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Marketing Ch 6 Distribution

Total questions: 52

Worksheet time: 9mins

Name
Class
Date
1.

Many companies carefully think through distribution of new products before it becomes a problem.

a)

True

b)

False

2.

For many products, having the right channels in place is the difference between modest and outstanding success in the market.

a)

True

b)

False

3.

Products that are branded well and promoted effectively don’t need distribution channels.

a)

True

b)

False

4.

Channel distributors come under the “Price” heading of the 4 Ps of the classic marketing mix.

a)

False

b)

True

5.

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?”

a)

True

b)

False

6.

In most cases, a distribution channel is an intermediary between a manufacturer and the customers who buy its products.

a)

True

b)

False

7.

A direct distribution channel involves using third-party intermediaries to sell or handle a brand’s products.

a)

False

b)

True

8.

An advantage of using direct channels that provide total control is assuming little of the financial risk in how products are distributed.

a)

False

b)

True

9.

Which of the following is an example of a distribution channel a company might use to get its products to market?

a)

An online retailer, like Amazon

b)

A traditional retailer, like Walmart, Target, or Costco

c)

A team of sales representatives

d)

All of these are channels

10.

Distribution channels usually perform all but which of the following functions?

a)

Manufacture goods to sell to customers

b)

Source goods customers need

c)

Place goods where customers want to buy them

d)

Have goods available when customers are ready to buy them

11.

Which of the 4 Ps of the classic marketing mix do channels fall under?

a)

Product

b)

Place

c)

Price

d)

Promotion

12.

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?

a)

Differentiation

b)

Access to new markets

c)

Economies of scale

d)

Efficiency

13.

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?

a)

Differentiation

b)

Access to new markets

c)

Economies of scale

d)

Efficiency

14.

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?

a)

Differentiation

b)

Access to new markets

c)

Economies of scale

d)

Efficiency

15.

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?

a)

Differentiation

b)

Access to new markets

c)

Economies of scale

d)

Efficiency

16.

What type of indirect channel would create efficiency for residential builders, who must acquire a variety of building materials to construct a home?

a)

A building materials brand website with ecommerce capabilities

b)

A contractor’s warehouse

c)

A building materials brand’s direct sales team

d)

A building materials brand’s showroom/retail store

17.

The two major types of channels are:

a)

Real and virtual

b)

Formal and informal

c)

Tangible and Intangible

d)

Direct and indirect

18.

Which type of distribution is one that the manufacturer or supplier owns?

a)

Direct

b)

Indirect

c)

Informal

d)

Discrete

19.

What type of distribution relies on third-party intermediaries?

a)

Direct

b)

Indirect

c)

Informal

d)

Discrete

20.

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?

a)

Direct

b)

Indirect

c)

Informal

d)

Discrete

21.

Which of these are examples of direct channels?

a)

A company sales representative

b)

A company retail store

c)

A company website for purchasing products

d)

All of these are examples of direct channels

22.

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?

a)

Indirect

b)

Logistical

c)

Direct

d)

Economic

23.

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)

A sales representative to sell the product directly to customers

b)

A company-owned store that sells the product directly to consumers

c)

A distributor that will place the product on a shelf or in a cart of other products

d)

All of these distribution strategies make sense in this situation

24.

The accounting term for what manufacturers must know to determine what margin to let an indirect channel partner earn is

a)

Cost of goods sold

b)

Payback period

c)

Return on Investment

d)

Reorder point

25.

Indirect channels typically make money by:

a)

Charging the manufacturer for warehouse and shelf space

b)

Marking up shipping and handling costs

c)

Getting a percentage of what consumers pay to buy products

d)

All of these answers are correct

26.

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?

a)

You will make money on every sale

b)

You will break even on every sale

c)

You will lose money on every sale

d)

You will make money on some and lose money on others

27.

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?

a)

We will lose money

b)

We will break even

c)

We will gain money

d)

We will make all of the money!

28.

