Intro to Business chapter 13

Distribution channel (or market channel)
A sequence of marketing organizations that directs a product from the producer to the ultimate user
Middleman (or marketing intermediary)
A marketing organization that links a producer and user within a marketing channel
Merchant middleman
A middleman that actually takes title to products by buying them
Functional middleman
A middleman that helps in the transfer of ownership of products but does not take title to the products
A middleman that buys from producers or other middleman and sells to consumers
A middleman that sells products to other firm
Intensive distribution
The use of all available outlets for a product
Selective distribution
The use of only a portion of the available outlets for a product in each geographic area
Exclusive distribution
The use of only a single retail outlet for a product in a large geographic area
Supply-chain management
Long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers
Which of the following is not true regarding this statement..”Wholesalers help retailers by……”
A. Buying in large quantities and selling to retailers in small quantities and delivering goods to retailers
B. Stocking in one place the variety of goods that retailers otherwise would have to buy from many producers
C. Providing assistance and other vital areas, including promotion, market information, and financial aid
D. Providing a salesforce, reducing inventory cost, assuming credit risk, and furnishing market information
Merchant wholesalers
A middleman the purchases goods in large quantities and sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users
Full-service wholesaler
A middleman that performs the entire range of wholesaler functions
General-merchandise wholesaler
A middleman that deals in a wide variety of products
Limited-line wholesaler
A middleman that stocks only a few product lines but carries numerous product items within each line
Specialty-line wholesaler
A middleman that carries a select group of products within a single line
A middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis
A middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis
Independent retailer
A firm that operates only one retail outlet
Chain retailer
A company that operates more than one retail outlet
Department store
A retail store that (1) employees 25 or more persons and (2) sells at least home furnishings, appliances, family apparel, and household linens and dry goods, each in a different part of the store
Discount store
A self-service General-merchandise outlet that sells products at lower-than-usual prices
Warehouse showroom
A retail facility in a large, low-cost building with a large on-premises inventory and minimal service
Convenience store
A small food store that sells a limited variety of products but remains open well beyond normal business hours
A large self-service store that sells primarily food and household products
A large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines
Warehouse club
A large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing
Traditional specialty store
A store that carries a narrow product mix with deep product lines
Off-price retailer
A store that buys manufactures seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
Category killer
A very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability
Nonstore retailing
A type of retailing where by consumers purchase products without visiting a store
Direct selling
The marketing of products to customers through face-to-face sales presentations at home or in the workplace
Direct marketing
The use of the telephone, Internet, and non-personal media to introduce products to customers, who then can purchase them via mail, telephone, or the Internet
Catalog marketing
A type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the Internet
Direct-response marketing
A type of marketing in which a retailer advertises a product and makes it available through mail, telephone, or online orders
The performance of marketing-related activities by telephone
Television homeshopping
Form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card
Online retailer
Retailing that makes products available to buyers through computer connections
Automatic vending
The use of machines to dispense products
Lifestyle shopping center
An open-air-environment shopping center with upscale chain specialty stores
Neighborhood shopping center
A planned shopping center consisting of several small convenience and specialty stores
Community shopping center
A planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores
Regional shopping center
A planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels
Which of the following is not one of the major steps in developing an advertising campaign
A. Close the sale
B. Develop the media plan
C. Identify and analyze the target market
D. Define the objective
Incentive trips such as golf outings or product “push” “programs aimed at vendors would be classified as which component of the promotion mix?
A. Sales promotion
B. Personal selling
C. Advertising
D. Public relations
Which type of distribution coverage would a convenience good, like candy most likely use?
A. Selective distribution
B. Intensive distribution
C. Physical distribution
D. Warehousing
E. Exclusive distribution
The American Express television promotion “don’t leave home without it” is an example of
A. Publicity
B. Creative selling
C. refunding
D. Advertising
E. Public relations
L’eggs hosiery, packaged in large plastic eggs contained directly beneath the visual advertising, would be considered a
A. Cooperative advertising
B. Primary-demand advertising
C. Comparative advertising
D. Promotional campaign
E. Point-of-purchase display
The content and form of an advertising message are influenced least by
A. A product features
B. The characteristics of the target market
C. The choice of media
D. The objectives of the campaign
E. The competitors promotion
Selective-demand advertising
A. Is by far the most common type of advertising
B. Increases the demand for all brands of a product
C. Personally informs customers about a product
D. Enhances a firms image or reputation
E. Delivers a news story about a product
Creative selling involves perceiving buyers needs, supplying information about a firms products, and persuading customers to buy the product. Which type of sales person does this job?
