Deck 13: Distributing and Promoting Products

Question 1

A limited-line wholesaler assumes responsibility for a few wholesale services only.

Answer 1

True

Question 2

A small food store that sells a limited variety of products but remains open well beyond normal business hours is called a convenience store.

Answer 2

True

Question 3

Selective distribution is the use of a single retail outlet in each geographic area.

Answer 3

False

Question 4

Middlemen between the producer and the consumer in the chain of marketing organizations are called marketing intermediaries.

Question 5

Off-price retailers are self-service,general merchandise outlets that sell goods at lower-than-usual prices.

Question 6

A general-merchandise wholesaler carries a select group of products within a single line of merchandise.

Question 7

Intensive distribution is the use of only a portion of the available outlets for a product in each geographic area.

Question 8

In a channel of distribution,the function of wholesaling must be performed,but the wholesaler can be removed.

Question 9

A sales agent provides immediate entry into a territory,regular calls on customers,selling experience,and a known,predetermined selling expense.

Question 10

With warehouse showrooms,a customer selects the merchandise either from a catalog or from the showroom display,fills out an order form provided by the store,and hands the form to a clerk.

Question 11

The most direct channel for consumer products is from producer to retailer to consumer.

Question 12

An independent retailer is a firm that operates more than one outlet and generally provides personal service.

Question 13

Supply chain management primarily focuses on two or more stages of the marketing channel under one management.

Question 14

When a producer wants to give its products the widest possible exposure in the marketplace,it chooses intensive distribution.

Question 15

An intermediary that purchases goods in large quantities,takes title to the merchandise,and then sells it to retailers or business users is called a commission broker.

Question 16

A retail outlet that sells a single category of merchandise is known as a specialty store.

Question 17

Moving products from producer to wholesaler to retailer to consumer is called the traditional channel because most consumer goods are sold this way.

Question 18

Radio shack,Toys "R" Us,and Hickory Farms are example of convenience stores.

Question 19

Every channel of distribution,from the simplest to the most complex,begins with the producer and ends with either the consumer or the business user.

Question 20

Bill Yee was granted franchise rights from McDonald's for the community in which he lives.McDonald's practice of granting franchises for specific geographic areas is commonly known as selective distribution.

Question 21

Direct-response marketing occurs when a retailer advertises a product and makes it available through mail or telephone orders.

Question 22

The makeup of a promotion mix depends on many factors,including a firm's promotional resources and objectives,the target market,the product characteristics,and the feasibility of various promotional methods.

Question 23

A transportation firm that is available for hire by one or several shippers is a private carrier.

Question 24

Public warehouses will hold and issue receipts for goods used as collateral for borrowed funds.

Question 25

A promotion mix can be defined as communication about an organization and its products that is intended to inform,persuade,or remind target-market members.

Question 26

A neighborhood shopping center usually has at least one large department store to attract customers to the center.

Question 27

The fastest but most expensive means of transportation is by air.

Question 28

Vending machines are classified as retail outlets.

Question 29

The combination of promotion methods that a firm uses to reach a target market is called advertising.

Question 30

Railroad and truck carriers team up to provide a form of transportation called camelback.

Question 31

A transportation firm whose services are available to all shippers is a common carrier.

Question 32

A firm with a limited budget for promotion will probably rely on advertising because personal selling is so expensive.

Question 33

In terms of total freight carried,trucks are the most important of transportation.

Question 34

Direct marketing is the marketing of products to customers through face-to-face sales presentations at home or in the workplace.

Question 35

Cristal's Flower Emporium specializes in growing delicate plants for wealthy consumers around the world.Because of the fragile nature of the products,they need to spend as little time as possible in transit.Cristal should use trucks to transport her products.

Question 36

Advertising is a paid nonpersonal message communicated to a select audience through a mass medium.

Question 37

Communication that is intended to inform,persuade,or remind an organization's target markets about the organization and its products is called promotion.

Question 38

A category killer is a very large specialty store that concentrates on a single product line and competes by offering low prices and an enormous number of products.

Question 39

Neighborhood shopping centers often promote the center and the tenants as a group.

Question 40

Advertising may be broadly classified into three groups: selective-demand,institutional,and primary-demand.

Question 41

A television commercial describing why Sure antiperspirant works better than Right Guard antiperspirant is an example of primary-demand advertising.

Question 42

Personal selling in support of the sales efforts of other intermediaries is called creative selling.

Question 43

Order takers handle repeat sales in ways that maintain positive relationships with customers.

Question 44

A primary benefit of magazine advertising is the advertisement's life span.

Question 45

A frequent-user incentive is a gift that a producer offers a customer in return for using its product.

Question 46

Missionary selling consists of processing the purchases of customers who have essentially decided what they wish to buy.

Question 47

A punchcard that an ice cream store punches for each ice cream purchase and allows one free cone after five purchases is an example of a premium.

Question 48

Coupons are sent to consumers by direct mail.

