Marketing Exam 3 Test Part 2

What is the primary focus of logistics in marketing?

focuses on getting products to customers.

What are the three main considerations in physical distribution?

Physical distribution costs, customer service level, and sales.

What does the total cost of physical distribution include?

Inventory cost, cost of lost sales, and transportation cost.

What factors affect physical distribution service levels?

Product availability, order processing time, backorder procedures, inventory storage, order accuracy, damage in transit, online status information, advance info on delays, delivery time, and reliability.

What is JIT in logistics?

It is a strategy that aims to reduce inventory costs by receiving goods only as they are needed in the production process.

How does better information help coordinate physical distribution?

improves coordination by enhancing product availability and reducing intentional delays.

What are the costs associated with storing inventory?

storage, handling, damage while in inventory, risk of obsolescence, interest expense, and opportunity cost.

What are specialized storage facilities?

Facilities that may be required based on type of warehouse characteristics, including fixed investment, unit cost, and control.

What is the difference between private and public warehouses?

require a fixed investment and can have varying costs based on volume

Public Warehouses

have no fixed investment and generally lower costs.

What is the nature of retailing in marketing?

Is a significant business sector where a few large retailers dominate the market.

What are the key decisions in marketing strategy for retailers?

Product selection, place, price, promotion, and target market.

What does product selection involve in retail marketing?

Width and depth of assortment, brands, quality, after-sale service, and special services.

What are some pricing strategies retailers might use?

Discount policies, frequency and level of sale prices, and whether to charge for delivery or other services.

What is the role of transportation costs in marketing?

impact the selling price for different products and vary based on mode, cost, delivery speed, and number of locations served.

What is the importance of customer service level in physical distribution?

It measures the percentage of customers served within a specific time period.

What is the impact of inventory management on marketing strategy?

Effective inventory management helps achieve production economies of scale and builds channel flexibility.

What are the implications of product availability in logistics?

It sets customer expectations about delivery and influences the coordination of physical distribution.

What is the cost of damage while in inventory?

It refers to the financial loss incurred when products are damaged while stored.

What is the significance of compliance in physical distribution?

ensures that products meet quality standards and customer expectations.

What is the concept of total inventory cost?

It includes all costs associated with holding and managing inventory, such as storage, handling, and obsolescence.