A. Order-taker
B. Order-Getter
C. Trade salesperson
D. Technical salesperson
E. Missionary salesperson
Physical distribution
All those activities concerned with the efficient movement of products from the producer to the ultimate user
Inventory management
The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
Order processing
Activities involved in receiving and filling customers purchase orders
The set of activities involved in receiving an store and goods and preparing them for reshipment
Materials handling
The actual physical handling of goods, in warehouses as well as during transportation
The shipment of products to customers
A firm that offers transportation services
Warehousing-receiving goods
Warehouse except deliver goods and assumes responsibility for them
Warehousing -identifying goods
Records are made of the quantity of each item received. Items maybe Mark coated or tag for identification
Warehousing-sorting goods
Deliver goods may have to be sorted before being stored.
Warehousing-dispatching goods to storage
Items must be moved to storage areas, where they can be found later
Warehousing-holding good
The goods are protected in storage until needed
Warehousing-recalling, picking, and assembling good
Items that are to leave the warehouse must be selected from storage and assembled efficiently
Warehousing-dispatching shipments
Each shipment is packaged and directed to the proper transport vehicle. Shipping in accounting documents are prepared
Private warehouse
Owned and operated by a particular firm, can be designed to serve the firms specific needs
Public warehouses
Open to all individuals and firms. most are located on the outskirts of cities where rail and truck transportation is easily available
Contract carrier
Available for hire by one or several shippers. Contract carriers do not serve the general public and the number of firms they can handle at a time is limited by law
Integrated marketing communications
Coordination of promotion efforts to ensure maximal informational and persuasive impact on customers
Communication about an organization and its products that is intended to inform, persuade, or reminded target-market members
Promotion mix
The particular combination of promotion methods firm uses to reach a target market. (One of four promotion methods)
A paid non-personal message communicated to a select audience through a mass medium. (One of four promotion methods)
Personal selling
Personal communication aimed at informing customers and persuading them to buy a firms product. (One of four promotion methods)
Sales promotion
The use of activities or materials as direct inducements to customers or salespersons. (104 promotion methods)
Public relations
Communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external
Primary-demand advertising
Advertising whose purpose is to increase the demand for all brands of product with in a specific industry
Immediate-response advertising
Selective-demand advertising that aims at persuading customers to make purchases within a short time
Reminder advertising
Selective advertising aimed at keeping the public aware of a firm’s name or product
Comparative advertising
Compares the sponsor brand with one or more Identified competing brands
Selective-demand (or brand) advertising
Advertising that is used to sell a particular brand product
Institutional advertising
Advertising designed to enhance a firms image or reputation
Major steps in developing an advertising campaign
#1 Identify and analyze the target Audience
#2 Define the advertising objectives
#3. Create the advertising platform
#4 determine the advertising appropriation
#5 develop the media plan
#6 create the advertising message
#7 execute the campaign
#8 evaluate Advertising effectiveness
Advertising agency
An independent firm that plans, produces, and places advertising for its clients
The direct channel of distribution for consumer goods includes both a wholesaler and a retailer
A. True
B. False
Heavy machinery and major equipment installations are usually distributed directly from producer to business user
A. True
B. False
Wholesalers help manufactures by performing functions similar to those provided to retailers
A. True
B. False
Few retailers are independent retailers
A. True
B. False
A disadvantage of truck transportation is its inflexible delivery schedule
A. True
B. False
The make up of the promotion mix depends on the characteristics of the target market
A. True
B. False
Trade and industry associations, such as the California milk processor board, are the major users of selective-demand advertising
A. True
B. False
The focus of primary-demand advertising is image building
A. True
B. False
Critics argue that advertising is wasteful
A. True
B. False
The middleman who buys from producers or other middleman and sells to consumers is the
A. Wholesaler
B. Retailer
C. Agent middleman
D. Merchant agent
E. Merchant middleman
Breaking down large quantities, having an assortment on hand, and providing promotion, market information, and financial aid are all services that
A. Wholesalers provide to retailers
B. Manufactures provide to wholesalers
C. Retailers provide to wholesalers
D. Wholesalers provide to manufactures
E. Retailers provide to manufacturers
Merchant wholesalers may be generally classified as full-service wholesalers or Limited-service wholesalers, depending on the
A. Width of their product mixes
B. Width of their product line
C. Size of their warehouse or warehouses
D. Dollar value of their sales
E. Range of the wholesaler services provided
In which channel do producer sell directly to consumers to better control the quality and price of their products?
