Marketing Module Quiz Questions! Trivia

The correct answer suggests that the Harvard University transportation economist did not believe that container-based transportation would lead to a reduction in U.S. manufacturing jobs. This implies that the economist did not foresee any negative impact on jobs due to the introduction of containers in transportation.

Safety stock is held against running out of supply because of order-delivery process unreliability. This means that when there is uncertainty or unreliability in the order-delivery process, safety stock is used as a buffer to ensure that there is enough inventory available to meet demand. By holding safety stock, a company can mitigate the risk of stockouts and ensure that they have enough supply to fulfill customer orders, even if there are delays or disruptions in the order-delivery process. This helps to maintain customer satisfaction and avoid lost sales due to supply chain uncertainties.

Intermediaries add time and place utility to a manufacturer's product. Time utility refers to the availability of the product at the right time when the customer needs it. Intermediaries ensure that the product is stocked and ready for purchase when the customer wants it. Place utility refers to the availability of the product at the right place where the customer can easily access it. Intermediaries distribute the product to various locations, making it convenient for customers to find and purchase the product. Therefore, intermediaries add both time and place utility to a manufacturer's product.

Reach is a term used to measure the percentage of target customers that a company's distribution strategy is able to reach. It represents the extent to which a company's products or services are able to penetrate the market and reach the intended audience. In other words, it indicates the effectiveness of the company's distribution efforts in reaching the target customers.

Channel evolutionary rigidity occurs when channels very slowly adopt new technology and processes that increase efficiency. This means that channels are resistant to change and take a long time to implement new technologies and processes that could improve their efficiency. This can hinder their ability to adapt to changing market conditions and stay competitive.

A pack of Charmin toilet paper is suited for mass distribution because it is a consumable product that is used by a large number of people on a daily basis. It is a necessity item that is commonly purchased in bulk quantities, making it ideal for mass distribution to meet the high demand. Additionally, toilet paper is a relatively low-cost product, making it more affordable for mass distribution compared to luxury items like a Coach purse or a Chanel watch. A marketing textbook, on the other hand, is a specialized item that is not typically distributed on a mass scale.

If the manufacturer's target customers start shopping in different channels, the manufacturer has to add those channels in order to reach and cater to their customers effectively. This means expanding their distribution and marketing strategies to include the new channels where their customers are shopping.

Levi Strauss successfully added new distribution channels, as discussed in the distribution module. This implies that the company implemented strategies to expand its reach and make its products more accessible to consumers. The addition of new distribution channels can help increase sales and market share for a company.

The correct answer is that Walmart continued to promote every-day low prices, ignoring the fact that rivals were flourishing by marketing selection, quality, organic brands, and prepared foods. This means that despite the success of competitors who focused on marketing selection, quality, and organic brands, Walmart stuck to its strategy of offering low prices every day. This suggests that Walmart did not adapt its marketing approach to compete with its rivals' successful strategies.

Travel agencies were negatively affected by Internet marketing because the rise of online travel websites like Orbitz.com allowed consumers to book flights, hotels, and other travel services directly, bypassing the need for a travel agency. This resulted in a decline in the demand for travel agency services and a decrease in their market share.

In markets suffering from evolutionary rigidity, the potential rewards from innovating are significant. This means that in such markets, where there is resistance to change and a lack of innovation, those who are able to introduce new and creative ideas have a higher chance of achieving significant rewards. This could be in the form of increased market share, higher profits, or gaining a competitive advantage over rivals. By taking the risk to innovate, businesses can break free from the rigidity and reap substantial benefits.

The phrase "Order-taking, picking, and packing process quality and costs" appears in the box on the left side.

If the reliability of the delivery system is reduced by five days, it means that the average time it takes for the buyer to receive the boxes is increased by five days. Since the buyer uses 100 boxes a day, this means that the buyer will now have to carry an additional 500 boxes in inventory (100 boxes/day * 5 days).

The annual carrying cost of each box is $12, so the buyer will save $12 for each of the additional 500 boxes that they no longer have to carry in inventory. Therefore, the buyer will save a total of $6,000 annually (500 boxes * $12/box).

