Chapter 15

Question 1

Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).

Answer 1

Marketing Intermediaries

Question 2

A whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers.

Answer 2

Channel of Distribution

Helps ensure the flow of communication and money

Question 3

Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods.

Answer 3

Agents/Brokers

Question 4

A marketing intermediary that sells to other organizations.

Answer 4

Wholesaler

Question 5

An organization that sells to ultimate consumers

Answer 5

Retailer

Question 6

Why are marketing intermediaries needed

Answer 6

They perform marketing task such as transport, storing, selling, and relationship building better and cheaper.

Question 7

What are the three points of intermediaries and why they add value for the cost

Answer 7

1. Intermediaries can be eliminated, but their functions can’t.
2. They have survived because they perform marketing functions better and cheaper than others.
3. They add cost, but those are normally offset by the value they add.

Question 8

In economics, the want-satisfying ability, or value, that organizations add to goods or services when the products are made more useful or accessible to consumers than they were before.

Answer 8

Utility

Question 9

Time utility

Answer 9

Adding value to products by making them available when they’re needed.

Question 10

Adding value to products by having them where people want them.

Answer 10

Place utility

Question 11

Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.

Answer 11

Possession utility

Question 12

Adding value to products by opening two-way flows of information between marketing participants.

Answer 12

Information utility

Question 13

Adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.

Answer 13

Service utility

Becoming the most important

Question 14

What’s the difference between a retail sale and a wholesale?

Answer 14

A retail sale is the sale of G&S to consumers for personal use and a wholesale is the is the sale of G&S to businesses for use in the business or wholesalers for resale.

Question 15

Independently owned firms that take title to the goods they handle.

Answer 15

Merchant wholesalers

80% of whole sellers fall into this category

Question 16

Name and describe the two types of merchant wholesalers

Answer 16

Full-service - perform all the distribution functions

Limited Function wholesalers - perform select functions very well.

Question 17

Wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.

Answer 17

Rack jobbers

Question 18

Wholesalers that serve mostly smaller retailers with a limited assortment of products.

Answer 18

cash-and-carry wholesalers

Question 19

Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.

Answer 19

Drop shippers

Question 20

Distribution that puts products into as many retail outlets as possible.

Answer 20

Intensive Distribution

Question 21

Distribution that sends products to only a preferred group of retailers in an area.

Answer 21

Selective distribution

Question 22

Distribution that sends products to only one retail outlet in a given geographic area.

Answer 22

Exclusive distribution

Question 23

Retailing such as vending machines, telemarketing, kiosks, and online that open new channels of distribution for products

Answer 23

Non-store retailing

Question 24

Selling goods and services to ultimate customers (e.g., you and me) over the Internet.

Answer 24

online retailing

Question 25

A form of electronic commerce that involves using social media, online media that support social interaction, and user contributions to assist in the online buying and selling of products and services.

Answer 25

Social Commerce

Question 26

The sale of goods and services by telephone.

Answer 26

Telemarketing

Question 27

Selling to consumers in their homes or where they work.

Answer 27

Direct selling

Question 28

Marketing where sales people work as contractors and generate commissions for the people above them while people below generate commission for them

Answer 28

Multilevel Marketing

Question 29

Any activity that directly links manufacturers or intermediaries with the ultimate consumer.

Answer 29

Direct Marketing

Question 30

How can traditional retailers compete with online retailers

Answer 30

Become so efficient they can beat them on cost.

Question 31

what are the four formal relationships that can link firms together for increased efficiency

Answer 31

Corporate systems
Contractual systems
administered systems
supply chains

Question 32

A distribution system in which all of the organizations in the channel of distribution are owned by one firm.

Answer 32

Corporate Distribution System

Question 33

A distribution system in which members are bound to cooperate through contractual agreements.

Answer 33

Contractual distribution system

Question 34

A distribution system in which producers manage all of the marketing functions at the retail level.

Answer 34

Administered Distribution system

Question 35

The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers.

Answer 35

Supply chain (value chain)

Question 36

The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Answer 36

Logistics

Question 37

What are the 7 R’s of logistics

Answer 37

Right Product
Right Place
Right customer
Right time
Right quantity
Right condition
Right Price

Question 38

The use of multiple modes of transportation to complete a single long-distance movement of freight.

Answer 38

Intermodal shipping