemen and facilitators to provide target customers with time, place, and possession utilities

true

Social class appeal is one of the emotional needs that seems to affect a consumers choice of a retail store

true

a brokers product is market information

true

a chain of supply includes all the activities involved in procuring materials transforming them into products and distributing them to customers

true

a channel Capitan is a manager who helps direct the actives of a whole channel

true

a channel of distribution is part of a broader network of relationships is called a chain of supply

true

a channel of distribution is part of a chain of supply

true

a consumer who went to shop a super center would probably expect not only to be able to buy food and health care products, but also to leave dry-cleaning or have shoes repaired

true

a good market segment should be composed of people who are homogeneous as possible with respect to their likely responses to marketing mix variables

true

a hardware wholesaler that buys nails from a manufacturer and then sells them to retail hardware stores is a merchant wholesaler

true

a manufacturer may be forced to use dual distribution because a big retail chain wants to deal directly with it instead of wholesalers

true

a manufacturer that uses several competing channels to reach the same target market is using "dual distribution"

true

a manufacturers agent represents a manufacturer in some specified geographic area while selling agents usually handle the entire output of one or more producers

true

a marketing strategy is composed of two interrelated parts a target market and a marketing mix

true

a producer who wants to reach certain customers may have no choice about which wholesaler to use

true

a selling agent takes over the whole marketing job of producers not just the selling function

true

a substantial market segment is one which is big enough to be profitable

true

a wholesaler might help a producer by reducing the producers need to carry large inventory stocks

true

a wholesaler might help a producer by reducing the producers needs for market research

true

accumulating involves collecting products from many small producers often as a way to get lower transportation rates

true

all types of retailers are now establishing a presence on the internet

true

although the customer should be the target of all marketing efforts customers are not part of a marketing mix

true

although wholesalers no longer dominate channels in the US they do provide a necessary function and have survived because of new management and new techniques

true

any contractual channel system by definition is also an administered channel system

true

assorting additives involve putting together a variety of products to give a target market what it wants

true

because middlemen are closer to the final user they are in an ideal position to assume the channel captain role

true

brokers usually have a temporary relationship with the buyer and seller

true

convenience food stores now compete with grocery stores, gas stations, and fast-food outlets

true

cooperative chains are retailer sponsored groups formed by independent retailers to run their own buying organizations

true

customer satisfaction is the extent to which a firm fulfills a consumers needs, desires, and expectations

true

customer value is the difference that a customer sees between the benefits of a firms offering and the costs of obtaining those benefits

true

differentiation emphasizes uniqueness rather than similarity

true

the "wheel of retailing" theory says that new retailers enter the market as high-status, high margin, high-price operators and then evolve into discount stores as competition becomes more intense

true

the growth of cooperative chains of retail stores is due to the desire of small retailers to achieve some benefits of large scale corporate chains

true

the internet is making it possible for firms to reach customers that were impossible to reach before

true

the main function of a distribution center is to speed the flow of goods and avoid unnecessary storage

true

the market introduction stage of product life cycle is usually marked by losses as money is being invested in the hope of future profits

true

the most important reason to use indirect channels is if middlemen can help serve customer better and at a lower cost

true

the place decisions are concerned with getting the right product to the target market at the right time

true

the product life cycle concept applies to retailers as well as products

true

the product life cycle is the four stages a new product idea goes through from beginning to end

true

the product that brokers sell is information about what buyers need and what supplies are available

true

the stage of product life cycle in which competitors are most likely to introduce product improvements is the market growth stage

true

wholesaling has adopted new strategies and big changes are underway even though they may be invisible to consumers

true


Related study sets

Ap History "Industrial development"

View Set

Learning Curve 4b. Infancy and Childhood

View Set

5.2 & 10.3, Natural selection & Speciation

View Set