Marketing

Question 1

What is the purpose of channel distribution

Answer 1

To get a product or service into the hands of the consumer efficiency asap

Question 2

What is a wholesaler

Answer 2

○ Buys product from the producers, sells to another business
○ in large quantities and sells them to realters in smaller quantities
○ B2B

Question 3

What is a retailer

Answer 3

○ Sells products directly to consumers for personal use in small quantities
○ Buys from products or wholesalers to consumer
○ B2C

Question 4

Why would a business use a wholesaler

Answer 4

○ to distribute goods efficiently to retailers
○ reduce costs
○ benefit from their expertise in distribution

Question 5

Why would a business use a retailer

Answer 5

○ to reach consumers directly
○ provide convenient buying experience for customers

Question 6

What is an agent/ broker

Answer 6

○ connects buyers and sellers
○ knows about the market

Question 7

Why would a company use an agent/ broker

Answer 7

○ Used in situations when it is hard for buyers and sellers to find each other
○ Ex. real estate angents connect buyers with sellers

Question 8

Direct distribution

Answer 8

○ channel of distribution with no links
○ Many services have direct
Would use to collect data on customer buying habits

Question 9

Indirect distribution

Answer 9

○ channel of distribution with more than one intermediary
○ Would use to share shipping and storage costs, making it easier for customers to find products

Question 10

What are the four elements of physical distribution

Answer 10

Products to be shipped
○ Raw materials, manufactured goods, finished consumer goods –> Cargo, merchandise
Channel Members
○ business that need to distribute their products may transport their own goods, may hire transportation companies
Transportation Companies
○ physicaly moving goods from buyer to seller
Warehouses
○ building where large quantities of products are stored until needed for shipping –> inventory

Question 11

What are the five modes of transportation

Answer 11

1. Truck
2. Ship
3. Train
4. Pipeline
5. Plane

Question 12

what are the (dis)advantages of the modes of transportation

Answer 12

Truck: deliver door-to-door, delay easily
Ship: move large quantities lower cost per item, requires another mode of transportation
Train: Move large quantities long distance at low cost, only go where the tracks are
Plane: speed, expensive
Pipeline: limited types of product can be transported, expensive

Question 13

what are the 5 steps how business process orders

Answer 13

1. Receiving and filling orders
2. Business verifies the order - checking product availability, pricing, business checks if items are in stock
3. Picked items collected in the warehouse
4. Items are packaged and labelled then shipped
   Bar-code scanning helps keep track of orders and inventory

Question 14

what is place decisions

Answer 14

To make products conveniently available to the target market

Question 15

what are the four plave decisions

Answer 15

1. Location
2. Hours of operation
3. Channels of distribution
4. Transportation

Question 16

What is the difference between distribution of goods and distribution of services and ideas

Answer 16

Distribution of goods gets physically transported whereas services dose not need a physical transportation to get the service to the consumer