Question 1

Kidder Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Wayback Shipping, Inc., to find out what the shipment would cost. Wayback has shown Kidder how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. Wayback's strategy is an example of:
A) online shipping.
B) intermodal shipping.
C) supply chain shipping.
D) multilevel distribution.

Accepted Answer

Wayback Shipping's strategy of combining different modes of transportation (barges, trains, and trucks) to complete the shipment at a low cost is an example of intermodal shipping. Intermodal shipping is the use of multiple modes of transportation to move goods from one location to another, typically with the use of standardized containers.

Question 2

Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-Dee's comments about the need to get Lite Bite products into additional retail outlets suggests the company wants to use a(n):
A) intensive distribution strategy.
B) multilevel marketing strategy.
C) intermodal distribution network.
D) selective distribution strategy.

Accepted Answer

An intensive distribution strategy involves making a product available in as many retail outlets as possible. This aligns with Dee's comments about the need to get Lite Bite products into as many stores as possible and ensuring they are displayed and promoted effectively. A multilevel marketing strategy involves using independent salespeople to reach consumers, which is not mentioned in the case. An intermodal distribution network involves using multiple modes of transportation to move products, which is not mentioned in the case. A selective distribution strategy involves limiting the number of retail outlets that carry a product to maintain a certain level of exclusivity, which is not in line with the stated goal of getting Lite Bite products into as many stores as possible.

Question 3

Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets. Mark appears to be suggesting that Lite Bite use a(n):
A) corporate distribution system.
B) franchise arrangement.
C) manufacturer-sponsored marketing chain.
D) administered distribution system.

Accepted Answer

Mark's suggestion of managing marketing functions at the retail outlets suggests using an administered distribution system, where the manufacturer manages the marketing functions for their products within the retail outlets. A corporate distribution system involves the manufacturer owning and controlling the distribution channels, while a franchise arrangement would involve Lite Bite licensing their products to be sold by independent franchisees who would manage marketing functions independently. A manufacturer-sponsored marketing chain involves multiple manufacturers collaborating to distribute their products through a joint marketing effort, which is not relevant to Lite Bite's situation. Therefore, the best choice is D, an administered distribution system.

Question 4

Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

Accepted Answer

The answer of Identify and describe the four basic types...

Question 5

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?
A) Rack jobbers
B) Cash-and-carry wholesalers
C) Piggy-backers
D) Freight forwarders

Accepted Answer

Freight forwarders specialize in organizing shipments for small manufacturers that don't fill a whole truck or railcar. They consolidate smaller shipments from multiple companies into one larger shipment, which can save money on transportation costs. Rack jobbers are wholesalers that specialize in setting up and maintaining displays of merchandise in retail stores. Cash-and-carry wholesalers require buyers to pay cash and transport the goods themselves. Piggy-backers use the transportation infrastructure of another carrier to move the goods. None of these options would be as helpful for a small manufacturer with small shipments as a freight forwarder.

Question 6

Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm's __________ more efficient.
A) internal logistics
B) outbound logistics
C) materials handling
D) factory processes

Accepted Answer

The answer of Jen Carter is trying to find ways...

Question 7

Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-The need for Lite Bite to recall its almond chocolate bars suggests that it had to be very concerned with:
A) outbound logistics.
B) reverse logistics.
C) administered distribution.
D) drop shipping.

Accepted Answer

Lite Bite's recall of its almond chocolate bars indicates that it had to deal with reverse logistics, which involves the process of managing the return and disposal of defective or contaminated products from the customer back through to the manufacturer.

Question 8

Explain why you agree or disagree with the following statement:
"Marketing intermediaries must charge a high enough price for the functions they perform to earn a profit. Therefore, the cost of distributing goods can almost always be reduced by eliminating marketing intermediaries from the channel of distribution."

Accepted Answer

The answer of Explain why you agree or disagree with...

