Deck 12: Product and Distribution Strategies

Question 1

The appropriate distribution, promotion, and pricing strategies are essentially the same for most business and consumer products.

Answer 1

False

Question 2

A child care centre is an example of a consumer service.

Answer 2

True

Question 3

Most products take about the same amount of time to pass through each life-cycle stage.

Answer 3

False

Question 4

When Arm & Hammer branches out from baking soda into laundry detergent and toothpaste, the company is expanding its product mix.

Question 5

A company's product mix is its assortment of product lines.

Question 6

A company's product line refers to related products that are targeted towards a similar market.

Question 7

In the consumer's mind, the service provider is the service.

Question 8

A company's product line is a group of unrelated products.

Question 9

A new television set is classified as a specialty product.

Question 10

The assortment of cereals manufactured under the Kellogg's name, such as Corn Flakes and Raisin Bran, constitutes the company's product line.

Question 11

Technological changes can compress the life cycle of products.

Question 12

The three categories of business products are convenience goods, shopping goods, and specialty products.

Question 13

A shopping product for one person may be a convenience product for someone else.

Question 14

Most products experience the fastest sales growth during their introductory stages.

Question 15

A product is a bundle of physical, service, and symbolic attributes.

Question 16

A new computer server is classified as an expense item.

Question 17

Goods and services are classified as either consumer or business, depending on the purchaser.

Question 18

Gillette produces several different types of razors. These different types of razors represent Gillette's product mix.

Question 19

All products possess physical characteristics.

Question 20

The early stages of a product's life cycle are generally the most profitable for the company because there is little competition.

Question 21

Many firms skip the test marketing stage of new product development because of high cost associated with it, and the likelihood of revealing product secretes.

Question 22

Global brand names must be selected with care, because an acceptable name in one country may be unacceptable in another country.

Question 23

Price decreases become common during a product's mature stage.

Question 24

When Subway uses selective stores around the country to introduce a new food item, the food item is in the growth stage of its product life cycle.

Question 25

Focus groups are sessions in which customers meet with marketers to express their opinions about products.

Question 26

Promotion activities increase substantially when a product begins to enter the decline stage.

Question 27

A consumer who is at the stage of brand insistence will buy a competing brand only if his or her preferred brand is unavailable.

Question 28

A major cause of product failure is lack of promotional support.

Question 29

The commercialization stage is also known as the product launch.

Question 30

Because test marketing can be very expensive, most firms should use it only if the new product is either expensive or innovative.

Question 31

Many large retailers sell both a private brand and a manufacturer's brand, which are produced by the same manufacturer.

Question 32

Karen is aware of both Coke and Pepsi, but she buys whichever is on sale. Karen is at the stage of brand recognition but NOT yet at the stage of brand preference.

Question 33

A brand or product manager plans and implements promotional, pricing, distribution, and product arrangements.

Question 34

During the maturity stage, firms aggressively protect their market share and distinguish their products from those of competitors.

Question 35

At the declining stage of a product life cycle, new customers are attracted and the firm is on a steady growth to achieve innovative success.

Question 36

A brand may be a name, term, sign, symbol, or design used to identify a product.

Question 37

Trademark protection extends to pictorial designs and slogans.

Question 38

A brand that is offered and promoted by a manufacturer is known as a manufacturer's (or national) brand.

Question 39

Packaging and labelling play a major role in a firm's overall product strategy.

Question 40

Some products can be highly profitable during the later stages of their life cycle because the initial development costs already have been recovered.

Question 41

The two main categories of marketing intermediaries are wholesalers and retailers.

Question 42

The actual movement of products from producers to consumers or business users is known as the distribution channel.

Question 43

A manufacturer would try all possible means to eliminate intermediaries and sell directly to its customers because they add unnecessary cost to customers.

Question 44

Sales offices typically do NOT store or warehouse any inventory.

Question 45

Wholesalers are examples of marketing intermediaries.

Question 46

Lands' End and other catalogue retailers are classified as nonstore, direct sellers of goods.

Question 47

Retailers such as Home Depot and Auto Zone are examples of marketing intermediaries.

Question 48

The two major components of an organization's distribution strategy are direct distribution and the use of marketing intermediaries.

Question 49

Marketers who ship products to other countries are required to comply with labelling requirements in those nations.

Question 50

Retailers sometimes form cooperatives to share common interests and help each other.

Question 51

Physical distribution is the movement of products from producer to user.

Question 52

One advantage of Internet retailing is that adding a large product mix to a website is less costly than making room on a store's shelves.

Question 53

Wholesalers are classified on the basis of their ownership.

Question 54

Vending machines are an example of automatic merchandising.

Question 55

Agents and brokers may take possession of the goods they handle, but they NEVER take title.

Question 56

A marketing intermediary is a person or firm that operates between the producer and the consumer or industrial purchaser.

Question 57

Adding a marketing intermediary to the distribution process often lowers consumer prices.

Question 58

The ultimate preference for brand loyalty is brand preference.

Question 59

Merchant wholesalers are independently owned and take actual title to the goods they handle.

Question 60

Marketing intermediaries provide a number of services to producers, including financing.

Question 61

A bundle of physical, service, and symbolic attributes designed to satisfy customer wants is called ______.

A) the marketing mix
B) packaging
C) a product
D) a brand name

Question 62

To reach a target market with a small number of buyers, a direct distribution channel is often the best choice.

Question 63

According to the wheel of retailing, new types of retailers enter the market and gain a competitive foothold by offering superior service.

Question 64

The first step towards developing a retail strategy is to select a pricing strategy in order to avoid making loss.

Question 65

Complex, expensive products generally require long distribution channels.

Question 66

Retailers base their pricing decisions on the costs of purchasing products from other channel members.

Question 67

Furniture arriving from Denmark to Canada would most likely be shipped via water transportation.

Question 68

The most common market coverage for low-priced convenience items is intensive distribution.

Question 69

A firm's most important consideration in choosing a distribution channel is competition.

Question 70

Because of their size, startup manufacturers are almost always forced to use the services of marketing intermediaries.

Question 71

Retailers are the final link-the so‐called "last three feet"-of the distribution channel.

Question 72

The first step in developing a competitive retailing strategy is choosing a location.

Question 73

The end of the supply chain is when goods or services are delivered to marketing intermediaries.

Question 74

Transportation by truck is extremely economical.

Question 75

Speed is the major contributor to cost.

Question 76

The major goal of logistics management is to improve the speed at which goods, services, and information flow through the supply chain.

Question 77

In a bid to reach a target market of a small number of buyers or customers within a small geographical area, it is recommended that a firm use a variety of marketing intermediaries instead of direct marketing.

Question 78

All firms face two significant challenges of selecting a distribution channel and making a decision regarding the level of distribution intensity.

Question 79

An exclusive distribution contract allows the retailer to carry an adequate inventory and provide service facilities.

Question 80

Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.