The auto market has been greatly impacted by internet marketing. Online platforms have made it easier for consumers to research and compare different car models, prices, and dealerships. Additionally, internet marketing has allowed car manufacturers and dealerships to reach a wider audience and target specific demographics through targeted advertising and social media campaigns. This has revolutionized the way cars are bought and sold, making the auto market one of the retailing areas most affected by internet marketing.

The major concern for a supplier of a mass distribution product is how to get into the mass distribution channels. This means that the supplier is primarily focused on finding ways to reach a large number of customers efficiently and effectively. This could involve strategies such as securing partnerships with retailers, establishing a strong distribution network, or developing marketing campaigns to increase brand visibility. By prioritizing access to mass distribution channels, the supplier aims to maximize their product's reach and ultimately drive sales.

The phrase "Transportation process quality and cost" appears in the box on the right side.

When you make a physical distribution system more reliable and regular in its processes, it reduces the need for inventory. This is because a more reliable and regular system ensures that products are delivered on time and in the right quantities, minimizing the risk of stockouts or delays. With a reduced risk of stockouts, there is less need to keep high levels of inventory as a buffer. Therefore, improving the reliability and regularity of the distribution system can help optimize inventory levels and reduce the need for excess inventory.

Mass distribution refers to the strategy of making a product available to a wide range of customers through multiple channels. In this context, reseller, image, services, and marketing may not be as important because the focus is on reaching a large number of customers rather than building relationships with individual resellers or emphasizing brand image. This strategy is often used for products with mass appeal and low price points, where volume sales are more important than individual customer experiences.

A manufacturer prefers intra-brand competition because it occurs between different products or models within the same brand. This type of competition allows the manufacturer to differentiate their products and target different market segments. It also helps to build brand loyalty among customers and increases the manufacturer's market share. Inter-brand competition, on the other hand, occurs between different brands and may lead to price wars and reduced profit margins for the manufacturer. Therefore, intra-brand competition is generally more beneficial for a manufacturer.

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The correct answer is that manufacturers get upset when they run advertisements that draw prospective customers into the retail store but lose sales because the in-store marketing push is missing. This is a common source of conflict between manufacturers and partners because manufacturers invest in advertising to attract customers, but if the in-store marketing is not executed effectively, it can result in missed sales opportunities. This highlights the importance of effective coordination and communication between manufacturers and partners in joint marketing programs.

According to U.S. Commerce Department Statistics, the biggest retail line of business in the U.S. is automotive dealer retailing. This means that the sale of automobiles and related products and services generates the highest revenue compared to other retail sectors such as food and beverage retailing, general merchandise retailing, eating and drinking retailing, and gas station retailing.

The correct answer is "Both A and B." In mass distribution, the focus is on reducing the cost of distribution as well as keeping the shelves stocked. By reducing distribution costs, companies can increase their profit margins and offer competitive prices to customers. Additionally, keeping the shelves stocked ensures that customers have access to the products they want, leading to increased sales and customer satisfaction. Therefore, both reducing the cost of distribution and keeping the shelves stocked are important aspects of mass distribution.

Franchising allows innovators to earn higher innovation profits by expanding their business through a franchise system. This means that the innovator can sell the rights to use their brand and business model to franchisees, who then operate their own franchise locations. The franchisees pay fees and royalties to the innovator in exchange for the rights and support provided by the franchisor. This allows the innovator to leverage the success of their brand and business model, while the franchisees benefit from the established reputation and support system of the franchisor.

When the reliability of the delivery system is reduced by 10 days, it means that the average time it takes to deliver each box increases by 10 days. Since the buyer uses 200 boxes a day, this increase in delivery time affects a total of 200 * 10 = 2000 boxes.

The annual carrying cost of each box is $150, so the buyer saves $150 * 2000 = $300,000 annually by reducing the reliability of the delivery system. Therefore, the correct answer is $300,000.

Retailers and manufacturers need to seek the balance between quality and price as well as between price and product variety. This means that they have to find a middle ground where they can offer products that are of good quality at a reasonable price, while also providing a diverse range of products to cater to different customer preferences. By achieving this balance, they can attract a wider customer base and increase their sales and profitability.

