Chapter 12

Question 1

explain the importance of distribution and the interrelationships among distribution channels, supply chain management, and logistics management

Answer 1

Companies cannot take the distribution of products for granted. Appropriate distribution channels must be identified and channel members need to be convinced to carry these new products, both of which are integral to a successful distribution strategy

Question 2

Describe distribution channel design and management decisions and strategies

Answer 2

firms can choose from direct, indirect, and multi-channel distribution.
Firms that want market exposure: intensive distribution,
Firms that want to maintain an exclusive image or are not large enough to sell to everyone : exclusive distribution strategy.

Question 3

Identify how distribution channels add value to businesses and consumers

Answer 3

Without distribution channels, consumers would be forced to find raw materials, manufacture products, and somehow get them to where they could be used, all on their own. Supply chain management creates value for each firm in the chain and helps bind together many company functions, including manufacturing, inventory management, transportation, advertising, and marketing.

Question 4

Explain how logistics management affects distribution strategy

Answer 4

strong logistics management directly enhances a distribution strategy by optimizing efficiency, reducing costs, and improving customer satisfaction.

Question 5

what is a distribution channel

Answer 5

set of institutions and marketing activities that transfer the ownership of goods and move goods from the manufacturer or producer to the consumer.

Question 6

what is a supply chain management

Answer 6

effort to coordinate suppliers, manufacturers, warehouses, stores, and transportation intermediaries so that the merchandise the customer wants is produced in the right quantities and sent to the right locations at the time the customer wants it.

Question 7

difference between logistics management and supply chain management

Answer 7

Logistics concentrates on the physical movement and control of the products, whereas supply chain management includes the managerial aspects of the process as well.