Question 1

Cool Stuff is a business that buys cigarettes,lollies,and gum from many different manufacturers and then resells the items to a variety of different stores.Cool Stuff owns the goods it sells and suffers losses if the products are stolen or become out-of-date.It has developed its own marketing strategy and is an example of a ________.

Accepted Answer

Cool Stuff is an example of a merchant wholesaler because it owns the goods it sells and resells them to a variety of different stores after buying them from different manufacturers. It also suffers losses if the products are stolen or become out-of-date.

Question 2

Sales branches ________.

Accepted Answer

Sales branches are manufacturer-owned facilities that carry inventory and provide sales and services to customers. They operate differently from sales offices, which typically do not carry inventory. Independent wholesalers, as described in option E, are not necessarily specific to selling industrial equipment and are not defined as sales branches. Option A may describe showroom or retail spaces, which are a different concept than sales branches. Option B does not involve carrying inventory, as sales branches do.

Question 3

The producer-retailer-consumer channel is ________.

Accepted Answer

The producer-retailer-consumer channel is the shortest indirect channel, as it involves only one intermediary between the producer and the consumer, which is the retailer.

Question 4

Hybrid marketing systems include ________.

Accepted Answer

Hybrid marketing systems combine multiple methods of distribution and promotion, often including distributors, direct mail, direct sales, and retail sales. The goal is to create a comprehensive approach that reaches a wide range of consumers through various channels. Therefore, all of the choices mentioned (A, B, C, and D) are included in a hybrid marketing system.

Question 5

The first step in deciding on a distribution plan is to ________.

Accepted Answer

The first step in deciding on a distribution plan is to develop appropriate distribution objectives that align with and support the organization's overall marketing plan. This ensures that the distribution strategy is integrated with the broader marketing goals.

Question 6

Sales agents ________.

Accepted Answer

The answer of Sales agents ________.
...

Question 7

Cool Stuff is a business that buys cigarettes,candy,and gum from many different manufacturers and then resells the items to a variety of different stores.Cool Stuff is an example of a/n ________.

Accepted Answer

Cool Stuff acts as an independent intermediary by purchasing products from manufacturers and reselling them to various stores, facilitating the distribution process.

Question 8

Sales branches,sales offices,and manufacturers' showrooms ________.

Accepted Answer

Sales branches, sales offices, and manufacturers' showrooms are all examples of manufacturer-owned intermediaries, as they are owned and operated by the manufacturer to facilitate the distribution of their products.

Question 9

Why would manufacturers use a direct channel of distribution?

Accepted Answer

Manufacturers may choose a direct channel of distribution in order to have more control over the distribution of their product, which could include aspects such as pricing, presentation, and target audience.

Answer: D
 Another reason for manufacturers to use a direct channel of distribution could be to reduce fixed costs associated with production, as they may not need to pay for intermediary services or markup prices for retailers.

Note: A is incorrect because eliminating all channel functions would not allow for any distribution of the product, B may be a factor but not the sole reason for choosing a direct channel, and E is incorrect because the question is specifically addressing manufacturers and their products, not services.

Question 10

In a/n ________ marketing system,two or more firms at the same channel level agree to work together to get their products to the customer.

Accepted Answer

In a horizontal marketing system, two or more firms at the same level in the distribution channel collaborate to achieve greater efficiency or market reach.

Question 11

Which of the following statements about distribution channels for services is true?

Accepted Answer

Insurance is often sold through an indirect channel of distribution, which includes agents and brokers who sell policies on behalf of insurance companies.

Question 12

Once an organisation has developed its distribution objectives,it should then ________.

Accepted Answer

The answer of Once an organisation has developed its distribution...

Question 13

With ________,producers,dealers,wholesalers,retailers,and customers interact with more than one type of channel.

Accepted Answer

Dual distribution systems involve using more than one type of channel to reach customers. This allows producers, dealers, wholesalers, retailers, and customers to interact with multiple channels, which can increase market reach and sales potential.

Question 14

Which of the following statements about a vertical marketing system (VMS)is true?

Accepted Answer

A vertical marketing system (VMS) is a channel in which there is cooperation among channel members at two or more different levels of the channel. This includes a producer, wholesaler, and retailer working together to streamline the distribution process and improve efficiency. The three types of VMS are not authorised, conventional, and customised, as stated in option A, but rather corporate, administered, and contractual. Conventional marketing systems are not necessarily more efficient than VMS, making option B false. Members of a VMS do not operate totally independently of each other as stated in option C, but rather work collaboratively towards common goals. While channel conflict can occur in VMS, it is not necessarily a serious problem as stated in option D.

Question 15

Members of a/n ________ vertical marketing system (VMS)often use a common name,cooperate in advertising and other promotion,and develop their own private-label products.

Accepted Answer

Members of a contractual vertical marketing system work together through contracts and agreements but maintain their own identities and businesses. They often use a common name, cooperate in advertising and promotion, and may even create their own private-label products.

Question 16

Which of the following statements describes conventional marketing systems?

Accepted Answer

The answer of Which of the following statements describes conventional...

Question 17

Which of the following statements about business-to-business channels is true?

Accepted Answer

Direct channels are more common in business-to-business markets because businesses often require customized solutions and direct relationships with suppliers, which are facilitated by direct channels.

Question 18

In a ________,a single channel member controls channel behaviour in order to avoid channel conflict and to create economies through size,eliminating duplication of services,and creating buying bargaining power.

Accepted Answer

A vertical marketing system is formed when a single channel member controls the entire distribution process, from production to retail. This allows the member to avoid conflicts and create efficiencies by eliminating duplication of services and utilizing economies of scale. This is often seen in industries such as grocery stores, where one company may own everything from the farms that produce the goods to the shelves where they are sold.

Question 19

________ are manufacturer-owned facilities that do not carry inventory but provide selling functions for the manufacturer in a specific geographic area.

Accepted Answer

Sales offices are manufacturer-owned facilities that do not carry inventory but focus on selling functions in a specific geographic area.

Question 20

________ distribution aims at maximising market coverage by selling a product through all wholesalers and retailers that will stock and sell the product.

Accepted Answer

Intensive distribution strategy focuses on maximizing market coverage by making the product available through as many wholesalers and retailers as possible. This strategy is used for products that have a mass-market appeal and require a high level of availability to generate sales. Therefore, the best choice for the given description is intensive distribution.

Quiz 14: Delivering Value Through Supply Chains and Logistics