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Distribution Management

Total questions: 45

Worksheet time: 24mins

Name
Class
Date
1.

Statement A: It is the job of the channel organizer to attempt to explain to the channel members any margin changes that deviate downward from the norm. Statement B: Variations in margins on individual models and styles in a product line are common.

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

2.

There are roles of marketing channel in marketing strategies.

a)

Affecting product strategy through branding, policies, willingness to stock.

b)

Influences the firm's pricing strategy.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

3.

Companies must have to choose talented channel members cautiously because for customers, the channels are the company

a)

Producers should decide what features distinguish the better intermediaries and scrutinize the number of years in business.

b)

To enhance intermediaries’ performance, the company should offer training, market research, and other capability-building programs.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

4.

Logistics is a channel of ____ which adds the value of time and place

a)

Management

b)

Supply Chain

c)

Security

d)

Command

5.

Statement A: Pricing strategy shouldn’t incorporate channel considerations before being implemented. Statement B: Pricing decisions can have a substantial impact on channel member performance

a)

Only statement A is trueOnly statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

6.

Many products require service after the sale

a)

Channel members are much more likely to enthusiastically support new products that they have played a part in developing

b)

Manufacturers of products should make some provision for after-sale service.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

7.

Channel is the link between manufactures and purchasers

a)

The physical distribution system and channel structure is established through which products flow in the marketing channel.

b)

To manage marketing channel, firms must adopt motivational strategies

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

8.

It can have a substantial impact on channel member performance

a)

Pricing strategies

b)

Pricing decisions

c)

Pricing issues

d)

Pricing policies

9.

The single-level channel involves only one middle person.

a)

a retailer who purchases the goods from the manufacturer and sells them to the customers.

b)

Wellington Bazaar is a retail mart which buys the products directly from the manufacturer and makes it available to the consumers.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

10.

Monyeka used to buy furniture directly from a manufacturer or producer. What type of marketing channel does Monyeka is exercising?

a)

Two-level channel

b)

Three-level channel

c)

Zero-level channel

d)

One-level channel

11.

“Franchising” is a form of what type of channel?

a)

Dual distribution channel

b)

Distribution channel

c)

Marketing channel

d)

Dual marketing channel

12.

Statement A: marketers must deny their channel objectives in terms of targeted service output levels. Statement B: Channel design is also affected by numerous environmental factors as competitors’ channels, monetary conditions, and legal regulations and limitations

a)

Only statement A

b)

Only statement B

c)

Either A or B is true

d)

Neither A nor B is true

13.

Market channel is medium through product from raw material move to costumer.

a)

In designing market channel it is important to comprehend customer’s need.

b)

The task of managing marketing channel falls to marketing and sales managers.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

14.

Product positioning refers to a manufacturer’s attempt to have consumers perceive the products in a particular way relative to competitive products

a)

One way of promoting increased enthusiasm and acceptance for new products by channel members is by obtaining some input from them into new product planning.

b)

For new products to be successful, it must be accepted by the final users- whether industrial customers or final consumers.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

15.

Statement A: The one who distributes goods from the manufacturers to the various wholesalers and earns commission over it is called as retailer. Statement B: The person who sells goods in small quantity, directly to the customers at the maximum retail price (MRP) is known as a reseller.

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

16.

Statement A: Direct selling is a medium of distribution in which there is no middle person involved. Statement B: RFV general Merchandise is an example of a direct marketing channel.

a)

only statement A is true

b)

only statement B is true

c)

either A or B is true

d)

neither A nor B is true

17.

Statement A: Retailers and wholesalers often take disadvantage of price promotions so as to maximize their profit potential whether or not it helps the manufacturer or the final consumer. Statement B: Price promotion strategies should be designed to be at least as attractive to retailers as they are to consumers

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

18.

Laui is an unauthorized dealer who used to sell different Nike products at a very low price. What sale does Laui is portraying?

a)

Illicit market

b)

Gray sale

c)

Gray market

d)

Illegitimate sale

19.

“Having the right item in the right quantity at the right time and right place in the right condition to the right customer”. This definition is referred to as ______.

a)

Business Logistics

b)

Engineering Logistics

c)

Management Logistics

d)

transport logistics

20.

Statement A: Price policy assists the producer to ascertain a price list and schedule of discounts and allowances that intermediaries see as equitable and sufficient. Statement B: The Company must assess each alternative against suitable economic, control, and adaptive criteria.

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

21.

The development of new products is a challenge faced by virtually all producers and manufacturers

a)

New technologies, changing customer preferences, and competitive forces all contribute to the need to introduce new products.

b)

No channel member likes to take on a new product that will cause trouble.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

22.

____ is the management of the flow of goods, information and other resource

a)

Logistics

b)

Warehousing

c)

Packaging

d)

marketing

23.

