QUESTIONS AND ANSWERS | REAL EXAM QNA | 2025 LATEST
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Distribution Decisions - (answer)involve managing the marketing channel (pipeline of org. that a
product passes from producer to consumer)
Channel Members - (answer)distributors, resellers, wholesalers, retailers, etc.
Supply Chain - (answer)network of business entities that support marketing channel functions
Functions of Channel Members - (answer)- Transactional functions
- Logistical functions
- Facilitation functions
Transactional Functions - (answer)include contacting and promoting products to potential
customers
-buying and selling
-risk-taking
Logistical Functions - (answer)provided through physical distribution, storing, and sorting of
goods
(Ex: eggs)
-storing off loads risk
,Facilitation Functions - (answer)include both research and finance. Research includes collecting
information to and from the producer and the consumer. Finance includes providing help to
move the product through the channel.
Financial Ex: Sears
Grading Ex: Dairy products, meat
Channel Depth - (answer)number of intermediaries between the producer and consumer.
- no depth in direct markets
-smaller manufacturers often use deep channels
Channel Width - (answer)number of outlets offering a product in a particular geographic area
3 Types of Channel Coverage Strategies - (answer)-Intensive distribution
-Selective distribution
-Exclusive distribution
Intensive Distribution - (answer)provides widest coverage; used for routine buying decisions
where proximity to the customer is paramount; maximize exposure, placement is important
(Ex: gum)
2 Reasons Why Not All Products are Intensively Distributed - (answer)-distribution costs go up
as a firm widens their product coverage
-there is tradeoff between coverage and sales effort on the part of channel members
Selective Distribution - (answer)distributing a product in selected outlets within a geographic
area
-provides coverage with some expectation of sales effort
(Ex: electronics)
, Exclusive Distribution - (answer)maximizes sales effort while minimizing coverage (one outlet
in geographic area)
-distributor gets all the sales of product, but also may sell other products
-experts in sales "push" the product and provide "after-the-sale" service
(Ex: cars)
Global Distribution - (answer)- channel and distribution systems may be among the most
challenging to do this because of infrastructures, distribution networks, and responsibilities
differing country to country
Decentralized Distribution - (answer)believed to optimize customer satisfaction, but global is
becoming more feasible.
Which country has many more levels of distribution than the US? - (answer)Japan, but their
systems are costly, timely, and complex
What percentage of the market is covered by smaller independent wholesalers? - (answer)1/5 or
1/4
Forms of retailing that penetrate foreign markets - (answer)-catalogs
-convenience/self-service stores
-discount stores
-franchises
Retailing - (answer)least globalized recently, but changing rapidly
most retail establishments are small, but the top 10 have more than 15% total retail trade in US
Types of Retailers - (answer)-department stores
-discount stores