c.
merchant middlemen.
d.
supply chain managers.
33. Both the physical movement of products and the establishment of intermediary relationships to guide
and support the movement of the products are included in
a.
channels.
b.
distribution.
c.
intermediaries.
d.
logistics.
34. The activities of physically moving a product is
a.
channel management.
b.
distribution.
c.
logistics.
d.
supply chain management.
35. Intermediaries exist because
a.
they provide more efficient means of distribution than the product producer.
b.
they are able to reach geographic areas with much less expense.
c.
they have lower risk levels since they don’t have ownership of the goods.
d.
they specialize in products for specific customer needs.
36. Franklin sells his product in a bricks-and-mortar store and online. Franklin is using:
a.
channel integration.
b.
dual distribution.
c.
intermediary replication.
d.
multiple distribution.
37. Cooking for Collin, a small manufacturer of holiday cakes, sells its product through independent
retailers and mail-order marketing. Cooking for Collin is relying on
a.
a direct channel of distribution.
b.
an indirect channel of distribution.
c.
a dual distribution channel.
d.
a multiple-outlet distribution channel.
38. Since Love Languages has decided to sell its tutoring service on CD’s through an online site as well as
the traditional format of personal tutors, they are relying on
a.
a direct channel of distribution.
b.
an indirect channel of distribution.
c.
a dual distribution channel.
d.
a multiple-outlet distribution channel.
39. The three considerations in building a channel of distribution are
a.
cost, coverage, and control.
b.
cost, coverage, and compatibility.
c.
coverage, control, and compatibility.
d.
cost, control, and compatibility.
40. Small businesses should view distribution costs as
a.
prohibitive.
b.
sunk costs.
c.
an investment.
d.
Two of the above are true.
41. Equine Express, a small firm that transports horses both domestically and internationally, flies the
horses it purchases on one of two company-owned planes. Equine Express operates as a
a.
common carrier.
b.
public carrier.
c.
private carrier.
d.
contract carrier.
42. When Gavin sells his product to a ____, the storage function is transferred to the intermediary.
a.
agents
b.
brokers
c.
common carriers
d.
wholesalers
MATCHING
Match the term with its definition.
a.
Brand
g.
Indirect channel
b.
Brand image
h.
Patent
c.
Brand name
i.
Service mark
d.
Brandmark
j.
Trade dress
e.
Design patent
k.
Trademark
f.
Direct channel
l.
Utility patent
1. The overall perception of a brand
2. A distribution system without intermediaries
3. A legal term indicating that a company has the exclusive right to use a brand to identify a service
4. Registered protection for the appearance of a product and its inseparable parts
5. A legal term indicating that a firm has exclusive rights to use a brand to promote a product
6. A verbal and/or symbolic means of identifying a product
7. Registered protection for a new or improved process, machine, or product
8. A brand that cannot be spoken
9. Elements of a firm’s distinctive image not protected by a trademark, patent, or copyright
10. A distribution system with one or more intermediaries
11. A brand that can be spoken
Match the term with its definition.
a.
Agents/brokers
g.
Patent
b.
Common carriers
h.
Physical distribution (logistics)
c.
Contract carriers
i.
Plant patent
d.
Distribution
j.
Private carriers
e.
Dual distribution
k.
Supply chain management
f.
Merchant middlemen
l.
Third-party logistics firm
12. The activities of distribution involved in the physical relocation of products
13. Transportation intermediaries that contract with individual shippers
14. Lines of transport owned by shippers
15. A distribution system that involves more than one channel
16. A company that provides transportation and distribution services to firms that prefer to focus their
efforts on their primary operations
17. Intermediaries that do not take ownership of the goods they distribute
18. A system of management that integrates and coordinates the ways in which a firm finds the raw
materials to make a product, creates the product, delivers it to customers, and receives payment for it
19. The physical movement of products and the establishment of intermediary relationships to support
such movement
20. Registered protection for any distinct, new variety of living plant
21. Transportation intermediaries available for hire to the general public
22. Intermediaries that take ownership of the goods they distribute
Match the term with its definition.
a.
Channel of distribution
g.
Product line
b.
Copyright
h.
Product mix
c.
Patent
i.
Product mix consistency
d.
Product
j.
Product strategy
e.
Product item
k.
Sustainable competitive advantage
f.
Product life cycle
l.
Warranty
23. The lowest common denominator in the product mix—the individual item
24. The similarity of product lines in a product mix
25. The system of relationships established to guide the movement of a product
26. A value-creating position that is likely to endure over time
27. The collection of a firm’s total product lines
28. A total bundle of satisfaction offered to consumers in an exchange transaction
29. The sum of related individual product items
30. The way the product component of the marketing mix is used to achieve a firm’s objectives
31. The exclusive right of a creator to reproduce, publish, perform, display, or sell his or her own works
32. A promise that a product will perform at a certain level or meet certain standards
33. A detailed picture of what happens to a specific product’s sales and profits over time
ESSAY
1. How can a successfully growing firm fall into a growth trap?
2. Will, Max and Isaac are brothers and owners of Wood Toys of Yesterday, a company specializing in
handmade wood toys typical of the late 1800’s. The business had been a part-time enterprise when a
national magazine did an October cover story on the company and sales rose by 200% over their
normal holiday increase. Make suggestions to them for the company to survive this rapid increase in
growth especially considering the nature of their business and the timing of the increase.
3. Patricia has developed a new product that she would like to patent and produce. What can she do to
reduce the risk of failure?
4. Ollie has developed a new product for radio that allows the listener to rewind and listen to songs or
dialogue that was missed. The listener can then resume play in live mode, similar to a DVR product
used on home TVs. Ollie knows his competitive advantage will dwindle over time as new technology
emerges. What can he do to secure the future of his product and himself as an innovator?
5. Holley and Ellison are sisters whose parents started a stable 15 years ago boarding pleasure horses.
The parents want the sisters to take over the operation as they would like to retire and the business is
starting to suffer. What could the sisters do to move the company out of the decline stage of the
product life cycle?
6. Erin has developed a safety kit which includes items needed in case of severe weather with extended
power outages. When she developed and researched the idea, she found other kits on the market but
her business analysis revealed a less expensive way of producing the kits. How should she proceed?
7. Describe the differences between a brand, a logo, a trademark and a service mark. In what order
would they be developed?
8. Discuss the purposes of packaging, labeling and warranties in relation to a company’s brand.
9. After listing the six categories of major product strategies, discuss the implications for a small
business.
10. Discuss the characteristic differences between marketing products versus services.
11. Marie is a songwriter who has a full catalogue of material she has been compiling as a hobby since
1985. Recently she was approached about someone recording her songs. To protect her rights to her
songs, what does Marie need to do to secure her rights?
12. How can a small business protect its marketing assets?
13. Donnie owns a small tree farm known in the region for its maples. He has been approached about
expanding. What supply chain issues would he face?
14. How can intermediaries impact a company’s supply chain?
15. Discuss three considerations in constructing a channel of distribution.
16. Sandra, after attending culinary school, has returned home to start a small French restaurant using
sustainable, local items as well as foods and wines from France. What type of distribution would she
have and who would belong at what level?