ADM 1100 Lecture 8: March 17th ADM1100 - Marketing part 2

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26 Jan 2017

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Packaging: affects the durability, image, and convenience of an item and is responsible for one of the biggest costs in many consumer products. Distribution cannel: the path that products and their legal ownership follow from producer to consumers or business users. Physical distribution: the actual movement of products from producer to consumer or business users. Wholesalers: a distribution channel member that sells primarily to retailers, other wholesalers, or business users. Retailers: distribution channel members that sells goods and services to individuals for their use, not for resale. Non-store: direct response retailing (catalogues, telemarketing); internet retailing, (websites, amazon); automatic merchandising (pop machine, candy machine); direct selling (manufacturer to consumer, door-to-door) Types of retail stores: specialty stores, convenience stores, discount stores, warehouse stores, factory outlet, supermarket, supercenter, department store. Early 200s: internet retailers, big-box stores, lifestyle shopping centers. Logistics: level of distribution intensity, what channel will they use.

Related Questions

A channel of distribution:

A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
B) is only needed when products must be stored.
C) must include one or more intermediaries.
D) is only needed when products are sold indirectly.

Which of the following statements about Place decisions is True?

A) Product classes are not related to Place objectives.
B) The product life cycle is not related to Place objectives.
C) Place decisions are short-term decisions that are easy to change.
D) Different market segments may require separate Place arrangements.

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

A) marketing
B) selling
C) distribution
D) servicing

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

A) Discrepancy of assortment.
B) Discrepancy of quantity.
C) Regrouping activity.
D) Discrepancy adjustment

Which of the following best illustrates adjusting "discrepancies of assortment?"

A) General Motors makes Hummer for one product-market and Chevrolet for another product-market.
B) A hardware store sells all the hardware items wanted by most people.
C) Over 310 million U.S. consumers are served by around 330,000 manufacturers.
D) RCA sold more than 2,000,000 TVs last year

Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:

A) Assorting
B) Wholesaling
C) Bulk-breaking
D) Accumulating

Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping activity is Costco shifting to the consumer?

A) Accumulating.
B) Adjusting discrepancies.
C) Assorting.
D) Bulk-breaking.

_____ means separating products into grades and qualities desired by different target markets.A) B) C) D)

A) Bulk-breaking
B) Sorting
C) Accumulating
D) Assorting

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

A) contractual
B) vertical
C) corporate
D) horizontal

10.

A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.

A) horizontal
B) traditional
C) vertical
D) contractual

11.

Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:

A) dual distribution.
B) reverse distribution.
C) a contractual channel system.
D) vertical integration.

12.

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

A) Exclusive distribution
B) Direct distribution
C) Intensive distribution
D) Multichannel distribution

13.

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

A) Licensing
B) Management contracting
C) Joint venturing
D) Exporting

14.

Logistics, or physical distribution, is the ________________ part of the marketing mix.

A) Place
B) Production
C) Promotion
D) Product

15.

Physical distribution customer service level means all of the following EXCEPT:

A) Honda wants enough bumpers to build cars that day.
B) A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter.
C) Sears' shirts are priced at a fair value.
D) McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale.

16.

The right physical distribution system should be based primarily on

A) the desired customer service level.
B) how customers store the product.
C) the physical characteristics of the product.
D) what is the lowest cost method of transportation for the product.

17.

The "total cost approach" to physical distribution management:

A) seeks to eliminate the storing function.
B) seeks to minimize the cost of transportation.
C) might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
D) ignores inventory carrying costs.

18.

Just-in-time (JIT) delivery:

A) Increases physical distribution costs for business customers.
B) Requires that a supplier be able to respond to the customer's production schedule.
C) Usually does not require e-commerce order systems and computer networks.
D) Means that deliveries are larger and less frequent.

19.

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

A) supply chain
B) physical distribution group
C) logistics partnership
D) just-in time group

20.

Which of the following products would have the lowest transporting costs as a percentage of the selling price?

A) Electronic equipment.
B) Chemicals and plastics.
C) Pharmaceuticals.
D) Sand and gravel.

21.

Which of the following statements about transporting by rail is True?

A) Rail transportation is the slowest mode of transportation.
B) Rail transportation is the least expensive mode of transportation.
C) Rail transportation is good for long-distance transportation of heavy, bulky items.
D) Railroads are most efficient at handling less-than-carload (LCL) shipments

22.

Regarding transporting by truck:

A) Trucks are best for moving large quantities of goods long distances.
B) Trucks are a very low cost mode of transportation.
C) Trucks are not reliable in meeting delivery schedules.
D) Trucks tend to provide fast delivery.

23.

Products that require a high frequency of scheduled shipments would be least suited to travel by

A) truck.
B) rail.
C) air.
D) water.

24.

In spite of high cost, high value, low-weight goods like high-fashion clothing and parts for the electronic industry are often shipped long distances by ____

A) rail.
B) water.
C) air.
D) pipeline.

25.

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

A) Containerization.
B) Piggybacking.
C) Freight forwarding.
D) Cylinderization.

26.

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

A) truck service.
B) fast freight.
C) trailer service.
D) piggyback service.

27.

Inventory refers to

A) the amount of goods being stored.
B) minimizing storage costs.
C) the amount of goods being sold.
D) the marketing function of holding goods.

