Exam 15: Distributing Products

Playtime Toys, Inc. manufactures toys designed to inspire the imaginations of children. In order to control all of the marketing operations, Playtime owns all of the organizations in the channel of distribution for its toys, including the chain of Playtime retail stores. The approach taken by Playtime is known as an administered distribution system.

In a(n) ________ distribution system all of the organizations in the channel of distribution are owned by one firm.

Cheapo Depot is a new chain of discount stores. A major part of Cheapo Depot's competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.

Which of the following would be the best example of a broker?

The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses. In a selective strategy, a variety of profitable niche markets are selected, while in an exclusive strategy one specific market segment is targeted, and all others are excluded.

Vending machines are used primarily to sell goods where consumers have little interest in convenience.

An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.

The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to store a wide variety of goods for longer periods of time.

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

Epic Electronics has had to shut down its manufacturing plant for several hours twice in the past week. Some of its key suppliers have been late with their shipments of materials and parts. These difficulties indicate that Epic has done a poor job in managing its inbound logistics.

In an administered distribution system, retail stores manage all of the marketing functions at the retail level.

The use of multiple modes of transportation to complete a single long-distance movement of freight is known as multi-carrier shipping.

________ means selling goods and services to ultimate consumers over the Internet.

Pipelines are used primarily to transport water, petroleum, and petroleum products.