WorksheetsDistribution policy UNIT 6 (RA3)
Total questions: 20
Worksheet time: 2hrs 40mins
Which link in the distribution chain typically carries out activities such as storage, transport, pre-sales, and after-sales services?
Agents.
Wholesalers.
Distributors.
Retailers.
What distinguishes a selective product distribution from an exclusive product distribution?
Selective product distribution targets a broad population group, while exclusive product distribution targets a niche market.
Selective product distribution involves fewer intermediaries compared to exclusive product distribution.
Selective product distribution typically offers products at a lower price point compared to exclusive product distribution.
Selective product distribution requires intensive marketing efforts, while exclusive product distribution relies on word-of-mouth advertising.
How does mass consumption product distribution differ from exclusive and selective product distributions?
Mass consumption product distribution focuses on high-quality, high-priced items.
Mass consumption product distribution involves limited intermediaries similar to exclusive distribution.
Mass consumption product distribution targets a broad population group and typically employs intensive or extensive distribution strategies.
Mass consumption product distribution is characterized by limited availability and exclusivity.
What is the main role of distribution?
Connecting production to consumption.
Collecting data for marketing purposes.
Showcasing products at the point of purchase.
Delivering the product to the end consumer in the right quantity and location.
Which of the following distribution strategies aims to make a brand feel like a VIP by choosing only a few select points of sale?
Intensive distribution.
Selective distribution.
Exclusive distribution.
Unique distribution
Which type of distribution channel involves the manufacturing company directly delivering its product to the end customer without intermediaries?
External or indirect channel.
Short external distribution channel.
Own or direct channel.
Unique channel
What is one of the primary functions of intermediaries ?
Matching supply to demand.
Providing additional services such as installation.
Advertising the product through various channels.
Reducing the number of contacts required for distribution.
What distinguishes wholesalers from agents in the distribution chain?
Wholesalers primarily make money from commissions and fees.
Agents purchase goods from producers in bulk and store them in warehouses.
Wholesalers have a close relationship with the producer.
Wholesalers purchase goods from producers and resell them in smaller amounts at a profit.
What is one of the drawbacks of multichannel marketing?
Need for more control and complex logistics.
Risk of cannibalization between channels.
Boost in user satisfaction and customer loyalty.
Exploration of new business areas for marketing new products and services.
What is the primary decision to be made by a company regarding international distribution?
Selecting the most efficient distribution channel.
Choosing between distributing directly or through local companies.
Determining the geographical dispersion of points of sale.
Analyzing the competition's distribution system.
Which of the following elements are crucial components of the physical distribution system?
Market analysis and sales forecasting techniques.
Product development and quality control measures.
Financial accounting and budgeting procedures.
Location of warehouses and stock, inventory management and control, handling of packaging materials, order processing, transport, and warehousing products.
What distinguishes a long external distribution channel?
The product goes from the manufacturer to the retailer, and from the retailer to the end customer.
The product travels from the manufacturer to the consumer without involving retailers.
The product travels from the manufacturer to the wholesaler, then to the retailer, and finally to the consumer.
The distribution involves multiple intermediaries including wholesalers, retailers, and exclusive agents.
What is a characteristic of cooperation agreements regarding distribution in international marketing?
The exporting company has direct control over the distribution channels.
Intermediaries play a minimal role in controlling sales channels.
Distribution control is the responsibility of the exporting company's local partner.
The exporting company has minimal influence over the choice of channels.
What factors influence the choice of a distribution channel?
Internal factors, competition, market factors, and availability of intermediaries.
Internal factors, competition, market size, and consumer preferences.
Availability of intermediaries, market competition, and economic capacity.
Export modality of the company, type of product, technical and economic capacity, customer preferences, and characteristics of intermediaries.
Why do franchisees pay the franchisor periodic royalties?
To show off the brand, image, and prestige.
To throw a party for signing the franchise contract.
To share the benefits received, usually as a percentage of sales or profits.
To support the services provided by the franchisee.
Which trend in international distribution involves retailers managing their own brands entirely, from design to promotional campaigns?
Concentration.
The rise of private labels.
The development of new distribution formulas.
The presence of large marketplaces.
What type of products are recommended for intensive distribution ?
High-end luxury items.
Products with limited availability.
Basic needs products such as food, hygiene, and cleaning products.
Products available only through mobile apps.
What does multichannel conflict refer to in distribution strategies?
The risk of different channels not being perceived as part of the same business.
More complex logistics and greater need for control.
When two or more channels established by the manufacturer compete with each other in selling within the same market.
The potential risk of cannibalization between channels.
What distinguishes a franchisee from a franchisor in the context of franchising?
The franchisee owns the brand, formula, and commercial recognition.
The franchisor owns the brand, formula, and commercial recognition.
The franchisee employs the know-how provided by the franchisor.
The franchisor pays royalties to the franchisee.
What is a potential challenge associated with disintermediation in online sales?
Increasing profit margins by eliminating wholesalers and retailers.
Handling numerous small orders from different countries and cultures.
Reaching new customers and increasing company awareness.
Integrating sales and logistics for marketing numerous small orders.
