WEEK 3

Question 1

is a set of decisions that get you to a specific
destination. It’s the overarching approach you adopt
to achieve the set of long-term goals you’ve chosen.

Answer 1

Strategy

Question 2

The difference between strategy and tactics can be summed
up as

Answer 2

“strategy determines where you want to go”
and “tactics determine how you’ll get there”.

Question 3

is required to set the overarching direction and
destination of the organization,

Answer 3

Strategy

Question 4

are required to define the concrete actions you’ll
take to reach your destination.

Answer 4

Tactics

Question 5

is a road map that gives your business

Answer 5

Franchising Strategy

Question 6

8 tips for local area franchise marketing that gets results

Answer 6

1. Know your local area in detail.
2. Build a profile of your target audience.
3. Do a competitor analysis.
4. Get social.
5. Maximize local PR opportunities.
6. Be aware of local history and points of interest.
7. Connect with clubs, schools and community groups.
8. Look for cross-promotional opportunities.

Question 7

is a long-term partnership and companies who wish to be successful must recognize the true nature of the
relationship, and the responsibilities on each partner.

Answer 7

Franchising

Question 8

refers to a coordinated
approach where the producer, wholesaler, and retailer
of a product or service work together as a unified group
to meet consumer needs and achieve business goals.

Answer 8

Vertical Marketing System

Question 9

THREE COMPONENTS OF VERTICAL MARKETING SYSTEM

Answer 9

Producer
Wholesaler
Retailer

Question 10

the manufacturer who physically makes a product

Answer 10

Producer

Question 11

purchases products from the producer and manages the distribution to retailers.

Answer 11

Wholesaler

Question 12

in turn mark up the price and sell
products to consumers

Answer 12

Retailers

Question 13

TYPES OF VERTICAL MARKETING SYSTEM

Answer 13

Corporate Vertical Marketing System
Administered Vertical Marketing System
Contractual Vertical Marketing System

Question 14

All stages within the production and distribution of a
product are owned by one organization.

Answer 14

Corporate Vertical Marketing System

Question 15

The dominance of either the producer or the distributor exists. There is no formal contract, but their behavior is influenced by the size and power of the owner.

Answer 15

Administered Vertical Marketing System

Question 16

the independent owners at each level are under contract with the higher level. The
_____________ is like endorsing a particular product in their shop having any other products as well.

Answer 16

Contractual Vertical Marketing System

Question 17

Key Reasons Behind the Importance of
Vertical Marketing Systems

Answer 17

1. Economies of Scale
2. Profit margins increase
3. Brand image expansion
4. Enhanced customer base and satisfaction
5. Tracking becomes easier.
6. Less fuel consumption

Question 18

making things in bulk could always be a profitable thing. It could be economical for the clubbed entity as all the middle-men costs involved are now removed. There is only one chain.

Answer 18

Economies of Scale

Question 19

when three independent workers club into one, the _________ which was earlier at the cost of one another shrinks
to the firm as a whole.

Answer 19

Profit margins increase

Question 20

It creates a feeling of security, and authenticity and builds a sense of trust among the customers.

Answer 20

Brand image expansion

Question 21

Every customer wants to buy at the cheapest rate possible. Even they are smarter to know that buying from the clubbed entities could cost them less.

Answer 21

Enhanced customer base and satisfaction

Question 22

when there is a single system working it is easy to keep things organized. This, in turn, makes tracking easy for the main owner. This also leads to settling disputes if any.

Answer 22

Tracking becomes easier

Question 23

this is so that the customers will contact the retailers about the product and since the information would be accurate, they will visit the store only after the availability of the product.

Answer 23

Less fuel consumption

Question 24

firms to acquire smaller and middle-level firms into wholesaling or retailing. This enables them to keep track and make things simpler. It also chucks away the competition found at the lower channels of the market.

Answer 24

Large firms

Question 25

there are those intermediary firms that are neither too big nor too small. They may have efficient manpower who adorns excellent communication skills.

Answer 25

Firms with efficient manpower

Question 26

Advantages of Vertical Marketing System

Answer 26

1. An administered system with efficient control.
2. Consistent marketing message
3. Combining resources.
4. Competitive pricing

Question 27

Disadvantages of Vertical Marketing Systems

Answer 27

1. Bad firms.
2. Focus hazed out.
3. Personality issues.