Question 49

The objectives of public relations are to create and maintain a favorable public image.

Question 50

Don Martin owns DME Ads Inc.,an advertising agency.At present,the company focuses on advertising only.However,Don plans to expand the company's focus to include all the major elements of an organization's promotional mix.Don feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion.Currently,the firm organizes its work according to the media being used.Don believes this is the most effective way to subdivide advertising.Since television is the most widely used advertising medium,the company spends most of its time on television advertising.DME knows what it takes to get the job done,and it is committed to success.
Refer to DME Ads Inc.As Don plans to expand the company's focus to other major elements of the promotion mix,which of the following should he focus on if he wants to help his clients create and maintain favorable relationships between them and their various internal and external groups?

A) Word-of-mouth
B) Sales promotion
C) Rebates
D) Public relations
E) Personal selling

Question 51

Institutional advertising is by far the most common type of advertising and receives the largest share of advertising expenditures.

Question 52

A feature article is a type of publicity that is generally one typed page of about three hundred words.

Question 53

Determining the location and demographics of people in the advertising target,the content of the message,and the characteristics of the audiences reached by various media is done when creating the advertising message.

Question 54

The major arguments against advertising are that it is wasteful and that it can be deceptive.

Question 55

Publicity is a free package or container of a product sent to consumers in the mail.

Question 56

Most local firms use immediate-response advertising.

Question 57

Newspapers,magazines,television,radio,and direct mail are all examples of advertising media.

Question 58

Advertising appropriation should be based on the historical average of the company's advertising expenditure.

Question 59

Selective-demand advertising is advertising designed to enhance a firm's image or reputation.

Question 60

Radio advertising is the most expensive advertising medium.

Question 61

The distribution channel most likely to be used for a new car is producer to

A) wholesaler to retailer to consumer
B) consumer
C) agent to wholesaler to retailer to consumer
D) business user
E) retailer to consumer

Question 62

P&T Inc.
P&T Inc.is an emerging company that wants to focus on personal selling,sales promotion,and public relations activities.P&T's management understands that personal selling is about the personal communication aimed at customers,but they feel that determining more specifics about the products they sell will allow them to better achieve their goal.Another important route they would like to take is to learn more about the various types of sales promotion.Finally,management would like to focus more on publicity-based PR.By concentrating on these areas,the company believes that it will be able to successfully create a promotional campaign.
Refer to P&T Inc.P&T management knows that ____ is the most effective and least expensive means of communicating product information to a large number of individuals and organizations.

A) advertising
B) personal selling
C) sales promotion
D) public relations
E) corporate promotion

Question 63

P&T Inc.
P&T Inc.is an emerging company that wants to focus on personal selling,sales promotion,and public relations activities.P&T's management understands that personal selling is about the personal communication aimed at customers,but they feel that determining more specifics about the products they sell will allow them to better achieve their goal.Another important route they would like to take is to learn more about the various types of sales promotion.Finally,management would like to focus more on publicity-based PR.By concentrating on these areas,the company believes that it will be able to successfully create a promotional campaign.
Refer to P&T Inc.P&T management could use sales promotions for any of the following objectives except:

A) to attract new customers.
B) to boost sales to current customers.
C) to reinforce advertising.
D) to steady increasing sales patterns.
E) to improve shelf space and displays.

Question 64

P&T Inc.
P&T Inc.is an emerging company that wants to focus on personal selling,sales promotion,and public relations activities.P&T's management understands that personal selling is about the personal communication aimed at customers,but they feel that determining more specifics about the products they sell will allow them to better achieve their goal.Another important route they would like to take is to learn more about the various types of sales promotion.Finally,management would like to focus more on publicity-based PR.By concentrating on these areas,the company believes that it will be able to successfully create a promotional campaign.
Refer to P&T Inc.If P&T management chose to return a portion of a product's purchase price as a sales promotion method,it would be referred to as which of the following?

A) Sample
B) Rebate
C) Premium
D) Coupon
E) Direct mail

Question 65

Don Martin owns DME Ads Inc.,an advertising agency.At present,the company focuses on advertising only.However,Don plans to expand the company's focus to include all the major elements of an organization's promotional mix.Don feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion.Currently,the firm organizes its work according to the media being used.Don believes this is the most effective way to subdivide advertising.Since television is the most widely used advertising medium,the company spends most of its time on television advertising.DME knows what it takes to get the job done,and it is committed to success.
Refer to DME Ads Inc.Which of the following terms refers to the type of advertising DME would use to increase the demand for all brands of a product within a specific industry?

A) Brand advertising
B) Selective-demand advertising
C) Corporate advertising
D) Primary-demand advertising
E) Institutional advertising

Question 66

P&T Inc.
P&T Inc.is an emerging company that wants to focus on personal selling,sales promotion,and public relations activities.P&T's management understands that personal selling is about the personal communication aimed at customers,but they feel that determining more specifics about the products they sell will allow them to better achieve their goal.Another important route they would like to take is to learn more about the various types of sales promotion.Finally,management would like to focus more on publicity-based PR.By concentrating on these areas,the company believes that it will be able to successfully create a promotional campaign.
Refer to P&T Inc.During which step of the personal selling process should an P&T salesperson ask the prospect to buy the product?