A. Producers to retailers to consumers
B. Producers to agents to consumers
C. Producers to wholesalers to retailers to consumers
D. Producers to agents to wholesalers to retailers to consumers
E. Producers to consumers
Major elements in an organization’s promotion mix are
A. Advertising, personal selling, publicity and public relations
B. Promotion, price, product, and distribution
C. Site, store hours, faculties, customer service, pricing, buying, and promotion
D. Advertising, personal selling, public relations, and sales promotion
A paid, non-personal message communicated to a selected audience through a mass medium is called
A. Personal selling
B. Promotion
C. Advertising
D. Publicity
E. Sales promotion
The most selective medium is
A. Newspaper
B. Direct mail
C. Radio
D. Television
A problem with clearly false and deceptive advertising might properly be reported by a consumer to the
A. Federal trade commission
B. Federal advertising investigation liaison committee
C. National Labor Relations Board
D. Social Security Administration
E. Occupational safety and health administration
The first step in the personal selling process is
A. Prospecting
B. Answering objections
C. Closing the sale
D. Approaching the prospect
Public-relations Activities might include
A. Company magazines
B. Sponsorship of programs on public radio and television
C. Brochures
D. All of these choices
E. Newsletters
Order getter
A salesperson who is responsible for selling a firms products to new customers and increasing sales to present customers
Creative selling
Selling products to new customers and increasing sales to present customers
Order taker
A salesperson who handles repeat sales in ways that maintain positive relationships with customers
Sales support personnel
Employees who aid in selling but are more involved in locating prospects, educating customers building goodwill for the firm, and providing follow-up service
Missionary salesperson
A salesperson-generally employed by a manufacture-who visits retailers to persuade them to buy the manufactures products
Trade salesperson
A salesperson-generally employed by a food producer or processor-who assist customers in promoting products, especially in retail stores
Technical salesperson
A salesperson who assists a company’s current customers in technical matters
Consumer sales promotion method
A sales promotion method designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products
Trade sales promotion method
A sales promotion method designed to encourage wholesalers and retailers to stock and actively promote a manufactures products
A return of part of the purchase price of a product
Reduces the retail price of a particular item by a stated amount at the time of purchase
The free product given to customers to encourage trial and purchase
A gift that a producer offers a customer in return for buying its product
Frequent-user incentive
A program developed to reward customers who engage in repeat (frequent) purchases
Point of purchase display
Promotional material placed within a retail store
Trade show
An industry-wide exhibit at which many sellers display their products
Buying allowance
A temporary price reduction to resellers for purchasing specified quantities of a product
Cooperative advertising
An arrangement whereby a manufacture agrees to pay a certain amount of a retailers media cost for advertising the manufactures products
Communication in news-story form about an organization, it’s products, or bothy
News release
A typed page of about 300 words provided by an organization to the media as a form of publicity
Feature article
A piece (of up to 3000 words) prepared by an organization for inclusion in a particular publication
Captioned photograph
A picture accompanied by a brief explanation
Press conference
A meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs
A specialty-line wholesaler carries a select group of products within a single line
A. True
B. False
Multiple channels of distribution are often used to capture a larger share of the market
A. True
B. False
What is the last step in the personal-selling process?
A. Follow up
B. Prospecting
C. Answering objectives
D. Making the presentation
Which of the following activities does warehousing NOT include
A. Producing goods
B. Recalling, picking and assembling goods
C. Sorting and dispatching goods to storage
D. Dispatching shipments
Which is NOT a characteristic of a contract carrier
A. Is owned and operated by the shipper
B. Available for hire by shippers
C. The number of shippers must be limited
D. Does not serve the general public
A trade sales promotion method attracts consumers to particular retail stores and motivates them to purchase certain new or established products
A. True
B. False
A__________salesperson assists a company’s current customers by explaining how to use a product, how it is made, or how a system is designed
A. Human resource
B. Technical
C. Missionary
D. Trade
You own a fresh flower business that ships flowers to consumers located in many parts of the country. Which mode of transportation best meets your companies needs?
