Chapter 15: Distributing Products

Question 1

marketing intermediaries (middlemen)

Answer 1

organizations that assist in moving goods and services (B2B) and (B2C) (producer to businesses and business to consumer)
Ex: real estate agents

providing convenience
performing necessary activities such as storage and transportation
reducing the number of exchanges between producers and buyers

Question 2

channel of distribution

Answer 2

whole set of marketing intermediaries (agents, brokers, wholesalers, retailers) who join together to transport or store goods and thus channel goods from producers to consumers

Question 3

agents/brokers

Answer 3

bring buyers and sellers together and negotiate exchange of goods, but have no ownership over the product (to ponder: real estate)

Question 4

wholesaler

Answer 4

sells, usually large quantities of goods at low prices, to other organizations such as manufacturers, hospitals, and retailers (B2B system)

**Selling products to specific stores so that each store has its own unique inventory
Selling products to a company for internal use in production is wholesaling.
Selling products to a school or hospital to run their business is considered a wholesale transaction

Question 5

retailer

Answer 5

purchases from a manufacturer and then sells to ultimate consumers

Question 6

utility

Answer 6

satisfies a want or need

Question 7

form utility

Answer 7

juse of raw materials to form products

Question 8

time utility

Answer 8

products are available when they are needed

Question 9

place utility

Answer 9

products are placed where people want them

Question 10

possession utility

Answer 10

transfer of ownership from one party to another (includes: providing credit, delivery, and installation)

Question 11

information utility

Answer 11

two way flows between marketing participants

Question 12

service utility

Answer 12

friendly service during and after the sale and providing customers with information on how to best use a product over time

Question 13

merchant wholesalers

Answer 13

independently owned firms that take the title of gods they handle (ownership)

-full-service wholesalers: perform all distribution functions (maintain inventory, communicate advertising deals, transport good, provide capital, assume risk) 
-limited function wholesalers: perform select functions, but do them very well (rack jobbers, cash-and-carry wholesalers, drop shippers)

Question 14

rack jobbers

Answer 14

furnish racks of shelves with merchandise and display products and keep them on consignment (have the title until the goods are sold and once they are, they share profits with the retailer)

Question 15

Cash-and-carry wholesalers

Answer 15

serve smaller retailers with limited assortment of products (retialers pay these wholesalers in cash and afterwards take the products to their stores)

Question 16

Drop shippers*

Answer 16

merchandise shipped directly from a producer to a buyer and solicit order from retailers/wholesalers (tend to handle bulky products like coal, lumber, and chemicals)

Question 17

Intensive distribution

Answer 17

products are placed in as many retail outlets as possible and are considered wide-scale convenience goods like candy

Question 18

Selective distribution:

Answer 18

Uses a preferred group of available retailers in an area to ensure
Quality of goods and services

Question 19

Exclusive distribution

Answer 19

Only one retailer outlet in a given geographic area (retailers have exclusive rights to sell the product, carry a large inventory, and give exceptional service) monopoly? (example: skydiving equipment)

Question 20

non store retailing

Answer 20

self-explanatory

Question 21

Online retailing

Answer 21

selling goods and services to the ultimate customer online

Question 22

telemarketing

Answer 22

sale of goods and services by phone

Question 23

vending machines, kiosks (automated machines in McD’s, carts, pop ups)

Answer 23

types of non store retailing

Question 24

direct selling

Answer 24

reaches customers in their homes and workplaces (ads at an event for example)

Question 25

multilevel marketing

Answer 25

salespeople who act as independent contractors and create commissions from downliners (low cost of entry to those who recruited them) and receive commission from upliners
-have the incentive to recruit more salespeople in order to receive a commission on the sales made by the people that they recruit

Question 26

cooperation distribution system

Answer 26

one firms owns all organizations in a channel (manufacturer for example)

Question 27

contractual distribution system

Answer 27

members cooperate through contractual agreements (franchises, wholesale-sponsored chains like IGA that have a unified system but operate independently, retail cooperatives=focus on or buy one wholesaler)

Question 28

Administered distribution system:

Answer 28

producers manage the marketing function at the retail level

All used to compete with online retailers to be more efficiency than them

Question 29

Supply chain

Answer 29

linked activities of various organizations to move goods and services from the raw material form to the ultimate customer

Question 30

Supply-chain management:

Answer 30

management of ^^ and using information to guage efficiency and recycling materials when necessary

Question 31

Inbound logistics

Answer 31

raw materials, packaging, goods and services, and information form suppliers to producers

Question 32

Material handling

Answer 32

movement of goods: warehouse>factory floor> various workstations

Question 33

Outbound logistics:

Answer 33

manages the flow of finished products and information to business buyers and the ultimate customers

Question 34

Reverse logistics:

Answer 34

goods back to the manufacturer due to defects or recycled materials

Question 35

third party

Answer 35

outside firms help to move goods and services

Question 36

freight forwarder

Answer 36

combines small shipments together to create a single large one that in transported cost effectively by truck or train (most used for volume)
-truck transport is good for smaller distances (2nd most used)
-pipleines are fast and efficienct (for coal?)
-air transportation is fast but expensive
-water transportation is inexpensive but slow

Question 37

intermodal shipping

Answer 37

multiple modes of transportation: highway, air, water, rail to accomplish an efficient movement of freight over a long distance

Question 38

Agents who represent producers are known as manufacturers agents or sales agents. As long as they do not __________, manufacturers can represent several manufacturers in a specific territory

Answer 38

Represent competing products

Question 39

Category Killer

Answer 39

One store that sells a huge variety of one type of product in order to dominate a market for that product (barnes and noble)