Week 9

Question 1

What is place (distribution)?

Answer 1

• Distribution (or place) means placing products in the hands of the ultimate consumer or organisation buyer

Question 2

What are distribution channels?

Answer 2

• Distribution channel (or marketing channel): the chain that exists between producers and consumers (or organisational buyers)

Question 3

Who are marketing intermediaries?

Answer 3

• Individuals or organisations that act in the distribution chain between the producer and end user

Question 4

What are the types of distributions based on market coverage?

Answer 4

• Intensive Distrbution → Distributes products via every suitable intermediary
• Exclusive Distribution → Distributes products through a single intermediary for any given geographic region
• Selective Distribution → Distributes through intermediaries chosen for some specific reason

Question 5

What are the types of distrbution based on the existence of intermediaries?

Answer 5

• Direct Distribution → Producers of goods or services deal directly with end-users
• Indirect Distribution → Producers rely on marketing intermediaries to help them get their offering to end users

Question 6

What is retailing?

Answer 6

• Any exchange in which the buyer is the ultimate consumer of the product

Question 7

What is wholesaling?

Answer 7

• Exchanges in which products are bought for resale, for use as inputs in other products, or for some other use in a business

Question 8

Distinguish between agents and brokers

Answer 8

• Agents → Marketing intermediaries engaged by buyers or sellers on an ongoing basis to represent them in negotiations with other parties in the marketing channel
• Brokers → Marketing intermediaries engaged by buyers of sellers on a short-term or on-off basis to represent them in negotiations with other parties in the marketing channel