Question 9

Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-After listening to all of the challenges and issues, Rhea said she wanted to propose a more sweeping change. "Mark has already suggested doing some of the retailer's job for them. I say go even further-let's just do away with all of the intermediaries. We can perform all of their functions ourselves," she said. She went on to explain that, "Since we won't have to deal with intermediaries, my suggestion is bound to simplify the distribution process and cut costs dramatically." Rhea's suggestion:
A) is truly radical because it calls for the elimination of the entire supply chain.
B) is an example of an administered and contractual distribution system.
C) should be viewed with some skepticism, because it ignores the fact that intermediaries usually create enough value to justify their inclusion in the distribution process.
D) is not really very radical, since most manufacturing firms in recent years have used this approach to bring about dramatic reductions in their costs of distribution.

Accepted Answer

Rhea's suggestion to eliminate all intermediaries in the supply chain should be viewed with some skepticism because intermediaries usually create enough value to justify their inclusion in the distribution process. While there may be some cost savings in eliminating intermediaries, it is unlikely that the company can completely take over all of the functions performed by intermediaries at a lower cost while still providing the same level of value to customers. Therefore, it is important to carefully evaluate the costs and benefits of any proposed changes to the distribution process.

Question 10

What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.

Accepted Answer

The answer of What is a wholesaler? Describe the difference...

Question 11

Mini-Case
"We've got a number of important issues to discuss today," began Dee Stribyute as she opened the weekly marketing manager's meeting for Lite Bite Foods. Lite Bite is a producer of low fat, low calorie snack foods. The other managers attending the meeting were her two top assistants, Mark Etter and Rhea Taylor.
"First, sales were hurt last year when we had to recall our almond chocolate bars because of concerns about contaminated ingredients. We've got our work cut out for us to recover from that setback. Many stores quit carrying our products, and even the ones that continued to do so put less emphasis on displaying and promoting them. We've got to get our products into as many stores as possible. Consumers shouldn't have to go all over town trying to find our snacks. We also need to make sure that our products are displayed and promoted in a way that attracts attention." Dee looked at her assistants, and saw that they seemed ready to make some proposals. However, she decided to get another important issue out on the table before stopping to discuss solutions, so she continued with her comments. "The other big concern is the cost of moving our goods. Distribution costs are a major part of the overall cost of selling our goods. What can we do to make the flow of products from our kitchens to our ultimate consumers more efficient?" Having laid out her concerns, Dee sat down at the head of the table, saying to her assistants, "O.K. guys, I'm ready for suggestions."
-Currently, Lite Bite uses a lot of intermediaries to help distribute its products. Collectively, the organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are all part of the:
A) marketing mix.
B) franchise system.
C) channel of distribution.
D) marketing network.

Accepted Answer

The organizations that participate in getting finished goods from Lite Bite to the ultimate consumers of its products are part of the channel of distribution. The marketing mix refers to the four Ps of marketing (product, price, promotion, and place), the franchise system is a specific business model involving a contractual agreement between the franchisor and franchisee, and marketing network is a vague term that does not specifically refer to the distribution of goods.

Question 12

Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.

Accepted Answer

The answer of Retail distribution strategies can take three different...

Question 13

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

Accepted Answer

The answer of What is utility? What are the major...

Question 14

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.

Accepted Answer

The answer of What is logistics? Describe the types of...

Question 15

Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would be:
A) railroads.
B) trucks.
C) air.
D) ships.

Accepted Answer

Since the flowers are perishable and must reach their destination quickly, the best mode of transportation would be air transportation. This is because air transportation is the fastest mode of transportation compared to others like railroads or ships. Therefore, Marcia should use air transportation to ensure that the flowers reach their destination quickly and in good condition.

Quiz 15: Distributing Products

Identify and describe the four basic types of distribution systems that are used to link firms in a formal relationship.

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar?

Jen Carter is trying to find ways to improve her firm's movement of materials and goods from its warehouse to the factory floor. Jen is looking into ways of making her firm's __________ more efficient.

What is a wholesaler? Describe the difference between merchant wholesalers and agents and brokers. Identify three types of limited-function wholesalers.

Retail distribution strategies can take three different forms. Identify the three forms and give examples of products that would be marketed using each strategy.

What is utility? What are the major types of utility? Give an example of how marketing intermediaries can provide each type of utility.

What is logistics? Describe the types of issues you might deal with if you specialized in logistics.