Understanding Distribution Channels

The video tutorial explains the importance of distribution in marketing, focusing on three main channels: direct selling, retailing, and wholesaling. Each channel is discussed in terms of its structure, benefits, and drawbacks, with examples of businesses that use them. The video also introduces the concept of multi-channel distribution, highlighting factors that influence channel choice and the benefits of using multiple channels.

What is the primary role of distribution in the marketing mix?

• To design product packaging

• To create advertising campaigns

• To ensure products are available in convenient locations

• To determine product pricing

Which of the following is a characteristic of direct selling?

• Offers limited control over product distribution

• Requires heavy investment in marketing

• Involves multiple intermediaries

• Involves selling through retail stores

Which businesses are most likely to use direct selling?

• Large retail chains

• Service businesses like dentists

• Manufacturers like Nike

• Wholesalers like Costco

What is a key advantage of using the retailing distribution channel?

• Reduced marketing investment

• Higher profit margins per unit

• No need for intermediaries

• Direct contact with consumers

Why might a manufacturer choose retailing over direct selling?

• To maintain higher profit margins

• To reach a wider range of consumers

• To avoid bulk selling

• To increase marketing costs

What is a potential drawback of wholesaling?

• Lower sales volumes

• Reduced control over retailer selection

• Increased marketing costs

• Higher distribution costs

Which distribution channel involves the most intermediaries?

• Wholesaling

• Retailing

• Direct selling

• Multi-channel distribution

What is a benefit of using wholesalers for distribution?

• Higher profit margins per unit

• Guaranteed high sales volumes

• Direct consumer interaction

• Reduced marketing exposure

What is multi-channel distribution?

• Using only one distribution channel

• Utilizing multiple distribution channels simultaneously

• Focusing solely on direct selling

• Relying exclusively on wholesalers

Which factor is NOT typically considered when choosing a distribution channel?

• Color of the product

• Manufacturer's level of control

• Nature of the product

• Market type