exam 1

Question 1

End user

Answer 1

does not resell in present form

Question 2

contractor

Answer 2

is an end user

Question 3

OEM

Answer 3

original equipment manufacturer

Question 4

MRO

Answer 4

maintenance, repair, and operations

Question 5

levels of distribution

Answer 5

Exclusive -> selective -> intensive

Exclusive: like Maserati
Selective: like rolex
Intensive: like washer and dryer

Question 6

Breaking bulk

Answer 6

selling product in smaller quantities than allowed by manufacturing

Question 7

assortment

Answer 7

bundling products and services together

Question 8

purchase time

Answer 8

when the consumer wants to place the order

Question 9

Inside sales

Answer 9

no face to face with customers, must be able to analyze and respond quickly, should have good problem solving skills

Question 10

Outside sales

Answer 10

• rep should be a specialist in the customer’s business area
• meet customers in person at customers’ business place
• sufficient product knowledge
• should be able to advise customers and recommend products and services that will help the customer by reducing their operating costs
• saving money and solving problems.

Question 11

sales manager

Answer 11

• training, coordination, evaluation, technical expertise of inside and outside sales force
• set goals and quotas for salespeople, identify important accounts and primary products to those accounts
• evaluate results and reward those who meet objectives
• major role in determining product lines to purchase and inventory

Question 12

PAID

Answer 12

professional association for industrial distribution

Question 13

Product based purchasing

Answer 13

• Buy what can be sold at profit,
• Distributor decides what to buy, sales team figures out to whom it can be sold at a profit,
• A little “Old School” but still exists in many channels

Question 14

Customer based purchasing

Answer 14

Distributor decides to buy based on the requirements of
the customers they are serving, Tries to provide products at desired service level and
most economical cost

Question 15

buy-outs

Answer 15

Required when merchandise ordered by customer not available in inventory, Normally buy-outs are done from the local competitor to satisfy customer orders, Better forecasting will lead to less instances of buy-outs

Question 16

Service outputs of distributor

Answer 16

selling, inventory, credit, transportation, servicing

Question 17

selling

Answer 17

providing technical and market information to those who specify, purchase, manufacture, or install industrial products. Understanding a customer’s business to be able to solve problems

Question 18

Inventory

Answer 18

maintaining a local inventory of products on the shelf for immediate delivery or pickup

Question 19

Credit

Answer 19

extending credit to industrial customers

Question 20

Transport

Answer 20

provide transportation to user’s location

Question 21

Servicing

Answer 21

serving products after they have been sold and sometimes even after they have been installed

Question 22

Industrial channel design

Answer 22

manufacturer -> master distributor -> distributor -> end user

Question 23

Sales model

Answer 23

Design
Construct
Solve technical problems

Question 24

Sale is complete when…

Answer 24

customer successfully uses the product

Question 25

Manufacturer’s agent

Answer 25

Similar responsibilities, customer base, duties, and required skills as Manufacture Sales Representative previously discussed (may even refer to themselves as ‘Manufacturer Rep’). - - Usually represents multiple companies each of which whose sales in a given territory do not support a full salaried employee. May call on distributors, end users, specifiers, and manufacturers, Usually complimentary products, DO NOT stock inventory; typically do not own it

Question 26

3PL's

Answer 26

third party logistics like transportation, warehousing, etc

Question 27

other members of supply chain

Answer 27

Banks Integrators Architects Engineers modifiers

Question 28

responsibility of manufacturer

Answer 28

Producing quality products Maintaining consistent lead-times Creating markets - End user and specifier calls - Advertising in magazines, trade journals, internet, trade shows, etc. Printed or electronic catalogs Provide technical information and training Protect the channel (Design Wins) Understand value and compensate channel partners

Question 29

RFID

Answer 29

Radio-Frequency IDentification

Question 30

Manufacturer sales rep (factory rep)

Answer 30

Responsible for sales in a given territory, May call on end users, distributors, specifiers, or agents

Question 31

roles of distributor

Answer 31

(summary) Successful distributors are continuing to evolve from the traditional role of component/product supplier to true business partner, using in-depth knowledge of their customer’s business to reduce the customer’s overall operating costs.