A) Closing the sale
B) Prospecting
C) Answering objections
D) Approaching the prospect
E) Making the advertisement

Question 67

Two Manufacturing produces candy bars.The company would probably choose which of the following to reach its target market?

A) Variable marketing system
B) Exclusive distribution
C) Selective distribution
D) Intensive distribution
E) Selective agents

Question 68

All of following are basic factors in the selection of a channel of distribution except the

A) firm's production capability and marketing resources.
B) target market.
C) type of transportation to be used.
D) buying patterns of potential customers.
E) product itself.

Question 69

A sequence of organizations that directs a product from the producer to the ultimate user is called a(n)_____.

A) intermediary network
B) catalog discount showroom
C) transporter
D) distribution channel
E) distributorship

Question 70

M.C.Grant Co.assists art supplies manufacturers in transferring their products to retail outlets by matching up producers and retailers without actually taking title to the goods.M.C.Grant Co.would be classified as a _____.

A) functional middleman
B) merchant middleman
C) retailer
D) producer
E) channel of distribution

Question 71

P&T Inc.
P&T Inc.is an emerging company that wants to focus on personal selling,sales promotion,and public relations activities.P&T's management understands that personal selling is about the personal communication aimed at customers,but they feel that determining more specifics about the products they sell will allow them to better achieve their goal.Another important route they would like to take is to learn more about the various types of sales promotion.Finally,management would like to focus more on publicity-based PR.By concentrating on these areas,the company believes that it will be able to successfully create a promotional campaign.
Refer to P&T Inc.If the managers at P&T were interested in implementing the most widely used type of publicity,they should utilize which of the following?

A) News release
B) Captioned photograph
C) Point-of-purchase display
D) Feature article
E) Press conference

Question 72

Convenience goods such as candy,gum,and cigarettes are normally distributed using _____ distribution.

A) exclusive
B) intensive
C) patterned
D) intentional
E) selective

Question 73

A general term for a middleman that actually buys from producers or other middlemen and then resells goods to consumers is a _____.

A) functional middleman
B) broker
C) retailer
D) sales agent
E) merchant middleman

Question 74

The use of only a portion or percentage of the available outlets in each geographic area for market exposure is called _____ distribution.

A) exclusive
B) intensive
C) selective
D) patterned
E) indirect

Question 75

Don Martin owns DME Ads Inc.,an advertising agency.At present,the company focuses on advertising only.However,Don plans to expand the company's focus to include all the major elements of an organization's promotional mix.Don feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion.Currently,the firm organizes its work according to the media being used.Don believes this is the most effective way to subdivide advertising.Since television is the most widely used advertising medium,the company spends most of its time on television advertising.DME knows what it takes to get the job done,and it is committed to success.
Refer to DME Ads Inc.DME recently created advertising for Maruti Automobiles for its new line of cars called Maruti Marvels.Such brand-oriented advertising is called _____.

A) primary-demand advertising
B) selective-demand advertising
C) institutional advertising
D) individualized advertising
E) private advertising

Question 76

Don Martin owns DME Ads Inc.,an advertising agency.At present,the company focuses on advertising only.However,Don plans to expand the company's focus to include all the major elements of an organization's promotional mix.Don feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion.Currently,the firm organizes its work according to the media being used.Don believes this is the most effective way to subdivide advertising.Since television is the most widely used advertising medium,the company spends most of its time on television advertising.DME knows what it takes to get the job done,and it is committed to success.
Refer to DME Ads Inc.In developing the advertising campaign for a client,in which of the following steps should DME include the important selling points or features of the client's products?

A) Identifying and analyzing the industry.
B) Defining the advertising objectives.
C) Creating the advertising platform.
D) Determining the advertising appropriation.
E) Developing the media plan.

Question 77

Which of the following channels in known as the direct channel?

A) Producer to consumer
B) Producer to middleman to business user
C) Producer to retailer to consumer
D) Producer to wholesaler to retailer to consumer
E) Producer to middleman

Question 78

Marketing organizations that link producer and consumer within a marketing channel are called _____.

A) distributorships
B) warehousing groups
C) marketing intermediaries
D) shopping centers
E) supermarkets

Question 79

The Spirit connection buys team logo gear from manufacturers and then sells the gear directly to consumers.The Spirit connection is a _____.

A) wholesaler
B) functional middleman
C) producer
D) retailer
E) business user

Question 80

Polly,Inc.purchases supplies such as paper and seat covers directly from manufacturers and then sells them to other firms.Polly,Inc.is a(n)_____.

A) retailer
B) wholesaler
C) functional middleman
D) agent
E) producer