Direct selling is that medium of distribution in which there is no middle person involved, and the manufacturer directly sells the goods or services to the customer.

a)

Rice yield by farmers is purchased and stored in bulk quantity by the wholesalers. The retailers then buy the rice in small portion from the wholesaler and sell it to the customers.

b)

In restaurants, the food is prepared as well as served to the consumers.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

24.

Statement A: Achieving success for new product is independent on may factors. Statement B: The development of new products is a challenge faced by virtually all producers and manufacturers.

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

25.

Marketing Channel consists of the institutions and all the marketing activities in the marketing process

a)

It is a series of ways or activities needed essentially to transfer the ownership of goods, and to move goods, from the point of production to the point of consumptio

b)

Effective channel management requires that the channel manager be aware of how channel management interfaces with product, price, promotion, and logistics in the marketing channel

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

26.

Statement A: Marketing channels are set of mutually dependent organizations involved in the process of making product or service available for utilization. Statement B: Decisions about the marketing channel system are decisive for management.

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

27.

Dual distribution channel allows the manufacturer or wholesaler to reach the end-user by using more than one distribution channel

a)

The consumer goes directly to the producer to buy the product without going through any other channel.

b)

The producer can simultaneously reach the consumer through a direct market, such as a website, or sell to another company or retailer that will reach the consumer through another channel.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

28.

Statement A: It is not unusual for channel members to need special education or training provided by the manufacturer in order to sell new products successfully. Statement B: The manufacturer should try to learn whether channel members feel competent to handle their new products.

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

29.

A wide range of pricing devices is used to carry out such pricing strategy, except

a)

Rebates

b)

Coupons

c)

Seasonal discounts

d)

Surplus

30.

It is the most widely used product strategy

a)

Product pricing

b)

Product line expansion

c)

Product positioning

d)

Product differentiation.

31.

Bul Bazaar is a retail mart which buys products directly from the manufacturer and makes it available to the consumer. Bul Bazaar is an example of what type of marketing channel?

a)

Zero-level channel

b)

One-level channel

c)

Two-level channel

d)

Three-level channel

32.

Most manufacturers have several options when considering product brand strategies.

a)

They might sell their products under one national brand.

b)

They might sell their products under both national and private brands.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

33.

It refers to the process of analyzing, planning, organizing, and controlling the marketing channel

a)

Organization and management

b)

Management marketing channel

c)

Organizing marketing channel

d)

All of the choices

34.

A marketing channel is the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption

a)

It is the way products get to the end-user, the consumer; and is also known as a distribution channel.

b)

It is a broad term referring to numerous activities and processes such as packaging, inventory, warehousing, supply chain and logistics.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

35.

A manufacturer’s price structure must reflect variations in the attractiveness of individual product offerings.

a)

Major changes in the manufacturer’s pricing policies are bound to affect channel members.

b)

Any type of coercive approaches to controlling channel member pricing policies should be ruled out.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

36.

Statement A: Marketing channels are set of mutually independent organizations involved in the process of making products. Statement B: Selected goods go through channels of distribution, and marketing will depend on the way goods are distributed.

a)

only statement A is true

b)

only statement B is true

c)

either A or B is true

d)

neither A nor B is true

37.

Statement A: Informal and systematic reporting procedures are necessary for effective monitoring. Statement B: A consumer must fight competitors for the channel members’ support to sustain the growth of the firm’s product

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

38.

Statement A: A marketing channel is a useful tool for management, and is crucial to creating an effective and well-planned marketing strategy. Statement B: A marketing channel is the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

39.

Focuses on the raw materials supplied to manufacturing, including how, when and from what location.

a)

Supply

b)

Distribution

c)

Manufacturing

d)

warehousing

40.

Choose the best answer according to what is being asked. These are people who buy goods directly from the manufacturer in large quantity to earn a marginal profit.

a)

Agents

b)

Resellers

c)

Wholesalers

d)

Retailers

41.

A professional working in the field of logistics management is called a ______.

a)

Manager

b)

Warehouseman

c)

Logistician

d)

supervisor

42.

Major changes in the manufacturer’s pricing policies are bound to affect channel members.

a)

channel members become very uneasy when they hear about significant changes in manufacturer pricing policies or terms of sale.

b)

channel members’ own pricing strategies may be closely tied to the existing policies of the manufacturer.

c)

Either A or B supports the main idea

d)

Neither A nor B supports the main idea

43.

The following are the key components of distribution, except

a)

manufacturing

b)

warehousing

c)

inventory

d)

transport

44.

Statement A: A price structure should contain offerings at the chief price points, where such price points exist.

Statement B: A manufacturer’s price structure must reflect variations in the attractiveness of individual product offerings

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true

45.

Statement A: Chain of command is defined as a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user.

Statement B: distribution channel is a series of ways or activities needed essentially to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption

a)

Only statement A is true

b)

Only statement B is true

c)

Either A or B is true

d)

Neither A nor B is true