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Exam 15: Distributing Products

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Question 31

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Drop shippers are limited function wholesalers that typically put together many small shipments to form a single larger shipment.

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Question 32

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Denise Shipman works in the marketing department of a major manufacturing firm. She spends a great deal of time trying to coordinate the movement of materials, parts, finished goods, and information through all of the organizations involved in the distribution process. These activities suggest that Denise's job responsibilities focus on supply chain management.

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Question 33

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Marketing intermediaries concentrate on providing mainly form, time and place utility, while producers focus on the provision of possession, information, and service utility.

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

Merchant wholesalers do not take title to the goods they handle.

Items such as snow skis, lawnmowers, and other highly seasonal items are often held in warehouses during the months they are not in demand.

Retailers agree to cooperate with producers in administered distribution systems because the producers provide extensive marketing services to the retailer for free.

Mall owners tend to like kiosks because they create a marketplace atmosphere.

Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a(n) :

Henry Hart supplies shelves of inexpensive plastic toys to grocery stores, supermarkets, and drug stores. He keeps title to the goods until they are sold and then splits the profits with the retailer. Henry works as a drop shipper.

Franchise systems are one type of distribution system.

Limited-function wholesalers that mainly serve small businesses by selling them a limited assortment of goods are known as:

shipping is the term used when truck trailers are transported on rail flatcars.

Wholesalers may provide market information and business consulting services.

A full-service wholesaler will provide suppliers with market information they can't afford or can't obtain themselves.

Currently, Halperin Electrical sells directly to thousands of industrial customers. Halperin could reduce the number of exchange relationships by including wholesalers in its channel of distribution.

A offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.

Retailers who have stores at convenient locations are trying to add value by:

Mini-Case "We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor. "First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions." -The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with:

Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as: