Understanding Business Chapter 15

Question 1

Marketing Intermediaries

Answer 1

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

Question 2

Channel of Distribution

Answer 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.

Question 3

Agents and Brokers

Answer 3

Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods they offer.

Question 4

Wholesaler

Answer 4

A marketing intermediary that sells products to other organizations.

Question 5

Retailer

Answer 5

An organization that sells to ultimate customers.

Question 6

Utility

Answer 6

In economics. the want-satisfying ability. or value. that organizations add to goods and services

Question 7

Time Utility

Answer 7

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

Question 8

Place Utility

Answer 8

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

Question 9

Possession Utility

Answer 9

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

Question 10

Information Utility

Answer 10

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

Question 11

Service Utility

Answer 11

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

Question 12

Merchant Wholesalers

Answer 12

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

Question 13

Rack Jobbers

Answer 13

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

Question 14

Cash-and-Carry Wholesalers

Answer 14

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

Question 15

Drop Shippers

Answer 15

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

Question 16

Intensive Distribution

Answer 16

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

Question 17

Selective Distribution

Answer 17

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

Question 18

Exclusive Distribution

Answer 18

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

Question 19

Electronic Retailing

Answer 19

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

Question 20

Telemarketing

Answer 20

The sale of goods and services by telephone.

Question 21

Direct Selling

Answer 21

Selling to customers in their homes or where they work.

Question 22

Direct Marketing

Answer 22

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

Question 23

Corporate Distribution Systems

Answer 23

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

Question 24

Contractual Distribution Systems

Answer 24

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

Question 25

Administered Distribution Systems

Answer 25

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

Question 26

Supply Chain (or value chain)

Answer 26

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

Question 27

Supply Chain Management

Answer 27

The process of managing the movement of raw materials. parts. work in progress. finished goods. and related information through all the organizations involved in the supply chain. managing the return of such goods. if necessary. and recycling materials when appropriate.

Question 28

Logistics

Answer 28

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

Question 29

Inbound Logistics

Answer 29

The area of logistics that involves bringing raw materials. packaging. other goods and services and information from suppliers to producers.

Question 30

Materials Handling

Answer 30

The movement of goods within a warehouse. from warehouses to the factory floor. and from the factory floor to various workstations.

Question 31

Outbound Logistics

Answer 31

The area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me).

Question 32

Reverse Logistics

Answer 32

The area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials.

Question 33

Freight Forwarder

Answer 33

An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.

Question 34

Intermodal Shipping

Answer 34

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