Direct Marketing and Distribution Strategies
Which of the following advertising functions is a hierarchy-of-effects model of advertising effect because consumer learning about the product leads to belief changes, which lead to changes in feelings (attitude) toward the product, which lead to buying the product?
b) LFB
Which advertising model assumes thoughtful decision-making?
a) LFB
Romantic fragrance ads are an example of which advertising model?
c) FBL
What type of advertising persuasion is the basis for the advertising message theme “Try me”?
b) BFL messages
What type of advertising persuasion is the basis for the advertising message theme “Have you got this problem? I have the solution”?
c) LFB messages
Which of the following activities comes first in the direct marketing process?
b) The database is built up through use of billing statements, warranty cards and sweepstakes information
Which of the following activities comes second in the direct marketing process?
a) Customer sends in warranty card, enters sweepstake or name is on list.
Which of the following activities comes third in the direct marketing process?
b) Record is added to database.
Which of the following activities comes fourth in the direct marketing process?
c) Customer is assigned to a product, channel, or profitability segment
Which of the following activities comes fifth in the direct marketing process?
b) Database is built up through the use of billing statements, warranty cards and sweepstake information
The growth potential for direct marketing is limited:
b) By the type of people who patronize direct marketers
Direct marketing has become popular mainly because of:
a) The availability of computer hardware and software to undertake data mining and list creation, thereby enhancing contact efficiency
Which of the following statement is NOT true about direct advertising?
a) Direct advertising is about one third of all advertising, as measured by expenditure
MODULE 10. DISTRIBUTION
In markets suffering from evolutionary rigidity the potential rewards from innovating are:
Answer: a) Significant
Channel evolutionary rigidity occurs when channels:
Answer: b) Very slowly adopt new technology and processes that increase efficiency.
As markets mature:
Answer: e) Both B and C.
Which of the following is the basic channel activity discussed in distribution:
Answer: a) % of target customers that company distribution reaches.
Which of the following cities were innovative distribution hubs because their canals allowed goods to be loaded and unloaded directly into a merchant’s warehouse:
Answer: d) Both A and B.
Which of the following criteria does the basic channel choice NOT depend on:
Answer: d) Conviviality
Intermediaries add what type of utility to a manufacturers’ product:
Answer: c) Time and place utility
Risk-taking and financing activities of channel intermediaries:
Answer: c) Have been greatly reduced over the last one hundred years.
Which of the following statements is true about reaching target customers?
Answer: e) A, B and C.
Which of the following products is suited for mass distribution:
Answer: c) A pack of Charmin toilet paper.
What kinds of products are best suited for mass distribution
Answer: a) Products that are frequently purchased.
Most of the focus in mass distribution is on:
Answer: d) Both A and B.
Which of the following statements best describes convenience products:
Answer: d) Both B and C.
What is the major concern for a supplier of a mass distribution product as discussed in the distribution module:
Answer: c) How to get into the mass distribution channels.
Reseller, image, services, and marketing are NOT as important in:
Answer: b) Mass Distribution
A retail store’s assortment of customers has varying degrees of uniqueness measured in terms of:
Answer: e) All of the Above
Which of the following statements is true about franchising
Answer: c) Franchising is a way for an innovator to earn higher innovation profits.
In trading relationship and processes, which of the following statements is true:
Answer: c) Both A and B
When choosing a channel partner, a manufacturer seeks:
Answer: d) Both A and B
Relationship synergy occurs when there is a ____ served market fit and a ____ fit between the marketing strategies and implementation skills of two trading partners.
Answer: d) high, high
Relationship synergy occurs when the effectiveness, capability, and success of the partnership is:
Answer: c) More than the sum of the seller’s and buyer’s separate capabilities.
Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the right-side box:
Answer: a) Transportation process quality and cost.
Four of the following phrases appear in the physical distribution QFD figure. Please indicate which of the phrases appears in the left-side box:
Answer: b) Order-taking, picking and packing process quality and costs.
Safety stock is held:
Answer: b) Against running out of supply because of order-delivery process unreliability.
If the reliability of a delivery system (longest time – average time) is reduced by 10 days and a buyer uses 200 boxes a day, and the annual inventory carrying cost of each box is $150, how much does the buyer save annually:
Answer: c) $300,000
When you make a physical distribution system more reliable and regular in its processes:
Answer: c) You reduce the need for inventory.
The development of a new logistics relationship between businesses and trading partners requires which of the following:
Answer: e) All of the above.
When containers were first introduced, a Harvard University transportation economist _______ container-based transportation would lead to a reduction in U.S. manufacturing jobs.
Answer: b) could not see how
What is/are the competitive advantage(s) for IKEA:
Answer: d) Both B and C.
If the reliability of a delivery system (longest time – average time) is reduced by five days, a buyer uses 100 boxes a day, and the annual inventory carrying cost of each box is $12, how much does the buyer save annually:
Answer: b) $6,000
Which of the following is/are advantage(s) of computerization in order-taking processes:
Answer: d) Both B and C.
Which of the following companies successfully added new distribution channels as discussed in the distribution module:
Answer: b) Levi Strauss.
Which of the following might be a reason for a company to distribute through new channels:
Answer: d) All of the above.
Which of the following statements is the key to operating multiple channels:
Answer: d) Both A and C.
When a manufacturer creates its own retail outlets, what is the real rationale for it:
Answer: c) The manufacturer can make higher profits by retailing as well as manufacturing them.
A manufacturer has to reach its target customers, and if those customers shift which channels they shop, then the manufacturer has to:
Answer: a) Add such channels.
As discussed in the distribution module, a common source of conflict between manufacturers and partners is misunderstanding the other party’s viewpoint when it comes to planning and implementing joint marketing programs such as:
Answer: b) Manufacturers get upset when they run advertisements that draw prosp
A manufacturer prefers:
Answer: a) Intra-brand competition.
A manufacturer’s launching of its own outlet stores is mainly because:
Answer: c) Retail channels take advantage of generous buy-back programs and return a lot of stuff.
Retailers and manufacturers need to seek a balance in:
Answer: b) Quality and price.
Retailing success depends on:
Answer: e) All of the above.
As discussed in distribution module, retailing is about:
Answer: e) Both B and C.
Which of the following channel members was negatively affected by Internet marketing:
Answer: a) Travel agencies.
Which of the following is the biggest retail line of business in the U.S. according to U. S. Commerce Department Statistics:
Answer: c) Automotive dealers retailing.
Which of the following retailing has been greatly impacted by Internet marketing as mentioned in the distribution module:
Answer: b) Auto market.
Which of the following statements is true about WalMart in Britain:
Answer: c) WalMart continued to promote every-day low price, ignoring the fact that rivals were flourishing by marketing selection, quality, organic