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WorksheetsMarketing Ch 6 Distribution
Total questions: 52
Worksheet time: 9mins
Many companies carefully think through distribution of new products before it becomes a problem.
True
False
For many products, having the right channels in place is the difference between modest and outstanding success in the market.
True
False
Products that are branded well and promoted effectively don’t need distribution channels.
True
False
Channel distributors come under the “Price” heading of the 4 Ps of the classic marketing mix.
False
True
One of two strategic questions a company must answer about how they will distribute their products to the market is, “How much are customers willing to pay for my product?”
True
False
In most cases, a distribution channel is an intermediary between a manufacturer and the customers who buy its products.
True
False
A direct distribution channel involves using third-party intermediaries to sell or handle a brand’s products.
False
True
An advantage of using direct channels that provide total control is assuming little of the financial risk in how products are distributed.
False
True
Which of the following is an example of a distribution channel a company might use to get its products to market?
An online retailer, like Amazon
A traditional retailer, like Walmart, Target, or Costco
A team of sales representatives
All of these are channels
Distribution channels usually perform all but which of the following functions?
Manufacture goods to sell to customers
Source goods customers need
Place goods where customers want to buy them
Have goods available when customers are ready to buy them
Which of the 4 Ps of the classic marketing mix do channels fall under?
Product
Place
Price
Promotion
Distribution channels provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm wanting to expand in a foreign country in which it currently has no presence?
Differentiation
Access to new markets
Economies of scale
Efficiency
Distribution channels provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm needed to set its products apart from a competing firm with similar products?
Differentiation
Access to new markets
Economies of scale
Efficiency
Distribution channels serve a number of purposes and provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm wanting to benefit from a channel partner’s advanced supply chain and logistical capabilities?
Differentiation
Access to new markets
Economies of scale
Efficiency
Distribution channels serve a number of purposes and provide many benefits to the companies that use them. What is the benefit a channel might provide to a firm wanting to create efficiency or convenience for itself and its customers?
Differentiation
Access to new markets
Economies of scale
Efficiency
What type of indirect channel would create efficiency for residential builders, who must acquire a variety of building materials to construct a home?
A building materials brand website with ecommerce capabilities
A contractor’s warehouse
A building materials brand’s direct sales team
A building materials brand’s showroom/retail store
The two major types of channels are:
Real and virtual
Formal and informal
Tangible and Intangible
Direct and indirect
Which type of distribution is one that the manufacturer or supplier owns?
Direct
Indirect
Informal
Discrete
What type of distribution relies on third-party intermediaries?
Direct
Indirect
Informal
Discrete
Your company sells a product for which the sales process is complex and the sales process itself delivers a lot of value in the form of consulting. What type of channel structure makes the most sense in this situation?
Direct
Indirect
Informal
Discrete
Which of these are examples of direct channels?
A company sales representative
A company retail store
A company website for purchasing products
All of these are examples of direct channels
A company manufactures its products in bulk and cannot handle small orders from individual consumers. What type of channel structure makes sense for this company?
Indirect
Logistical
Direct
Economic
A local business produces a single product that customers usually purchase as part of an assortment of other goods and products. What type of distribution strategy makes the most sense for this business?
A sales representative to sell the product directly to customers
A company-owned store that sells the product directly to consumers
A distributor that will place the product on a shelf or in a cart of other products
All of these distribution strategies make sense in this situation
The accounting term for what manufacturers must know to determine what margin to let an indirect channel partner earn is
Cost of goods sold
Payback period
Return on Investment
Reorder point
Indirect channels typically make money by:
Charging the manufacturer for warehouse and shelf space
Marking up shipping and handling costs
Getting a percentage of what consumers pay to buy products
All of these answers are correct
Your company manufactures a product with a cost of goods sold of $5 and a retail price of $10. You’re considering an indirect distribution partnership that would require you to pay a 50% margin to your distribution partner. What will be the financial result of this partnership?
You will make money on every sale
You will break even on every sale
You will lose money on every sale
You will make money on some and lose money on others
The Cost of Goods Sold for your product is $10. You desire to make a profit of $10 on each product sold, so you set the manufacturer’s suggested retail price at $20. A retailer approaches you and proposes selling your product in its stores, and asks for a 50% margin on sales. How will this proposal affect your revenues?
We will lose money
We will break even
We will gain money
We will make all of the money!
Distribution connects products to people.
True
False
What are the two words that should describe a distribution channel?
Profitable and Fast
Efficient and Profitable
Efficient and Relaxed
Profitable. Profitable.
You produced 500 watermelon in your big garden at home! You are wanting to sell them whenever you can since they have a long life shelf and want to make the most money from each fruit. Where would be the most efficient place to sell?
Roadside Stand
Grocery Store
Dollar General
Target
You produced 500 watermelon in your big garden at home! You are wanting to sell them as soon as possible and willing to give up some of the profit if that means more people would be interested in buying them from you. Where are you going to sell?
Roadside Stand
Grocery Store
Dollar General
Target
Channel members involved in making the product or service available are called:
Sharks
Angel Investors
Intermediaries
Intermissions
A person or company that sells directly to the public in small quantities for use or consumption is called:
Wholesaler
Consumer
Producer
Retailer
When a business needs to enter a new market quickly, finding the right channel partner is often the fastest way to do that.
True
False
Without a channel partner to help sell its inventory, a manufacturer must rely on its own sales efforts to move its inventory.
True
False
What is the primary goal of a distribution channel?
To connect manufacturers with retailers
To maximize profit margins
To get the product to the customer effectively
To reduce manufacturing costs
Which of the following is NOT one of the five reasons why distribution channels are needed?
Differentiation
Economies of Scale
Efficiency
Product development
How can distribution channels provide differentiation for products?
By creating unique product features
By affecting perceived value based on where an item is sold
By reducing the cost of goods sold
By eliminating competitors from the market
What does "economies of scale" refer to in the context of distribution channels?
The ability to reach international markets
Cost advantages that occur when production becomes efficient
The creation of barriers to entry for competitors
The diversification of product offerings
Which statement about distribution costs is accurate?
Production costs are always higher than distribution costs
Many products cost more to distribute than to produce
Distribution costs are generally fixed regardless of channel
Direct channels always have lower distribution costs
What is an indirect channel of distribution?
A channel that eliminates all intermediaries
A channel that uses any third-party intermediary between the selling brand and the buying customer
A channel exclusively used for international distribution
A channel that only serves business customers
Which of the following is an example of a direct channel?
Selling through Amazon
Selling through Walmart
Selling through a company's online store
Selling through a wholesaler
What is the main goal of supply chain management?
Increase advertising
Manage the flow of goods from raw materials to customers
Sell products online
Reduce employee costs
What do manufacturers do in the supply chain?
Sell products to customers
Store products
Turn raw materials into finished goods
Deliver products
Which distribution strategy focuses on selling products everywhere?
Selective
Exclusive
Intensive
Direct
Which strategy is MOST associated with luxury brands?
Selective
Exclusive
Intensive
Direct
Which distribution strategy balances availability and brand image?
Selective
Exclusive
Intensive
Direct
What is a key benefit of exclusive distribution?
Strong brand image
High availability
Low control
Lower prices
Where would you MOST likely find intensive distribution?
High-end boutiques
One store per city
Private warehouses
Grocery stores and gas stations
What does e-commerce refer to?
Selling only in stores
Buying and selling online
Manufacturing goods
Shipping products
Which is a major advantage of e-commerce?
Limited selection
Higher prices
Convenience
No competition
Which is a challenge of e-commerce?
Too many store locations
Shipping delays
Too much customer interaction
High store rent