A. Waterways
B. Railroads
C. Piggyback
D. Airplanes
Infotech resources Inc. is a new start-up company with a relatively small promotional budget. The optimal promotional strategy for Infotech would probably be
A. Local advertising
B. Personal selling
C. Sales promotion
D. National advertising
Doug has been to every department store, discount store, and traditional specialty store in town looking for the specific action figure his son wants for his birthday. If Doug has time to try only one more place, he should probably go to which type of retail store
A. Off-price retailer
B. Category killer
C. Convenience store
D. Superstore
Selective demand (or brand) advertising
A. Is used to sell a particular brand of product
B. Is advertising designed to enhance a firms image or reputation
C. Would most often be sponsored by trade or industry associations
D. Consists of the various forms of communication through which advertising reaches it’s audience
Wholesaler services to manufactures include all of the following except
A. Reducing inventory costs
B. Assuming credit risk
C. Providing financial aid
D. Providing a salesforce
The first step in developing an advertising campaign is to define the advertising objectives
A. True
B. False
An order getter is involved with creative selling
A. True
B. False
Coupons cannot be targeted to specific customers
A. True
B. False
A company determines which type of distribution channel to use based on the company’s production capabilities
A. True
B. False
A missionary salesperson sells products primarily for nonprofit organization’s
A. True
B. False
What type of advertising is best for Honda to introduce and promote a new year model national?
A. Local time
B. Spot time
C. Sponsorship
D. Network time
E. Regional time
The main function of promotion is to
A. Increase marketshare
B. Provide information
C. Stabilize sales
D. Enhance the effectiveness of each of the other ingredients of the marketing mix
Institutional advertising promotes specific brands of products and services
A. True
B. False
A direct channel of distribution includes both wholesalers and retailers
A. True
B. False
A retailer buys and sells merchandise
A. True
B. False
Exclusive distribution makes use of all available outlets for a product
A. True
B. False
Inventory holding costs are the cost of storing products until they are purchased or shipped to customers
A. True
B. False
Piggyback service is unique to airfreight
A. True
B. False
Institutional advertising promotes specific brands of products
A. True
B. False
Advertising can be broadly classified into three groups; selective demand, institutional, and primary demand
A. True
B. False
A woman’s apparel manufacture most likely will use
A. Intensive distribution
B. Selective distribution
C. Exclusive distribution
D. High-style distribution
E. Popular style distribution
Category management is
A. A producer deciding which category to concentrate on for the next season
B. A retailer asking the supplier in a particular category how to stock the shelves
C. When suppliers tell the manufacturer which category to produce of
D. When Home Depot decides which category sells the best and decides to concentrate on that category of goods
E. The combined effort of producers and whole sellers to manage the wholesalers inventory
Santa shopping for a new outfit to wear to an awards banquet where he will be honored he has found a beautiful outfit at banana republic and a new pair of shoes at designer shoe warehouse what type of stores are these
A. Warehouse club
B. Convenience
C. Specialty
D. Department
E. Off-price
Which one of the following is an example of a category killer
A. Kmart
B. 711
C. Home Depot
D. Burlington Coat Factory
E. Macy’s
Which activity combines inventory management, order processing, warehousing, material handling, and transportation?
A. Marketing
B. Merchandising
C. Warehousing
D. Physical distribution
E. Transportation
Choose the correct order of the following three of the eight steps in developing an advertising campaign
A. Create the advertising platform; identify and analyze the target audience; define the advertising objectives
B. Identify and analyze the target audience; create the advertising platform; define the advertising objectives
C. Identify and analyze the target audience; define the advertising objectives; create the advertising platform
D. Defined the advertising objectives; identify and analyze the target audience; create the advertising platform
E. Define the advertising objectives; create the advertising platform; identify and analyze the target audience
Sales people may be identified as
A. Expert, order makers, and support personnel
B. Order preparers, ordered trackers, and order receivers
C. Order getters, order takers, and support personnel
D. order getters, order makers, and order receivers
E. Order getters, order dictators, and support personnel
The first step in the personal-selling process is
A. Product display
B. Prospecting
C. Approaching the prospect
D. Organizing the sales pitch
E. Making the presentation

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