1. What are the commonly used distribution channels for consumer products?
2. Compare and contrast intensive, selective, and exclusive distribution. Give an example of a product that normally
would be distributed in the way for each type of market coverage.
3. What is supply chain management, and what are its benefits?
4. How do full-service wholesalers and limited service wholesalers differ? How do general merchandise wholesalers,
limited-line wholesalers, and speciality-line wholesalers differ in the products they carry?
5. How are department stores defined? Mention several examples of department stores.
6. What is the goal of integrated marketing communications?
7. What is the role of promotion in the marketing mix?
8. What are the four primary elements in an organization’s promotion mix? Briefly describe each of the elements.
9. How does immediate-response advertising differ from reminder advertising?
10. Compare and contrast institutional advertising and primary–demand advertising. Which type is the BP’s “Still
Working, Still Committed” campaign? Defend your answer.
11. Why would a marketer identify and analyze the target audience before defining the advertising objectives when
developing an advertising campaign?
12. How does an order getter differ from an order taker? Which would you expect a Schwan’s home food truck
delivery salesperson to be? Support your answer.
13. Why is the ability of the salesperson to handle objections so important in the selling process?
14. How does a frequent-user incentive differ from a premium?
15. What types of public-relations tools can organizations use?
SME Ads Inc. (SME)
Steven Monahan owns SME Ads Inc., an advertising agency. At present, the company focuses on advertising only.
However, Steven plans to expand the company’s focus to include all the major elements of an organization’s
promotional mix. Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in
a more coordinated fashion. Currently, the firm organizes its work according to the media being used. Steven
believes this is the most effective way to subdivide advertising. Since television is the most widely used advertising
medium, the company spends most of its time on television advertising. SME knows what it takes to get the job
done, and it is committed to success.
16. Refer to SME Ads Inc. As Steven plans to expand the company’s focus to other major elements of the promotion
mix, which of the following should he focus on if he wants to help his clients create and maintain favorable
relationships between them and their various internal and external groups?
a. Word-of-mouth
b. Sales promotion
c. Rebates
d. Public relations
e. Personal selling
17. Refer to SME Ads Inc. Which of the following terms refers to the type of advertising SME would use to increase
the demand for all brands of a product within a specific industry?
a. Brand advertising
b. Selective–demand advertising
c. Corporate advertising
d. Primary-demand advertising
e. Institutional advertising
18. Refer to SME Ads Inc. SME recently created advertising for Maruti Automobiles for its new line of cars called
Maruti Marvels. Such brand-oriented advertising is called .
a. primary-demand advertising
b. selective-demand advertising
c. institutional advertising
d. individualized advertising
e. private advertising
19. Refer to SME Ads Inc. In developing the advertising campaign for a client, in which of the following steps should
SME include the important selling points or features of the client’s products?
a. Identifying and analyzing the industry.
b. Defining the advertising objectives.
c. Creating the advertising platform.
d. Determining the advertising appropriation.
e. Developing the media plan.
R&P Inc.
R&P Inc. is an emerging company that wants to focus on personal selling, sales promotion, and public relations
activities. R&P‘s management understands that personal selling is about the personal communication aimed at
customers, but they feel that determining more specifics about the products they sell will allow them to better
achieve their goal. Another important route they would like to take is to learn more about the various types of sales
promotion. Finally, management would like to focus more on publicity-based PR. By concentrating on these areas,
the company believes that it will be able to successfully create a promotional campaign.
20. Refer to R&P Inc. R&P management knows that is the most effective and least expensive means of
communicating product information to a large number of individuals and organizations.
a. advertising
b. personal selling
c. sales promotion
d. public relations
e. corporate promotion
21. Refer to R&P Inc. During which step of the personal selling process should an R&P salesperson ask the prospect
to buy the product?
a. Closing the sale
b. Prospecting
c. Answering objections
d. Approaching the prospect
e. Making the advertisement
22. Refer to R&P Inc. R&P management could use sales promotions for any of the following objectives except:
a. to attract new customers.
b. to boost sales to current customers.
c. to reinforce advertising.
d. to steady increasing sales patterns.
e. to improve shelf space and displays.
