Exam 15: Distributing Products

The two basic types of merchant wholesalers are

Providing buyers with credit terms such as "90 days same as cash" is a way marketing intermediaries can provide time utility to customers.

The types of utility commonly provided by marketing intermediaries include

Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as

In the U.S. the largest percentage of goods (by volume) is shipped by truck.

Producers normally provide form utility, but retailers sometimes also provide this type of utility.

Cozy Corner Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Cozy Corner, its suppliers, and the marketing intermediaries are all part of a supply chain.

A(n) ________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

After developing a new jewelry design, Christina and Julee were fortunate to get the attention of a large online retailer. The retailer was willing to fund the production of the jewelry abroad, as long as the designers agreed to sell their design through its outlets for the first two years. The retailer was asking Christina and Julee to agree to

Although air transport currently accounts for only a small percentage of all shipments, it has become a critical mode in many industries.

A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. "Mark has already suggested doing some of the retailer's job for them. I say go even further-let's just do away with all of the intermediaries. We can perform all of their functions ourselves," she said. She went on to explain that, "Since we won't have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically." What do you think of Rhea's suggestion?

Outdoor Adventures, Inc. operates a chain of very large stores that offer an incredible selection of sporting goods at very competitive prices. When Outdoor Adventures opens its first store in a new region, smaller sporting goods stores almost always experience a noticeable drop in sales. Outdoor Adventures stores can be classified as

In a corporate distribution system one firm owns all of the organizations in the distribution.

Which of the following activities would drop shippers be most likely to perform?

Salespeople can be important providers of information utility.

A large number of traditional retailers have developed online stores, giving customers a choice of shopping techniques.

Manufacturers are usually able to perform marketing functions, such as transporting, advertising, and storing, faster and more cheaply than marketing intermediaries.

Brendan is a salesperson for Garden Gnomes Lawn Care products. His job requires him to sell Garden Gnomes' products, but he is also expected to recruit more salespeople for the company. He will earn a commission on all of the sales earned by the salespeople he recruits. Garden Gnomes is using a retail distribution strategy known as multilevel marketing.