The correct answer is "Both B and C" because in the distribution module, retailing is discussed in terms of supply chain cost control and positioning. These two factors are important in retailing as they help in managing and reducing costs in the supply chain and positioning the products or services in the market to attract the target customers. Price and promotion are also important aspects of retailing, but they are not specifically mentioned in the given question.

Both Venice and Amsterdam were innovative distribution hubs because their canals allowed goods to be loaded and unloaded directly into a merchant's warehouse. Venice is known for its extensive canal network, which connected the city to major trade routes and allowed for efficient transportation of goods. Similarly, Amsterdam's canal system played a crucial role in its rise as a major trading center, enabling goods to be easily transported to and from warehouses located along the canals. London, on the other hand, did not have a canal system that allowed for direct loading and unloading of goods into warehouses.

Convenience products are those products that are purchased frequently and with minimal effort by consumers. The statement "Shoppers will purchase the next preferred alternative when the product or service is not available" describes convenience products because consumers are willing to switch to another brand or product if their preferred choice is not available. Similarly, the statement "The best distribution for a convenience product is to be everywhere" also describes convenience products because they need to be easily accessible and available in multiple locations for consumers to purchase them conveniently. Therefore, the correct answer is Both B and C.

Manufacturers may launch their own outlet stores because retail channels take advantage of generous buy-back programs and return a lot of stuff. This means that manufacturers may have excess inventory or returned products that they can sell directly to consumers through their outlet stores. By doing so, they can recoup some of their losses and also offer discounted prices to consumers. This strategy allows manufacturers to control the sales of their products and potentially increase their profit margins.

The success of retailing depends on several factors. Store location is important because it determines the accessibility and visibility of the store to potential customers. The assortment or selection of products offered for sale is crucial as it needs to cater to the needs and preferences of the target market. The quality of merchandise presentation is significant as it influences the perception of the products and the overall shopping experience. Lastly, the attractiveness of the store interior plays a role in attracting and retaining customers. Therefore, all of these factors contribute to the success of retailing.

The basic channel choice does not depend on conviviality. Conviviality refers to the friendly and pleasant atmosphere of a channel, but it is not a criteria that affects the selection of a basic channel. Capability, cost, and control are all important factors that influence the choice of a channel, as they determine the channel's effectiveness, affordability, and level of control for the sender.

Products that are frequently purchased are best suited for mass distribution because they have a high demand and a large customer base. These products are often consumed or used up quickly, leading to repeat purchases and a need for continuous supply. Mass distribution allows for these products to be easily accessible to a wide range of consumers, ensuring that they are readily available and can be purchased conveniently. Additionally, mass distribution of frequently purchased products can help to lower costs and increase efficiency in the supply chain.

Both A and B are true statements in trading relationships and processes. A unique trading relationship advantage can indeed come from the manufacturer and channel partner working well together to reduce the costs of doing business. Additionally, if the cost reduction efforts of both parties are synchronized and better than any other trading relationship, it will result in a unique competitive cost advantage for the trading relationship.

A company may choose to distribute through new channels for several reasons. One reason could be the introduction of new products. By utilizing new channels, the company can effectively reach a wider customer base and increase sales. Additionally, a different retail channel may reach a different segment of shoppers, allowing the company to tap into new markets and expand its customer reach. Furthermore, if the manufacturer does not supply the new retailer, other competitors will, leading to potential loss of market share. Therefore, considering all these factors, it is logical for a company to distribute through new channels.

The basic channel activity discussed in distribution is encompassed by all of the given options. Reaching target customers involves identifying their location and shopping preferences. Informing and serving the customer involves providing them with relevant information and meeting their needs. Moving the product refers to the physical transportation and logistics involved in delivering the product to the customer. Financing the venture involves the financial aspects of distribution, such as managing costs and securing funds. Therefore, all of these activities are essential components of distribution.