23. Refer to R&P Inc. If R&P management chose to return a portion of a product’s purchase price as a sales
promotion method, it would be referred to as which of the following?
a. Sample
b. Rebate
c. Premium
d. Coupon
e. Direct mail
24. Refer to R&P Inc. If the managers at R&P were interested in implementing the most widely used type of publicity,
they should utilize which of the following?
a. News release
b. Captioned photograph
c. Point–of-purchase display
d. Feature article
e. Press conference
25. A sequence of organizations that directs a product from the producer to the ultimate user is called a(n) .
a. intermediary network
b. catalog discount showroom
c. transporter
d. distribution channel
e. distributorship
26. Marketing organizations that link producer and consumer within a marketing channel are called .
a. distributorships
b. warehousing groups
c. marketing intermediaries
d. shopping centers
e. supermarkets
27. A general term for a middleman that actually buys and then resells goods is a .
a. functional middleman
b. broker
c. retailer
d. sales agent
e. merchant middleman
28. R.A. Grant Co. assists art supplies manufacturers in transferring their products to retail outlets by matching up
producers and retailers without actually taking title to the goods. R.A. Grant Co. would be classified as a .
a. functional middleman
b. merchant middleman
c. retailer
d. producer
e. channel of distribution
29. Which of the following channels in known as the direct channel?
a. Producer to consumer
b. Producer to middleman to business user
c. Producer to retailer to consumer
d. Producer to wholesaler to retailer to consumer
e. Producer to middleman
30. The Spirit connection buys team logo gear from manufacturers and then sells the gear directly to consumers. The
Spirit connection is a .
a. wholesaler
b. functional middleman
c. producer
d. retailer
e. business user
31. The distribution channel most likely to be used for a new car is producer to
a. wholesaler to retailer to consumer
b. consumer
c. agent to wholesaler to retailer to consumer
d. business user
e. retailer to consumer
32. Mullin, Inc. purchases supplies such as paper and seat covers directly from manufacturers and then sells them to
other firms. Mullin, Inc. is a(n) .
a. retailer
b. wholesaler
c. functional middleman
d. agent
e. producer
33. All of following are basic factors in the selection of a channel of distribution except the
a. firm’s production capability and marketing resources.
b. target market.
c. type of transportation to be used.
d. buying patterns of potential customers.
e. product itself.
34. Zero Manufacturing produces candy bars. The company would probably choose which of the following to reach its
target market?
a. Variable marketing system
b. Exclusive distribution
c. Selective distribution
d. Intensive distribution
e. Selective agents
35. Convenience goods such as candy, gum, and cigarettes are normally distributed using distribution.
a. exclusive
b. intensive
c. patterned
d. intentional
e. selective
36. The use of only a portion or percentage of the available outlets in each geographic area for market exposure is
called distribution.
a. exclusive
b. intensive
c. selective
d. patterned
e. intensive
37. Nine west manufactures leather goods such as shoes and handbags. Which form of distribution is this company
most likely to use ?
a. Exclusive
b. Intensive
c. Comprehensive
d. Agent-driven
e. Selective
38. Manufacturers of furniture, clothing, and consumer electronics generally use distribution.
a. patterned
b. exclusive
c. intentional
d. selective
e. intensive
39. Clothing manufacturers typically prefer distribution.
a. selective
b. exclusive
c. intensive
d. patterned
e. direct
40. Whirlpool Appliances would most likely use distribution to sell its products.
a. intensive
b. selective
c. patterned
d. exclusive
e. comprehensive
41. Rolls-Royce uses distribution on sell its automobiles.
a. selective
b. patterned
c. exclusive
d. intensive
e. prestige
42. Products such as very expensive wristwatches are distributed using distribution.
a. exclusive
b. patterned
c. selective
d. intentional
e. intensive
43. A large restaurant with locations throughout the United States has a long-term partnership with Tyson for its poultry
and a produce distributor for its fruits and vegetables. These relationships reduce inefficiencies and costs and result
in higher customer satisfaction. This restaurant is successfully using .
a. exclusive distribution
b. vertical channel integration
c. supply chain management
d. intensive distribution
e. wholesale intermediaries
44. Walmart is working with its suppliers using tools such as electronic billing, purchase order verification, bar-code
technology, and the like to integrate data to improve overall performance. This is an example of .
a. supply chain management
b. vertical marketing systems
c. horizontal marketing systems
d. contractual vertical marketing systems
e. intensive distribution