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Exam 15: Distributing Products

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Question 111

True/False

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Supply chain management manages the movement of relevant information as well as the movement of parts and finished goods through all organizations involved in the supply chain.

A) True
B) False

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Question 112

Multiple Choice

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Compared to rail transportation, one of the advantages of shipping by truck is that trucks

A) are more energy efficient.
B) can carry a greater volume.
C) can reach more destinations.
D) are less expensive.

E) C) and D)
F) None of the above

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Question 113

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A freight forwarder breaks one large shipment into multiple small shipments so that it can be transported by trucks or aircraft with limited cargo capacities.

A firm that wants to distribute its products as widely in a market as possible would use a(n) ________ distribution strategy.

Cozy Corner Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Cozy Corner, its suppliers, and the marketing intermediaries are all part of a supply chain.

________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.

Inbound logistics is concerned with the flow of finished products from the manufacturer to the final consumer.

In ________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

Zara is the publisher of "Luxe Ladies Magazine," which is a publication targeted to Millennial and Gen Z women. Because it is a small, new publication, some of the larger bookstores, convenience stores, and newsstands are not agreeing to distribute the magazine. Zara is very concerned by this trend, because she believes that her publication, like most magazines, needs ________ distribution in order to succeed.

Which of the following statements provides the most accurate distinction between an agent and a broker?

Telemarketing, catalog sales, and online shopping are all examples of direct marketing.

Franchise systems, wholesaler-sponsored chains, and retail cooperatives are all forms of contractual distribution systems.

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

Cash-and-carry wholesalers are limited-function wholesalers that serve mostly smaller retailers with a limited assortment of products.

The air freight industry is starting to focus on global distribution.

Firms that rely on online retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.

Having just finalized its new tablet design, Epic Electronics's marketing team plans to begin a rollout with ________ to only one traditional retailer for the first two months. This strategy will give consumers the perception of the product's stand-out personality and increase demand. Epic will continue with ________ for the next four months, where it plans to distribute to three other retailers, as well. For the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. The marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. As the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with ________, as described above.

Delivery, installation, and follow-up services are the most common ways that marketing intermediaries provide information utility.

Some marketing intermediaries make both wholesale and retail sales.

Cash-and-carry wholesalers and drop shippers are both classified as limited-function wholesalers.