The correct answer is "All of the above". This is because a retail store's assortment of customers can vary in terms of individual differences such as age or income, their product usage and needs, their perceptions of competitive offerings, and their sensitivity to different promotional strategies. In other words, customers can differ in various aspects, making them unique in their preferences and behaviors.

When a manufacturer creates its own retail outlets, it allows them to directly sell their products to consumers, cutting out the middleman and potentially increasing their profit margins. By retailing their products themselves, the manufacturer can eliminate the need to wholesale their products to other retailers, allowing them to keep a larger portion of the profits. This strategy also gives the manufacturer more control over the pricing, promotion, and presentation of their products, which can help strengthen the appeal of the brand and attract more customers. Additionally, having their own retail outlets can serve as test labs for new product lines and merchandising innovations, allowing the manufacturer to gather valuable feedback and insights before launching them to a wider market. Therefore, all of the above options are valid rationales for a manufacturer to create its own retail outlets.

A manufacturer seeks a channel partner whose customers fit their target market segment in order to ensure that their products will be appealing and relevant to the partner's customer base. Additionally, they look for a partner whose service and current products complement their own, as this can lead to a more cohesive and comprehensive offering for customers. By choosing a partner that meets both of these criteria, the manufacturer can increase the likelihood of a successful and mutually beneficial partnership.

Relationship synergy occurs when there is a high market fit and a high fit between the marketing strategies and the implementation skills of two trading partners. This means that both partners have a strong alignment in terms of their target market and their ability to execute marketing strategies effectively. This high level of synergy enhances collaboration and cooperation between the partners, leading to better outcomes and mutual success.

The competitive advantages for IKEA are both B and C. Flat packing furniture saves manufacturing and distribution costs for IKEA, allowing them to offer lower prices to customers. Additionally, IKEA provides customer convenience and lower final delivery costs compared to other furniture competitors, which further enhances their competitive position in the market.

Computerization in order-taking processes offers several advantages. One advantage is that it often allows immediate notification of item availability. This means that customers can be informed right away if the item they want to order is in stock or not. Another advantage is that it can produce courtesy confirmation emails that are automatically sent to buyers. This helps to provide a sense of reassurance to customers that their order has been received and is being processed. Therefore, the correct answer is "Both B and C."

As markets mature, the need for pioneer personal selling efforts decrease because there is already an established customer base and brand recognition. Additionally, as markets mature, the need for direct selling and billing efforts increase because there is a higher demand for personalized sales approaches and efficient billing processes. Therefore, the correct answer is both B and C.

Relationship synergy occurs when the effectiveness, capability, and success of the partnership is more than the sum of the seller's and buyer's separate capabilities. This means that when two trading partners come together, they are able to achieve better results and outcomes than what they could have achieved individually. It involves leveraging each other's strengths and resources to create a mutually beneficial and successful partnership.

The development of a new logistics relationship between businesses and trading partners requires a combination of factors. Firstly, there is a need for the development of new attitudes that change old habits. This implies that both parties must be willing to adopt new approaches and strategies in order to foster a successful relationship. Secondly, there must be enough trust between the businesses and trading partners to work together effectively and develop competitive added value for both parties. This trust is crucial for building a strong and mutually beneficial relationship. Additionally, there should be a willingness to not exploit the new relationship at the expense of long-term cooperation. This means that both parties should prioritize the sustainability and longevity of the relationship over short-term gains. Lastly, patience is necessary as the payoff of the new relationship may take time and there may be initial glitches that need to be resolved. Overall, all of these factors are essential for the successful development of a new logistics relationship.

The key to operating multiple channels is to establish whether the current and new channels share the same customers through customer research undertaken together with channel members. Additionally, each trading relationship's uniqueness has to be recognized. Therefore, the correct answer is Both A and C.

Channel segmentation is important in distribution reach strategy because different customers may be reached through different channels. The most common function of a marketing channel member is to provide reach and to resell the product into a market where the original seller can't reach efficiently or effectively. Retailers can give the manufacturer both location and image competitive positioning, meaning they can help position the product in a specific market and create a favorable brand image. Therefore, all statements A, B, and C are true about reaching target customers.