Question 1

What is a primary difference between an industrial distributor and a manufacturers' agent?

Accepted Answer

The primary difference between an industrial distributor and a manufacturers' agent is that a manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. A manufacturers' agent acts as a middleman between the manufacturer and the buyer, while an industrial distributor takes ownership of and physically distributes the products.

Question 2

Many companies use more than one marketing channel to distribute their products to the same target market,a tactic called

Accepted Answer

Dual distribution is the tactic where a company uses two or more marketing channels to distribute their products to the same target market. This can include selling through their own website as well as partnering with retailers to sell their products in-store. Dual distribution offers more opportunities to reach customers and increases the likelihood of sales.

Question 3

The three major levels of intensity at which a company can choose to distribute its products are ____ distribution.

Accepted Answer

The three major levels of distribution intensity are exclusive, selective, and intensive. Exclusive distribution involves limiting the number of intermediaries, selective distribution uses more than one but fewer than all intermediaries, and intensive distribution aims to provide widespread availability.

Question 4

Which of the following is least likely to be a factor affecting the selection of marketing channels?

Accepted Answer

Product packaging may affect the physical distribution and transportation of the product but it is not a major factor in selecting marketing channels. Customer characteristics, product attributes, competition, and environmental forces are all important factors in selecting marketing channels as they determine the target market, product positioning, and distribution strategies.

Question 5

Rob Stevens is the head of a company that produces computer software for production scheduling.The firm is small and presently does not generate enough volume to justify hiring a sales force.The firm is probably using ____ to maintain contact with the firms using its products.

Accepted Answer

Agents are individuals or firms who represent a company and help them maintain contact with their clients. In this case, since the company is small and does not have a sales force, it is likely that they are using agents to maintain contact with their clients who are using their software. The other options, such as wholesalers, brokers, merchants, and retailers, do not fit the description of what the company is doing to maintain contact with their clients.

Question 6

Which of the following is an advantage of using an industrial distributor?

Accepted Answer

The answer of Which of the following is an advantage...

Question 7

Sales are most likely to have a direct relationship to product availability for products that use ____ distribution.

Accepted Answer

Intensive distribution refers to making the product available at as many outlets as possible, increasing the likelihood of it being easily accessible to potential buyers. Therefore, sales are most likely directly related to product availability for products that use intensive distribution.

Question 8

When Busch Light Beer was introduced as part of the Anheuser-Busch product line,the company most likely used ____ distribution.

Accepted Answer

Intensive distribution is used when a brand wants to reach as many consumers as possible through as many outlets as possible. This strategy is usually used for convenience products like beer, which are bought frequently and in many locations. Therefore, the best choice would be intensive distribution for Busch Light Beer.

Question 9

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

Accepted Answer

When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force, a channel that includes both a manufacturers' agent and an industrial distributor is appropriate. The agent can provide specialized knowledge of the new market while the distributor can handle the logistics of getting products to customers. This allows the marketer to expand their reach without incurring the cost of hiring and training a new sales force.

Question 10

Candy bars and chewing gum are most likely to be distributed through ____ and ____.

Accepted Answer

Candy bars and chewing gum are fast-moving consumer goods and are widely available through intensive distribution, which requires placing the products in a large number of outlets to ensure maximum availability and convenience for customers. In the case of candy bars and chewing gum, convenience stores, gas stations, grocery stores, and vending machines are primary channels. These products are also likely to be distributed through dual distribution, which involves utilizing two or more channels to reach the target market. For example, Mars, the maker of Snickers, distributes its candy bars through both traditional retail channels and vending machines. Therefore, options B is the best answer.

Question 11

Producers of convenience products such as soft drinks,toothpaste,and breath mints are most likely to use ____ distribution.

Accepted Answer

Producers of convenience products typically use intensive distribution, which involves placing their products in as many retail outlets as possible to ensure easy availability and accessibility for customers. This is because convenience products have a high demand and require frequent replenishment, and consumers are less likely to travel long distances to purchase them. Selective distribution involves limiting distribution to a select number of outlets, while exclusive distribution involves only selling through one or very few outlets. Extensive distribution involves placing products in as many outlets as possible, which is appropriate for convenience products. Demand-based distribution is not a commonly recognized type of distribution.

Question 12

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers.It markets ketchup for institutional use through industrial distributors and food brokers.Del Monte is using

Accepted Answer

Del Monte's method of marketing ketchup through both supermarket channels and institutional channels (through industrial distributors and food brokers) is an example of dual distribution.

Question 13

When considering the best channel to use,all of the following are true with regard to larger firms except they

Accepted Answer

The statement "they may be better suited to serve customers in a particular region" is not necessarily true for larger firms. In fact, smaller firms may have a better understanding and expertise in serving customers in a particular region, as they may have more localized knowledge and connections.

Question 14

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)

Accepted Answer

A manufacturers' agent is an independent businessperson who sells complementary products of different producers in an assigned territory without actually taking title of the merchandise. They receive a commission for their sales and do not take possession of the products like a distributor would. The other options (sole intermediary, producers' broker, industrial distributor, and channel facilitator) do not accurately describe this type of intermediary.

Question 15

Fragile products that require special handling are more likely to be distributed through

Accepted Answer

Fragile products are typically distributed through shorter channels to minimize handling and reduce the risk of damage during transportation.

Question 16

Using only some of the available outlets to distribute a product is called

Accepted Answer

Selective distribution refers to using only a limited number of outlets to distribute a product. This strategy is often used for products that require special handling or are targeted at a specific market segment. It allows the manufacturer to maintain greater control over how the product is sold and ensures that it is only available in locations that are likely to attract the target market.

Question 17

In marketing a new line of nursery furniture for infants and small children,the Fisher Company will most likely use ____ distribution for the products.

Accepted Answer

Selective distribution involves distributing products to a limited number of retailers who meet certain qualifications, such as having a certain level of sales or meeting specific demographic criteria. This would be the best choice for a new line of nursery furniture, as it allows the Fisher Company to control which retailers carry their products and ensure they are marketed to the right target audience. It also allows for a balance between availability and exclusivity, as the products will be available in enough locations to attract customers, but not so widely available that they lose their appeal.

Question 18

Gateway Computer makes computers available through its own stores,its toll-free telephone line,and a website.This is an example of

Accepted Answer

Dual distribution refers to a distribution strategy where a company uses multiple channels to reach customers. In this case, Gateway Computer is using its stores, telephone line, and website to sell its products, which is an example of dual distribution. Vertical integration refers to a company acquiring other companies in the same industry to control the supply chain. Horizontal integration refers to a company expanding its product offerings by acquiring or merging with a company in the same industry. Tying agreements refer to a practice where a company forces customers to buy one product to get another. Exclusive dealing refers to a situation where a company sells its products exclusively through one retailer or distributor.

Question 19

Starbucks has an agreement with Pepsi Co.through which Pepsi distributes Starbucks' coffee drink,Frappucino,to grocery stores and other retail outlets.This is an example of

Accepted Answer

This is an example of a strategic channel alliance where two companies collaborate to distribute a product to a wider audience. Starbucks and Pepsi Co have joined hands to distribute Starbucks' coffee drink, Frappuccino, to grocery stores and other retail outlets.

Question 20

A producer is not likely to receive ____ from an industrial distributor.

Accepted Answer

An industrial distributor is likely to promote its own brand and products instead of the producer's brand. Therefore, a producer is not likely to receive aggressive promotion of its brand from an industrial distributor.

Quiz 14: A Supply Chain Management and Marketing Channels