Exam 15: Distributing Products

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

A(n) ________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.

Devar was driving on Interstate 95 in eastern Florida when he noticed he was running low on gas. Devar was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.

Drop shippers are wholesalers that stock heavy or bulky items and transport them to retail stores.

A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.

Limited-function wholesalers are a type of merchant wholesaler.

Simon is a personal electronics salesperson for a major retail chain. When he makes recommendations to customers to help them select the product that will best meet their needs, Simon is providing information utility.

In the terminology of multilevel marketing, downliners

Brokers are marketing intermediaries that take title to the goods they help distribute.

Anderson works in the marketing department at Marshall Manufacturing. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm's factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Anderson's job responsibilities focus on

The main way ________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.

Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.

Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.

OfficePRO sells a variety of supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that OfficePRO engages only in

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

A firm that makes wholesale sales cannot also legally make retail sales.

Wholesalers may provide market information and business consulting services.

Corporate distribution systems consist of several independently owned intermediaries, all of them organized as multinational corporations.

Suppliers to large retailers like Target and Walmart may soon be required to use RFID tags when shipping products to these companies.

A problem with the corporate distribution system is that the manufacturer has very little control over the operations of the retailers and other marketing intermediaries in the system.