Chapter 6

Question 1

Define Wholesaler & Wholesaling.

Answer 1

Wholesaling: All activities involved in selling of goods and services to those buying for resale or business use.

Wholesaler: A firm engaged primarily in wholesaling activity.

Question 2

Define Retailer & Retailing

Answer 2

Retailing: All activities involved in selling of goods and services directly to final consumers for their personal & non-business use.

Retailer: A business whose sales come primarily from retailing.

Question 3

What is a Marketing/Distribution Channel?

Answer 3

A set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user.

Question 4

What is Value Delivery Network?

Answer 4

The network made up of company, suppliers, distributors and customers who partner with each other to improve the performance of the entire system

Question 5

What is the prime role of distributors?

Answer 5

To reduce the number of distribution transactions of individual company.

Question 6

Define Channel Level (DIRECT & INDIRECT Marketing Channel)

Answer 6

Direct Marketing Channel: A marketing channel that has no intermediary levels.
Indirect Marketing Channel: Channel containing one or more intermediary levels.

Question 7

What are the types of Marketing Channels?

Answer 7

Consumer Marketing Channel:
Manufacturer, to,
Wholesaler, to,
Retailer, to,
Consumer

Business Marketing Channel:
Manufacturer, to,
Business Distributor, to,
Business Consumer

Question 8

Define Marketing Logistics & its functions.

Answer 8

Tasks involved in planning & controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit.

1. Warehousing:
   a. Storage Warehouse: Store goods for moderately longer duration.
   b. Distribution Centers: To move goods rather than just storing them.
2. Inventory Management:
   Manage inventory movement rather than stocking them. Companies generally adopt JIT (Just In Time) approach.
3. Transportation:
   Mode used for shipping the goods to & fro from customer to warehouse
   Modes of transport – Road, Rail, Water, Air, Pipeline.
4. Logistics Information Management:
   Sharing of information through Electronic data Interchange (EDI)
   Mail
   Telephone
   Sales Force etc.

Question 9

What are the types of Wholesalers?

Answer 9

1. Merchant Wholesaler
2. Brokers & Agents
3. Manufacture’s & Retailer’s branches & offices