M8

Question 1

set of activities and decision ensuring right products to right customers in right time and price at right place in a right manner

Answer 1

Place Mix

Question 2

moves drug products and related goods from the drug manufacturer to the final end user

Answer 2

Distribution channel

Question 3

includes all the activities associated with the supply of finished products at every step, from the production line to the consumers

Answer 3

Physical distribution

Question 4

include customer service, order processing, inventory control, transportation and logistics, and packaging and materials

Answer 4

Physical distribution

Question 5

means distribution channels and physical distribution

Answer 5

Place

Question 6

It is a very vital element of the total marketing mix that ensures the adequate availability and visibility of the right products.

Answer 6

Place

Question 7

The last element of the marketing mix

Answer 7

Place mix

Question 8

this is the process and methods used to bring the product or service to the consumer

Answer 8

Place Mix

Question 9

Place mix is also known as

Answer 9

placement or distribution

Question 10

process of moving products from the producer to the intended user

Answer 10

Place

Question 11

This refers to the set of pharmaceutical firms and individuals that take title or assist in transferring title to a drug product or service as it moves from the drug manufacturer to the final consumer.

Answer 11

Pharmaceutical Distribution Channel

Question 12

the route along which the right pharmaceutical products flow from the drug manufacturer’s production to final consumption

Answer 12

Distribution channel

Question 13

The customers or end-users in the pharmaceutical industry basically want drug products that satisfy the following criteria:

Answer 13

○ Right standards and quality
○ Right specifications
○ Right commercial stocks levels at all times
○ Right savings
○ Right service warranties

Question 14

Five Basic Channel Decision

Answer 14

◉ Do we use direct or indirect channels?
◉ Single or multiple channels
◉ Cumulative length of the multiple channels
◉ Types of intermediary
◉ Number of intermediaries at each level

Question 15

Consists of a drug manufacturer selling directly to the Department of Health (DOH) or government Health Units and Hospitals who will in turn make the medicines available to the end-users practically for free.

Answer 15

Channel 1

Question 16

Contains two middlemen level. A representative sales of a drug manufacturer selling to dispensing physicians who in turn sells the medicines to the patients (end-users) charging the latter consultation fees and medicines given.

Answer 16

Channel 2

Question 17

Contains only one middlemen level, either an independent distributor or retailer, who in turn sells the drug products to end-users.

Answer 17

Channel 3

Question 18

Contains two middlemen level, namely the wholesaler and retailer drugstore outlets who in turn sell to the end-users.

Answer 18

Channel 4

Question 19

Contains three middlemen level, reflecting jobbers who sell to the smaller retailers who generally are not served by the large wholesaler drugstores.

Answer 19

Channel 5

Question 20

Channels 2 and 4 contain how many middlemen?

Answer 20

2

Question 21

Channel 3 contains how many middlemen?

Answer 21

1

Question 22

Channel 3 contains how many middlemen?

Answer 22

1

Question 23

Channel 5 contains how many middlemen?

Answer 23

3

Question 24

Channel 1 contains how many middlemen?

Answer 24

None (0)

Question 25

Channels of Distribution (Middlemen)

Answer 25

1. Wholesaler 2. Retailers 3. Jobbers 4. Manufacturer’s Representatives 5. Manufacturers Branches and Franchises 6. Distributors and Dealers 7. Dispensing Physician 8.,Department of Health 9. Industrial Clinics NGO

Question 26

Three strategies:

Answer 26

1. Intensive Distribution 2. Exclusive Distribution 3. Selective Distribution

Question 27

where drug companies stock up their product lines in as many sales outlet as possible, in both the traditional and non-traditional market

Answer 27

Intensive Distribution

Question 28

where the drug manufacturer requires the sales outlets such as hospitals and industrial clinics not to carry competing lines in exchange for higher discounts, promotion support and other service amenities

Answer 28

Exclusive Distribution

Question 29

where the drug manufacturer does not have to spread its efforts over many sales outlets in order to develop long-lasting working relationships fast. Many small and medium-sized drug companies prefer selective middlemen.

Answer 29

Selective Distribution

Question 30

In this channel, the manufacturer directly provides the product to the consumer.

Answer 30

Direct

Question 31

In this instance, the business may own all elements of its distribution channel or sell through a specific retail location.

Answer 31

Direct

Question 32

In this channel, a company will use an intermediary to sell a product to the consumer.

