#10 PLACE

Question 1

What is distribution?

Answer 1

Activities required to get the right product to the r place at the r time in the rquantity

Question 2

What is a distribution channel?

Answer 2

The transferring of goods

Move them from the point of production to the point of consumption

Question 3

Distribution channels add value by…

Answer 3

1. making products accessible
2. reducing inefficiencies
3. providing specialized functions (like promotion and storage).

Question 4

Managing distribution channels involves…

Answer 4

balancing cooperation and conflict
- using systems like contracts to ensure smooth operations.

Question 5

Types of Distribution Channels (2)

Answer 5

1. Direct goods 2 consumers
2. Indirectthrough intermediaries

Question 6

Supply Chain

Answer 6

road the product makes from factory to consumer

Question 7

Basic supply chain

Answer 7

manufactures make products and sell them to intermediaries

Question 8

Intermediaries (2)

Answer 8

1. Wholesalers
2. Retailers

Question 9

Intermediaries

Wholesalers

Answer 9

Buy in Bulk
buy from manufacturers and them 2 stores

Costco

Question 10

Intermediaries

Retailers

Answer 10

Stores we shop
Stores buy from whole or directly from manu and sell to consumers

Zara

Question 11

The more steps there are in the chain…

Answer 11

everything is more complicates
- more transactions
- more people involved

Question 12

What is a Distribution strategy?

Answer 12

How to sell good to consumers

Question 13

Types of distribution strategies (2)

Answer 13

1. direct
2. indirect

Question 14

Types of distribution strategies

Direct Distribution

Answer 14

no intermediaries between seller and buyer
- seller often manu

artesanos vendiendo artesanias en pueblitos

Question 15

Types of distribution strategies

Indirect Distribution

Answer 15

one or more intermediaries work with manus to provide to consumers

car agencies: Ford 2 inflable 2 customers
- extra inter can be wholesale

Question 16

What is Distribution Intensity?

Answer 16

how widely a product is distributed

how many places sell it

Question 17

companies decide their distribution intensity based on…

Answer 17

brand image & type of product

Question 18

Types of Distribution Intensity (3)

Answer 18

1. intensive
2. exclusive
3. selective

Question 19

Types of Distribution Intensity

Intensive Distribution

Answer 19

get the product in as * many places as possible*
- the more places people see it, the more they will buy it

soft drinks or snacks

Question 20

Types of Distribution Intensity

Exclusive Distribution

Answer 20

Sell only thorugh a few specific retailers
- keep the product prestigious and mantains its premium image

luxury items

Question 21

Types of Distribution Intensity

Selective Distribution

Answer 21

sell trought a few, carefully* choosen stores*
- balances brand control with wider availability

San Pellegrino @ gourmet grocery stores

Question 22

Specialization

Answer 22

each member focuses on what they are best at

Question 23

Specialization @ manufactures

Answer 23

create products

Question 24

Specialization @ wholesalers

Answer 24

buy in bulk 2 distribute to retailers

Question 25

Specialization @ retailers

Answer 25

provide products to consumers & offers services like customer education, delivery and installation

Question 26

Value Addition

Answer 26

at each step in supply chain the product become more valuable

Question 27

Value Addtion @ raw materials

Answer 27

are turned into finished products

Question 28

Value Addtion @ Transportation

Answer 28

bring products closer to consumers

Question 29

Value Addtion @ Retailers

Answer 29

offer product comparision, customer service, installation

Question 30

# Distribution Channels Vertical Channel Conflicts

Answer 30

between members of different levels | manufactures vs retailers: arriving late

Question 31

# Distribution Channels Horizontal Channel Conflict

Answer 31

between members at the same level | 2 retailers

Question 32

Power in Distribution Channels

Answer 32

when one member can influence another

Question 33

Types of Power in Distribution Channels (3)

Answer 33

1. Reward 2. Coercive 3. Referent

Question 34

# Power in Distribution Channels Reward

Answer 34

offering incentives | Coca paga more por estar centro de shelves

Question 35

# Power in Distribution Channels Coercive

Answer 35

Threatening penalties | delaying payments for later deliveries

Question 36

# Power in Distribution Channels Referent

Answer 36

big desirable to partner with | brands wants to be walmart suppliers

Question 37

Key Functions of an Effective channel of distribution (4)

Answer 37

1. Efficency 2. Sorting 3. Facilitation 4. Standardization

Question 38

# Key Functions of an Effective channel of distribution Efficiency

Answer 38

Reduces the number of marketplace interactions needed for products to reach customers.

Question 39

# Key Functions of an Effective channel of distribution Sorting

Answer 39

Matches customers’ needs with the right products or services.

Question 40

# Key Functions of an Effective channel of distribution Facilitation

Answer 40

Ensures smooth flow of products, information, promotions, payments, and ownership transfers.

Question 41

# Key Functions of an Effective channel of distribution Standardization

Answer 41

Makes transactions fair and efficient for all parties involved.

Question 42

# Channel Types of Supply Chains Vertical (3)

Answer 42

1. Administered 2. Contractual 3. Corporate

Question 43

# Vertical Channel Type in Supply Chains Administered

Answer 43

One channel member uses power to control others | Walmart

Question 44

# Vertical Channel Type in Supply Chains Contractual

Answer 44

Members are bound by contracts | Franchises Mc Donalds

Question 45

# Vertical Channel Type in Supply Chains Corporate

Answer 45

A single company owns multiple levels of the supply chain | Tesla

Question 46

Channel Selection and Design (4)

Answer 46

Factors: 1. Customer/market 2. Product 3. Organizational 4. Competitive

Question 47

# Channel Selection and Design Customer/ Market Factors

Answer 47

* Customer expectations (e.g., convenience or customization). * Geographic dispersion of the market. * Typical order size or quantity. * Service requirements.

Question 48

# Channel Selection and Design Product Factors

Answer 48

* Product type (specialty, shopping, convenience, or unsought). * Perishability. * Complexity or customization. * Distribution intensity (intensive, selective, or exclusive).

Question 49

# Channel Selection and Design Organizational Factors

Answer 49

* Company size and resources. * Scope of the product line. * Desired level of control over the channel.

Question 50

# Channel Selection and Design Competitive Factors

Answer 50

* Market positioning and how competitors structure their channels.

Question 51

Retailing Strategies at the Store (3)

Answer 51

1. Product 2. Pricing 3. Distribution

Question 52

# Retailing Strategies at the Store Product Strategy

Answer 52

* Merchandise categories (e.g., private labels, branded products). * Services offered (e.g., delivery, installation). * Atmospherics: Store design to enhance brand image and engage customers.

Question 53

# Retailing Strategies at the Store Pricing Strategy

Answer 53

* Markups: Setting retail prices above cost to earn profit. * Markdowns: Discounts or promotional pricing to attract customers.

Question 54

# Retailing Strategies at the Store Distribution Strategy

Answer 54

* Location of stores (physical, online, or catalog). * Hours of operation. * Merchandising organization (how products are arranged in-store).