Distribution connects products to people.

a)

True

b)

False

29.

What are the two words that should describe a distribution channel?

a)

Profitable and Fast

b)

Efficient and Profitable

c)

Efficient and Relaxed

d)

Profitable. Profitable.

30.

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?

a)

Roadside Stand

b)

Grocery Store

c)

Dollar General

d)

Target

31.

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?

a)

Roadside Stand

b)

Grocery Store

c)

Dollar General

d)

Target

32.

Channel members involved in making the product or service available are called:

a)

Sharks

b)

Angel Investors

c)

Intermediaries

d)

Intermissions

33.

A person or company that sells directly to the public in small quantities for use or consumption is called:

a)

Wholesaler

b)

Consumer

c)

Producer

d)

Retailer

34.

When a business needs to enter a new market quickly, finding the right channel partner is often the fastest way to do that.

a)

True

b)

False

35.

Without a channel partner to help sell its inventory, a manufacturer must rely on its own sales efforts to move its inventory.

a)

True

b)

False

36.

What is the primary goal of a distribution channel?

a)

To connect manufacturers with retailers

b)

To maximize profit margins

c)

To get the product to the customer effectively

d)

To reduce manufacturing costs

37.

Which of the following is NOT one of the five reasons why distribution channels are needed?

a)

Differentiation

b)

Economies of Scale

c)

Efficiency

d)

Product development

38.

How can distribution channels provide differentiation for products?

a)

By creating unique product features

b)

By affecting perceived value based on where an item is sold

c)

By reducing the cost of goods sold

d)

By eliminating competitors from the market

39.

What does "economies of scale" refer to in the context of distribution channels?

a)

The ability to reach international markets

b)

Cost advantages that occur when production becomes efficient

c)

The creation of barriers to entry for competitors

d)
  1. The diversification of product offerings

40.

Which statement about distribution costs is accurate?

a)

Production costs are always higher than distribution costs

b)

Many products cost more to distribute than to produce

c)

Distribution costs are generally fixed regardless of channel

d)

Direct channels always have lower distribution costs

41.

What is an indirect channel of distribution?

a)

A channel that eliminates all intermediaries

b)

A channel that uses any third-party intermediary between the selling brand and the buying customer

c)

A channel exclusively used for international distribution

d)

A channel that only serves business customers

42.

Which of the following is an example of a direct channel?

a)

Selling through Amazon

b)

Selling through Walmart

c)

Selling through a company's online store

d)

Selling through a wholesaler

43.

What is the main goal of supply chain management?

a)

Increase advertising

b)

Manage the flow of goods from raw materials to customers

c)

Sell products online

d)

Reduce employee costs

44.

What do manufacturers do in the supply chain?

a)

Sell products to customers

b)

Store products

c)

Turn raw materials into finished goods

d)

Deliver products

45.

Which distribution strategy focuses on selling products everywhere?

a)

Selective

b)

Exclusive

c)

Intensive

d)

Direct

46.

Which strategy is MOST associated with luxury brands?

a)

Selective

b)

Exclusive

c)

Intensive

d)

Direct

47.

Which distribution strategy balances availability and brand image?

a)

Selective

b)

Exclusive

c)

Intensive

d)

Direct

48.

What is a key benefit of exclusive distribution?

a)

Strong brand image

b)

High availability

c)

Low control

d)

Lower prices

49.

Where would you MOST likely find intensive distribution?

a)

High-end boutiques

b)

One store per city

c)

Private warehouses

d)

Grocery stores and gas stations

50.

What does e-commerce refer to?

a)

Selling only in stores

b)

Buying and selling online

c)

Manufacturing goods

d)

Shipping products

51.

Which is a major advantage of e-commerce?

a)

Limited selection

b)

Higher prices

c)

Convenience

d)

No competition

52.

Which is a challenge of e-commerce?

a)

Too many store locations

b)

Shipping delays

c)

Too much customer interaction

d)

High store rent