Prelim Exam: Marketing Management Exam Questions!

Airplanes are considered a fast but expensive form of shipment because they can transport goods and people quickly over long distances. Air freight allows for faster delivery times compared to other modes of transportation such as water vessels or railroads. However, the cost of air transportation is typically higher due to factors such as fuel expenses, maintenance costs, and the need for specialized infrastructure and equipment. Therefore, while airplanes offer speed and efficiency, they may not be the most cost-effective option for all shipments.

Warehousing is a marketing function that involves the storage or holding of goods between the time of production and final use. This means that warehousing plays a crucial role in the supply chain process by providing a place to store and manage inventory until it is needed by customers. By effectively managing the storage and distribution of goods, warehousing helps to ensure that products are available when and where they are needed, thus facilitating the smooth flow of goods from production to consumption.

Transportation refers to the physical movement of goods and people from one location to another. It involves the use of various modes of transport such as road, rail, air, and sea to transfer goods and individuals. Transportation is an essential component of logistics and supply chain management as it ensures that products reach their intended destinations in a timely and efficient manner. It plays a crucial role in facilitating trade, economic growth, and social connectivity by enabling the movement of goods and people across different regions and countries.

The loading characteristics refer to the specific requirements and conditions for loading and unloading goods during delivery. These characteristics can include factors such as the size, weight, fragility, and special handling needs of the items being transported. Depending on the loading characteristics, additional equipment, manpower, or specialized services may be required, which can increase the cost of the delivery. Therefore, the statement that the type of loading characteristics determines the cost of the delivery is true.

Distribution is the correct answer because it refers to the process of transferring goods from producers to final consumers and users. This includes activities such as transportation, warehousing, and retailing. Distribution ensures that products are delivered to the right place, at the right time, and in the right quantity, making it an essential aspect of the supply chain.

Automated warehouses are referred to as warehouses with advance handling systems that are controlled by a computer. This means that the operations and processes within the warehouse, such as inventory management, order picking, and transportation, are automated and controlled by computer systems. This automation allows for increased efficiency, accuracy, and productivity in warehouse operations.

The cost of delivery increases as the distance between the sender and the recipient of the goods increases. This is because transportation costs, such as fuel and labor, tend to be higher for longer distances. Additionally, longer distances may require multiple modes of transportation or additional handling, which can further increase the delivery cost. Therefore, the farther the location of the recipient, the higher the cost of the delivery.

The statement suggests that a significant portion of personal income is used for retail purchases. This is likely because individuals need to buy goods and services for their daily needs and wants. Retail stores offer a wide range of products, making them a common destination for consumers to spend their income. Additionally, retail therapy and the desire for new or trendy items may also contribute to the high spending at retail establishments. Therefore, it is reasonable to conclude that the statement is true.

The main goal of distribution is to ensure that the right goods are delivered to the right place at the right time and at the lowest possible cost. This involves efficient management of logistics and transportation to minimize expenses while meeting customer demands. Maximizing the use of human resources and minimizing transportation costs are important factors in achieving this goal, but the ultimate objective is to deliver the goods efficiently and cost-effectively.

Physical distribution refers to the management of the physical flow of products and the establishment of an efficient flow system. This involves activities such as transportation, warehousing, inventory management, and order processing. By effectively managing these processes, companies can ensure that products are delivered to customers in a timely and cost-effective manner. Physical distribution plays a crucial role in supply chain management and is essential for businesses to meet customer demands and maintain a competitive advantage in the market.

Wholesaling includes the sale and all activities directly related to the sale of products or services to those who are buying for business use. This involves selling goods in large quantities to retailers, other businesses, or institutional buyers, rather than directly to individual consumers. Wholesalers typically purchase goods from manufacturers or other suppliers in bulk and then sell them to retailers or other businesses at a higher price, allowing for a profit margin. They play a crucial role in the supply chain by providing a link between producers and retailers, helping to efficiently distribute products to the market.

Water vessels, such as ships or boats, have the advantage of low cost in transportation. They can carry large quantities of goods at a relatively low cost compared to other modes of transportation. However, their greatest disadvantage is that they are slow in delivering the goods. Due to their dependence on waterways and potential delays in ports or canals, it might take days or even weeks to reach the destination.

Trucks are the correct answer because they have the ability to move shipments economically, at varying sizes, short distances, and can deliver shipments to any point of the country served by roads and highways. Unlike railroads or water vessels, trucks offer flexibility and accessibility to deliver goods directly to their destination, making them a popular choice for transporting shipments within a country.

Intensive distribution refers to a strategy where a product is made available in almost all outlets. This means that the product is widely distributed and easily accessible to consumers. It involves placing the product in as many retail locations as possible, maximizing its market exposure. This strategy is commonly used for fast-moving consumer goods or products with high demand. By adopting intensive distribution, companies aim to reach a larger customer base and increase their market share.

Retailing is the correct answer because it refers to the process of selling goods or services directly to the end consumer. It involves activities such as displaying, promoting, and selling products in physical or online stores. Retailers act as the final link between producers or wholesalers and consumers, as they purchase products from wholesalers or distributors and make them available to the general public. Therefore, retailing plays a crucial role in connecting consumers with producers by providing a platform for the sale of goods and services.

