Topic 10 - Distribution

Question 1

What is a pull strategy?

Answer 1

• The want for the consumer demand to pull the product through the distribution channel

Question 2

Whats a push strategy?

Answer 2

• Here the efforts are aimed at the retailers and wholesalers
• The hope is that through building relationships with the buyers, lots of B2B products can be pushed through to gain greater shelf life

Question 3

What is a supply chain?

Answer 3

• A network of organisations that are involved in different processes and activities that produce value in the form of products and services

Question 4

What are marketing channels?

Answer 4

• Organised systems of marketing institutions through which products, resources, information etc flow from production to final consumer

Question 5

What is physical distribution?

Answer 5

• This co-ordinates the flow of information and products form firm to firm to ensure products are in the right place, in right quantities

Question 6

What are the three channel structures?

Answer 6

1) Intensive
2) Selective
3) Exclusive

Question 7

What is an intensive channel?

Answer 7

• This is where the product/service is placed in as many outlets as possible and no intermediary is stopped from stocking the product
• Most popular with FMCGS

Question 8

What is a selective channel?

Answer 8

• This takes a more selective approach as it only sells its product in small number of chosen outlets
• Often found with products that consumers are more willing to search for

Question 9

What is a exclusive channel?

Answer 9

• This is when only one outlet sells the product

Question 10

What are the three types of channel lengths?

Answer 10

1) Direct supply
2) Indirect
3) Hybrid

Question 11

What is direct supply?

Answer 11

• This is producer to consumer where they deal directly with each other e.g pick your own veg

Question 12

What is indirect supply?

Answer 12

Producer- retailer- consumer

Question 13

What is a hybrid supply channel?

Answer 13

Producer- Wholesaler-retailer-consumer- wholesaler

- This is an advantage for smaller businesses as it allows them to have a wider range of products

Question 14

What is a convenience good, shopping good and a speciality good?

Answer 14

1) Convenience - E.g staples they are impulse buys
2) Shopping goods - E.g furniture where people are willing to go out there way
3) Speciality goods - Unique goods such as Gucci

Question 15

Who is an ‘agent’ in the supply chain?

Answer 15

They are the middle man in the supply chain they cant resell at a higher price

Question 16

Who is a merchant in the supply chain?

Answer 16

They buy and sell on own account

Question 17

Who is a licensee?

Answer 17

• This is a contractual agreement whereby one company is given the right to use something owned by another company e.g Disney

Question 18

What is direct marketing?

Answer 18

Marketing throuhg the TV, the web etc

Question 19

Who is a franchise?

Answer 19

authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company’s products.