MKG 300 CH 11 – Flashcards

83. (p. 313) When planning physical distribution, the marketing manager should: A. set the customer service level so that every customer can get the product exactly when he wants it. B. minimize the cost of distribution for a given customer service level. C. minimize the cost of transportation. D. maximize the speed of delivery. E. make use of a distribution center.

86. (p. 313) The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level. A. PERT B. product-market C. distribution center D. physical distribution E. marketing

92. (p. 313) Which of the following statements best reflects a marketing-oriented approach to physical distribution? A. "We should create a position of inventory manager and give that person authority to coordinate all physical distribution activities to minimize the firm's total inventory costs." B. "We should aim to keep our customers fully satisfied 100 percent of the time as this will increase our sales and give us a competitive advantage." C. "We should replace our warehouses with distribution centers to speed the flow of products and eliminate all storage." D. "We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires." E. All are equally "marketing-oriented."

93. (p. 314) A merchant wholesaler is considering four physical distribution systems and estimates the total cost and customer service level for each as follows: The best alternative is: A. truck. B. airfreight. C. rail and warehouse. D. inland waterways. E. Cannot be determined without knowing how the target customers feel about the customer service level

98. (p. 316) Physical distribution decisions interact with which other marketing mix decisions? A. Price decisions. B. Promotion decisions. C. Product decisions. D. All of the above. E. None of the above.

108. (p. 316) A supply chain: A. is part of a broader network of relationships called a channel of distribution. B. is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain. C. requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts. D. focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs. E. concerns only direct relationships between producers, but a channel of distribution may involve intermediaries.

112. (p. 318) Electronic data interchange: A. puts information in a standardized format. B. makes inventory information more accessible. C. is common in both domestic and international markets. D. all of the above. E. both A and B, but not C

118. (p. 319) Which of the following statements about the transporting function is TRUE? A. Among transportation modes, an advantage of air transport is its ability to handle a variety of goods. B. Because transportation costs are less than 1 percent of costs for most products, marketing managers do not need to consider them when making strategy decisions. C. Pipelines are generally one of the fastest modes of transportation. D. In most countries, government plays little role in transportation. E. Transporting costs can be a large part of the total cost for heavy products that are low in value.

121. (p. 319) 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. E. Manufactured food.

More freight is carried more miles _____ than any other mode of transportation. A. by railroads B. by air C. by pipeline D. by trucks E. over water

131. (p. 320) All of the following are advantages of using trucks EXCEPT: A. flexibility. B. fast delivery speed. C. reliability in meeting delivery schedules. D. handling a variety of goods. E. serving a limited number of locations.

133. (p. 320) At least ________ percent of all freight shipped in the United States moves by trucks--at least part of the way--from producer to user. A. 20 B. 75 C. 15 D. 5 E. 10

137. (p. 321) Which of the following transportation modes is "best" at handling a variety of goods? A. Truck B. Rail C. Water D. Air E. Pipeline

146. (p. 321) _____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules. A. Trucks B. Railroads C. Waterways D. Airfreight E. Pipelines

153. (p. 322) Regarding airfreight, which of the following statements is NOT true? A. Airfreight may reduce the total cost of distribution. B. Inventory costs usually increase, since only small quantities can be shipped at a time. C. Very bulky items cannot be shipped economically. D. Airfreight is opening up new markets for many perishable items. E. There are usually fewer problems from theft and damage with airfreight

170. (p. 324) 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. E. the quality of goods being stored.

171. (p. 324) Storing: A. is related to Place--but has no effect on Price. B. is necessary because production does not always match consumption. C. must be performed by all members of a channel system. D. decreases the value of products. E. All of the above are true statements.

173. (p. 324) Which of the following statements is NOT TRUE? A. Storing is a marketing function. B. Storing allows producers and intermediaries to keep stocks at convenient locations. C. Storing allows the producer to achieve economies of scale in production. D. Storing is necessary when production of goods doesn't match consumption. E. Storing can increase the value of goods, but does not involve costs.

192. (p. 326) Distribution centers: A. Are designed to facilitate the flow of products through the channel. B. Are the same as public warehouses. C. Are not places where regrouping activities—such as bulk- breaking—are performed. D. Increase storing costs. E. All of the above.