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Clay Gates is a distribution specialist who has been looking at ways to improve the flow of parts and materials from his company's warehouses to the production line,and the movement of work in process throughout the company's factories.These efforts suggest that Clay's primary interest is in improving his company's inbound logistics.

A) True
B) False

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Seasonal goods are kept in storage warehouses.

A) True
B) False

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The activities performed by most marketing intermediaries are not essential to the marketing process.

A) True
B) False

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In a(n) __________,independently owned and managed stores sign an agreement to use the same name,participate in chain promotions,and cooperate as a unified system.


A) administered distribution system
B) corporate distribution system
C) wholesaler-sponsored chain
D) cash-and-carry chain

E) A) and C)
F) B) and D)

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The highest-cost transportation method is:


A) railroad.
B) truck.
C) ship.
D) air.

E) C) and D)
F) A) and B)

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Department stores offer a wide variety of products that are sold in separate departments.

A) True
B) False

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In multilevel marketing "upliners" recruit "downliners" and receive a commission on the sales their downliners make.

A) True
B) False

Correct Answer

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Retailers such as jewelry stores,shoe stores,and bicycle shops are:


A) department stores.
B) discount stores.
C) warehouse clubs.
D) specialty stores.

E) C) and D)
F) B) and C)

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The two basic types of merchant wholesalers are:


A) full-service wholesalers and limited-function wholesalers.
B) functional wholesalers and distributive wholesalers.
C) independent wholesalers and subsidiary wholesalers.
D) capital wholesalers and full-value wholesalers.

E) All of the above
F) B) and C)

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Explain why you agree or disagree with the following statement:

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"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit.Therefore,the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution." It is true that marketing intermediaries seek to earn a profit on the activities they perform.However,because they specialize in the functions they perform,they can often do them much more efficiently than producers or consumers.In other words,intermediaries not only add to costs,they also create value when they perform distribution functions.Usually,the value they create more than offsets the cost they add;that is why intermediaries have survived and prospered. However,changes in technology (especially the growth of the Internet)have made it possible to replace some intermediaries.In order to survive in the future,intermediaries will have to be flexible and adapt to the changing needs of distribution.

Marketers provide a total of four types of utility: primary,secondary,marginal,and total.

A) True
B) False

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Zintelle,Inc.is a large manufacturing firm.It has recently reached an agreement with an intermodal marketing company to significantly reduce the cost of shipping its finished goods to some major business customers.This agreement will help Zintelle reduce the costs associated with outbound logistics.

A) True
B) False

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True

Tony works at an auto assembly plant for a U.S.auto manufacturer.He manages a group of employees who measure the quality of parts that arrive on rail cars from Mexico and other countries.As a receiver of auto parts from other suppliers,Tony works in _________________.


A) third party logistics
B) supply chain management
C) a corporate distribution system
D) direct mail operations

E) All of the above
F) C) and D)

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

A) True
B) False

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___________ would probably be distributed using an intensive strategy.


A) iPods
B) High-def television sets
C) Men's suits
D) Popular magazines

E) B) and C)
F) A) and D)

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One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing _________ utility.


A) psychographic
B) place
C) service
D) form

E) A) and B)
F) B) and C)

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

A) True
B) False

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An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.

A) True
B) False

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The main difference between agents and brokers is that agents perform a wide array of marketing functions while brokers only negotiate exchanges between buyers and sellers.

A) True
B) False

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In multilevel marketing,salespeople have an incentive to:


A) recruit new salespeople,because they receive a commission on the sales made by the people they recruit.
B) perform as many of the marketing functions as possible,because each function they perform adds to their commission.
C) sell the product using both direct and indirect marketing methods in order to reach different types of customers.
D) limit the number of salespeople in their franchise area so that they can maximize their own sales.

E) A) and B)
F) A) and C)

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A

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