Answer 32

Indirect

Question 33

The company may sell to a wholesaler who further distributes to retail outlets.

Answer 33

Indirect

Question 34

This channel may become necessary for large producers who sell through hundreds of small retailers.

Answer 34

Indirect

Question 35

ways to sell directly to the consumer

Answer 35

Internet sales and one-on-one meetings

Question 36

In this type of channel, a company may use a combination of direct and indirect selling.

Answer 36

Dual Distribution

Question 37

The product may be sold directly to a consumer, while in other cases it may be sold through intermediaries

Answer 37

Dual Distribution

Question 38

This type of channel may help reach more consumers but there may be the danger of channel conflict.

Answer 38

Dual Distribution

Question 39

most non tradition channel allows for the consumer to send a product to the producer

Answer 39

Reverse Channels

Question 40

An example of this is when a consumer recycles and makes money from this activity.

Answer 40

Reverse Channels

Question 41

Possible channel drawbacks and conflicts

Answer 41

◉ Lost Revenue ◉ Lost Communication Control ◉ Lost Product Importance

Question 42

middlemen who play a crucial role in the distribution process

Answer 42

Distribution channel intermediaries

Question 43

There are four main types of intermediaries

Answer 43

Agents, Wholesalers, Distributors, Retailers

Question 44

an independent entity who acts as an extension of the producer by representing them to the user

Answer 44

Agent

Question 45

never actually gains ownership of the product and usually make money from commissions and fees paid for their services

Answer 45

Agent

Question 46

are also independent entities, but they actually purchase goods from a producer in bulk and store them in warehouses

Answer 46

Wholesalers

Question 47

may have a close relationship with the producer

Answer 47

Distributor

Question 48

only carry products from a single brand or company

Answer 48

Distributors

Question 49

carry a variety of competition brands and product types

Answer 49

Wholesalers

Question 50

stock the goods and sell them to the ultimate end user at a profit

Answer 50

Retailers

Question 51

Drug companies, when selecting channel members, strongly consider the ff:

Answer 51

1. Profile of middlemen 2. Product lines carried 3. Overall reputation and image of drug company 4. Track Record 5. Future growth potential 6. Store’s customers and locations

Question 52

In many ways, drug companies provide monetary and non-monetary incentive rewards such as:

Answer 52

1. Product deals 2. Higher discounts 3. Liberal credit terms 4. Display allowances 5. Cooperative advertising allowances 6. Sales promo contests 7. Pin money and rebates 8. Priority in stock deliveries and allocation of new products 9. Sales training 10. Free travel and hotel accommodations 11. Personalized services

Question 53

Physical Distribution System

Answer 53

-Order Processing -Warehousing -Inventory -Transportation

Question 54

receive, identify, and sort merchandise such as drugs, cosmetics, skin care lines, and toiletries

Answer 54

Warehouses

Question 55

owned and operated by the company which stores and distributes their own drug products

Answer 55

Private Warehouses

Question 56

provide storage and related physical distribution services to any interested individual or firm on a rental basis

Answer 56

Public Warehouses

Question 57

In the former, imported or taxable merchandise is stored and can be released for sale after the appropriate taxes are paid.

Answer 57

Bonded Warehousing

Question 58

Mortgage arrangement in which a lender secures its loan with lien on items stored in a warehouse. Access to these items is controlled by the lender who releases goods as they are paid for by the borrower.

Answer 58

Field Warehousing

Question 59

Two major concerns

Answer 59

○ When to order ○ How much to order

Question 60

There are four aspects of Inventory Management

Answer 60

1. Stock turnovers 2. When to order 3. How much to order 4. Warehousing

Question 61

The balance between sales and inventory on hand.

Answer 61

Stock turnovers

Question 62

period from the date a sales order is placed until the date goods are ready for sales

Answer 62

Order Lead Time

Question 63

average sales in units per day

Answer 63

Usage rates

Question 64

extra merchandise kept on hand to protect against out of stock

Answer 64

Safety stocks

Question 65

(Order Lead Time x usage rate) + Safety stock

Answer 65

REORDER POINT

Question 66

Four transportation Modes

Answer 66

○ Railroads ○ Motor Carries ○ Waterways ○ Airways

Question 67

It is a very vital element of the total marketing mix that ensures the adequate availability and visibility of the right products in the right target market.

Answer 67

Place