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Exam 15: Distributing Products

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Question 111

True/False

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Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

A) True
B) False

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Question 112

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A major advantage of direct marketing is that it is a very convenient way for consumers to shop.

A) True
B) False

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Question 113

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

The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.

Wholesaler-sponsored chains consist of stores that are all owned by a single corporation.

Water transportation has declined to the point where it now accounts for a very small part of transporting goods.

In order to succeed in today's tough economic times all retailers must compete with low prices.

Salespeople can be important providers of information utility.

The basic transportation service criteria are speed, cost, dependability, flexibility, frequency, and reach.

A(n) __________ sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have certain product flaws.

The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

In the Reaching Beyond Our Borders box, we learned that natural disasters and other potential problems can wreak economic havoc on a supply chain.

Saul-Mart is the name of a new chain of discount stores. A major part of Saul-Mart's competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.

The owners of the TriCities Mall recently renovated the mall's interior. Much of the interior of the mall was made to look like scenes from famous movies. The mall also hired employees to dress like characters from these movies. There are many types of shops in the mall, including six different jewelers; however, only one jeweler carries the very expensive Romex brand of watch that appeals to customers who are looking for status in their jewelry. Romex is practicing exclusive distribution by placing its brand in only one store in a given area.

The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

Direct marketing involves having a salesperson visit the customer's home or place of business.

One thing that franchise systems, wholesaler-sponsored chains and retail cooperatives have in common is that they are all:

Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice.

Which of the following would be the best example of a broker?

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.