distribution and retailing

Question 1

What is a distribution channel?

Answer 1

Intermediaries involved in the process of making a product or service available for use or consumption
reduces number of channel transactions and results in greater efficiency in making goods available to target markets

Question 2

What are the functions of distribution channels? (8)

Answer 2

Risk taking
information
promotion
contact
matching
negotiation
physical distribution
financing

Question 3

What are the types of marketing channels?

Answer 3

1. Conventional Marketing Channel: manufacturer → wholesaler → retailer → consumer
2. Vertical Marketing System: manufacturer retailer → consumer
3. • Horizontal Marketing System: 2 or more companies at 1 level join for new opp. (café in bank)
4. • Hybrid Marketing System: firm sets up 2 or more marketing channels

Question 4

What is retailing?

Answer 4

selling g/s directly to final consumers for personal, nonbusiness use

Question 5

What is the importance of marketing logistics?

Answer 5

pdt to right customers in the right place at the right time
customer service cornerstone of marketing strategy
logistics a major cost element
explosion in product variety, improvements in info tech has created opportunities for major gains in distribution efficiency

Question 6

What are the classifications of retailing? (8)

Answer 6

1. specialty stores: narrow product line, deep assortment
2. department stores: wide variety product line (clothing, home furnishing)
3. supermarkets: wide variety of food, laundry, home
4. convenience: limited line of high-turnover convenience goods
5. superstores: large assortment of routinely purchased food and nonfood products (toysrus)
6. discount stores: standard merchandise at lowed prices (Walmart)
7. off-price retailers: changing collection of higher quality goods at reduced price
8. warehouse clubs: limited selection of brand-name grocery items, appliances

Question 7

What is the future of retailing? (7)

Answer 7

1. new retail forms and shortening retail lifecycle
2. growth of nonstore retailing
3. increase intertype competition
4. rise of megaretailer
5. growing importance of retail technology
6. global expansion of major retailers
7. retail stores as ‘communities’ or ‘hangouts’

Question 8

What is the retailer marketing mix?

Answer 8

product and service assortment, prices, promotion, place (location)

Question 9

What are the types of vertical marketing systems

Answer 9

1. corporate (common ownership)
2. contractual (contract agreements between members)
3. administered (1/2 ppl)