Exclusive distribution refers to a market exposure strategy where a product is sold by only one type of middleman in a specific geographic area. This means that the product is exclusively available through a single distributor or retailer, limiting its availability to other middlemen or channels. This strategy is often used for high-end or luxury products, where maintaining control over distribution and ensuring a premium brand image is important. By restricting distribution to a single middleman, the company can have better control over pricing, promotion, and customer experience.

Selective distribution is the correct answer because it refers to a distribution strategy where a limited number of retailers are chosen to sell a product. This strategy is commonly used for shopping goods like ready to wear apparels, appliances, or furniture. By carefully selecting retailers, the company can ensure that their products are available in a sufficient number of outlets while maintaining some level of control over their distribution network. This approach is often preferred when the product requires special knowledge or customer service, and when the company wants to maintain a certain level of exclusivity or brand image.

Physical Distribution and Distributive Constitution are the two classifications of Distribution. Physical Distribution refers to the activities involved in the movement and storage of goods from the manufacturer to the consumer. It includes transportation, warehousing, inventory management, and order processing. Distributive Constitution, on the other hand, refers to the legal and regulatory framework that governs the distribution of goods and services. It includes laws related to contracts, competition, consumer protection, and intellectual property rights. Both classifications play a crucial role in ensuring the efficient and effective distribution of goods in the market.

Roadside stands are commonly found in highways from Metro Manila to the provinces. These stands are small businesses set up along the road where vendors sell various goods such as fruits, vegetables, snacks, and drinks. They provide convenience to travelers who can easily stop by and purchase items without having to go to a traditional market. Roadside stands are a common sight along highways, making them the correct answer in this context.

The statement is false because merchant middlemen do not assist in the transfer of title. They act as intermediaries between buyers and sellers, facilitating the exchange of goods or services. However, the transfer of title is typically handled by legal mechanisms such as contracts or deeds.

The factors determining transportation rates include distance, type of equipment required, services required, and loading characteristics. Distance plays a significant role as longer distances usually result in higher transportation costs. The type of equipment required also affects rates, as specialized equipment may be more expensive to transport. Additionally, the services required, such as expedited shipping or additional handling, can impact the rates. Lastly, the loading characteristics, such as the weight and size of the cargo, can influence the transportation costs. The type of company is not mentioned as a factor in determining transportation rates.

Huckstering refers to the act of selling goods or services in a persuasive or aggressive manner, often by peddlers who go door to door or operate in public markets and bus terminals. This term specifically implies a more informal and sometimes pushy approach to selling, as opposed to direct selling or direct orders which may involve a more structured and professional sales process.

Storage is necessary for various reasons. Firstly, some goods are produced seasonally, meaning they are only available during certain times of the year. Therefore, they need to be stored to ensure a continuous supply throughout the year. Additionally, some goods are consumed regularly, and storage is necessary to maintain a consistent availability for consumers. Furthermore, storage is needed for possible protection, as it helps safeguard goods from theft, damage, or spoilage. Moreover, storage is necessary for large quantities of goods that cannot be immediately used or sold. Lastly, certain products require special storage conditions, such as temperature control or specific handling, making storage essential for their preservation.

The major items to consider in computing warehousing cost are capital invested in products, taxes, and insurance. Capital invested in products refers to the amount of money tied up in inventory, which includes the cost of purchasing and storing products. Taxes are another significant factor as they can vary based on the location of the warehouse and the value of the goods stored. Insurance is crucial to protect against potential losses or damages to the inventory. Tips for government agencies are not directly related to warehousing costs, so they are not considered major items in this context.

Railroad transportation has the advantage of being able to handle bulky products at a low cost over a long distance. Railways are designed to accommodate large and heavy loads, making them ideal for transporting goods that are too big or heavy for other modes of transportation. Additionally, rail transport is known for its efficiency and cost-effectiveness, making it a preferred choice for long-distance shipping.

Insurance is an important item in computing warehousing cost because it adds cost to the products stored. This is because insurance premiums need to be paid to protect the products from potential risks and damages. Additionally, insurance adds security to the product by providing coverage in case of theft, fire, or other unforeseen events. It also adds safety to the product by ensuring that any losses or damages will be compensated, reducing the financial risk for the warehouse owner.

The examples provided, which include direct selling, telephone ordering, and mail to order, are all forms of non-store retailing. Direct selling refers to the selling of products directly to consumers in a non-retail environment, such as through door-to-door sales or home parties. Telephone ordering involves customers placing orders for products over the phone, without physically visiting a store. Mail to order involves customers ordering products through mail or catalogs, without visiting a physical store. These examples demonstrate ways in which retail transactions can occur without the need for a traditional brick-and-mortar store.

Marketers use middlemen for several reasons. Firstly, middlemen help increase sales volume by reaching a larger customer base and distributing products efficiently. Secondly, they provide good market coverage by establishing a strong presence in different geographic areas and target markets. Lastly, middlemen help keep costs down at a minimum by handling tasks such as warehousing, transportation, and inventory management, allowing the company to focus on core competencies.

SM is a large scale retailer because it offers a wide range of products and services to customers. It is also a general merchandise retailer as it sells various types of products, not specializing in one specific category. Additionally, SM is a full-service retailer, providing a comprehensive range of services to customers. Lastly, it can be classified as a supermarket retailer because it offers groceries and other household items.

Transportation is the process of physically moving goods and people from one place to another. It plays a crucial role in moving goods to places where consumers can purchase or use them. Without proper distribution, the transfer of goods to the intended destination cannot be completed. Additionally, transportation also helps in promoting a company by allowing it to reach different places and expand its market presence.