28.

When the manager of a local electronics store decides to offer its customers a gift-wrapping service for the holidays, this is a decision about:

A) Product
B) Place
C) Promotion
D) Price

29.

When the manager of a RadioShack electronics store decides to accept American Express credit cards from its customers, this is a decision about:

A) Product
B) Place
C) Promotion
D) Price

30.

Limited-line storesA) B) C) D)

A) specialize in certain lines of related products rather than a wide assortment.
B) carry anything they can sell in reasonable volume.
C) are a type of unconventional general store.
D) are larger stores that are organized into many separate departments and offer many product lines.

31.

Specialty shops generally:

A) want to be known for the distinctiveness of their product assortment and the special services they offer.
B) sell homogeneous shopping products.
C) are very good at speeding turnover.
D) carry complete lines--like department stores.

32.

The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

A) Wheel of retailing theory
B) Production concept
C) Mass-merchandising concept
D) Sales concept

33.

A retail store that averages about $17 million in sales annually and specializes in groceries--with self-service and large assortments is a:

A) mass-merchandiser.
B) specialty shop.
C) convenience food store.
D) supermarket.

34.

________ offer

aquamarineminnow769

FlashX company sells hi-end video games to consumers via the internet, each at a price of $75. It buys each game at a cost of $40, and it incurs another $5 per unit in distribution expenses. If FlashX incurs fixed overhead expenses per year of $2.1 million how many units does it need to sell in order to break even?

70,000

65,000

52,500

28,000

QUESTION 6

Why do retailers use the âmarkup on priceâ method of pricing, rather than the âmarkup on costâ method?

		Because it costs less to use the âmarkup on priceâ method.
		So that the âmarkupâ and âmarkdownâ percentages can easily be compared.
		Because it is more profitable to use the âmarkup on priceâ method.
		All of the above.

2 points

QUESTION 7

What can a service marketer do to manage the issue of âperishability?â

Charge higher prices during periods of peak demand, and reduce prices during periods of low demand.

Make sure that ambient conditions (physical surroundings) are pleasant.

Use better packaging to make sure the product does not spoil.

All of the above.

To say that service offerings are âinseparableâ means that:

		A service offering cannot be seen or touched.
		A service offering is âproducedâ or âdeliveredâ in the presence of the customer.
		The quality of a service offering can vary from customer to customer.
		All of the above are true.

2 points

QUESTION 10

Which of the following factors should be considered when setting the price of a new product?

		The price of substitute products.
		The anticipated length of the product life cycle.
		The degree of differentiation between the new product and existing products on the market.
		All of the above.

2 points

QUESTION 11

Which of the following statements regarding packaging is true?

		A package should provide protection to the consumer and to the product.
		A package should attract consumers' attention
		A good package should explain the features of the product, and how to use it.
		All of the above are true.

2 points

QUESTION 12

The "demand based" method for determining the selling price takes into consideration the fact that:

		Lower prices lead to higher sales volumes.
		Higher sales volumes lead to lower unit costs of production.
		Different levels of price (and cost) lead to different levels of profit.
		All of the above.

2 points

QUESTION 13

The concept of the âexperience curveâ is a recognition that:

		For new innovations, production costs typically increase as more and more units are produced.
		For innovations, production costs typically are not affected by production volume.
		For new innovations, production costs typically decline as more and more units are produced.
		Marketing managers who have more experience are typically more effective at their jobs.

2 points

QUESTION 14

Factors that affect the rate of adoption of new, innovative products include:

		The level of compatibility with existing technology.
		The extent to which people can observe others using the product.
		The level of functional, social, and/or monetary risk associated with the product.
		All of the above.

2 points

QUESTION 15

Which of the following statements regarding "convenience products" is true?

		Consumers typically will not accept substitute brands.
		Consumers typically are willing to put forth a high level of shopping effort.
		These products should be distributed through a wide variety of retail stores.
		All of the above are true.

2 points

QUESTION 16

Which of the following statements regarding a âfamily brandingâ strategy is true?

		A family branding strategy allows a firm to capitalize on its previous successes.
		A failure of one product within the family brand can harm sales of the other brands in the family.
		Family branding is advantageous in that it allows consumers to identify the manufacturer much easier, thus helping consumer to better judge the quality of the product.
		All of the above are true.

2 points

QUESTION 17

Which of the following factors argue for a penetration pricing strategy?

		The market potential is large, and is expected to increase over the years.
		It is highly likely that competitors will soon enter the market.
		Higher levels of sales volume are likely to bring lower production costs per unit.
		All of the above.

2 points

QUESTION 18

Which of the following statements regarding packaging is true?

		The quantity of product offered in a package can affect whether some consumers try the product.
		Different markets segments oftentimes desire different size/quantity packages.
		Different types of retail stores oftentimes prefer to carry different size/quantity packages.
		All of the above are true.

2 points

QUESTION 19

To say that a service offering is âintangibleâ means that:

		The service offering is âproducedâ or âdeliveredâ in the presence of the customer.
		The quality of the service offering can vary from customer to customer..
		The service offering cannot be seen or touched.
		All of the above are true

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ADM 1100 Lecture 8: March 17th ADM1100 - Marketing part 2

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