Question 1

Bentley is a luxury automobile car.The price range is between $200,000 and $400,00 CAN.What distribution intensity Bentley is likely to use?

Accepted Answer

Bentley is a luxury automobile brand that targets a niche market of wealthy individuals. Therefore, they are likely to use exclusive distribution, which limits the number of dealerships and ensures a high level of control over the brand image and customer experience.

Question 2

Which of the following will strengthen the chances of direct distribution?

Accepted Answer

Reduced shelf space in outlets will make it difficult for the company to rely on traditional retail channels and thus, increase the likelihood of direct distribution.

Question 3

Which of the following tools is commonly used in a pull strategy?

Accepted Answer

Print advertising is commonly used in a pull strategy to create consumer demand for a product, encouraging customers to seek out the product in stores.

Question 4

The number of channel members to use at each level of the supply chain is called:

Accepted Answer

Distribution intensity refers to the number of intermediaries or channel members a manufacturer or producer decides to use to distribute its products at each level of the supply chain. It can range from intensive, selective, to exclusive distribution.

Question 5

Fine Computers Inc.is a manufacturer of personal computers and computer parts.The company sells all its products by allowing customers to select specific products they want and place orders online.This distribution system is an example of which type of distribution?

Accepted Answer

The given distribution system is an example of direct distribution, where the company sells its products directly to customers through an online ordering system without involving any intermediaries or middlemen.

Question 6

Which of the following distribution strategies grants rights to sell to one or very few retail customers so that no other store can sell a particular brand?

Accepted Answer

Exclusive distribution grants rights to sell to one or very few retail customers so that no other store can sell a particular brand. The other options refer to different distribution strategies. Intensive distribution involves making a product available in as many retail outlets as possible, Selective distribution involves limiting the number of retail outlets that can sell a particular brand, Extensive Distribution involves offering products in multiple countries or regions, and Geographical distribution involves dividing a market into geographical areas and selling products only in those areas.

Question 7

Which of the following entities is NOT a marketing intermediary?

Accepted Answer

A marketing intermediary is a middleman or company that helps to distribute a product from the manufacturer to the end consumer. Wholesalers, retailers, distributors, and franchisees all serve as intermediaries in some way. However, the manufacturer is the original producer of the product and does not typically serve as an intermediary.

Question 8

Which of the following is an example of using a pull strategy?

Accepted Answer

Using mass media advertisements is an example of a pull strategy. This is because the company is creating demand for its products through advertising, which encourages consumers to seek out the product from retailers.

Question 9

Sodo Cola is a leading manufacturer of soda.The firm believes in making the products visible and continually attempts to place its products in as many outlets as possible.In the context of distribution intensity, what type of distribution strategy is the firm using?

Accepted Answer

The firm is using an intensive distribution strategy as it attempts to place its products in as many outlets as possible. This indicates a high degree of distribution intensity and coverage.

Question 10

Which of the following actions of a manufacturer is most likely to increase distribution intensity?

Accepted Answer

Increasing the number of outlets means increasing the number of intermediaries that carry the manufacturer's products. This will result in higher distribution intensity. Storing lesser inventory in warehouses (A), introducing new products (B), introducing a new product line (D), and reducing the number of intermediaries (E) may not necessarily increase distribution intensity.

Question 11

Mystic Gifts is a manufacturer of gift articles.The company sells its products to businesses and individual consumers.The company sells directly to most of its industrial buyers by using company salespeople and sells to individual consumers through third-party retail outlets.The company also has an Internet shop to sell gifts.What type of distribution strategy has Mystic Gifts adapted?

Accepted Answer

Mystic Gifts has adapted a multichannel distribution strategy by selling its products through its own salespeople, third-party retail outlets, and an internet shop. This allows the company to reach a wider audience and cater to the needs and preferences of different types of customers.

Question 12

Direct distribution channels allow manufacturers to:

Accepted Answer

Direct distribution channels allow manufacturers to bypass intermediaries such as wholesalers and retailers and sell their products directly to consumers. This can provide manufacturers with greater control over their brand image and pricing, as well as the ability to gather customer feedback and data.

Question 13

With a push strategy, a manufacturer focuses its promotional efforts on:

Accepted Answer

A push strategy is focused on convincing channel members to carry the manufacturer's product. This is done through various promotional efforts, including advertising and sales promotions, aimed at convincing wholesalers, distributors, and retailers to stock and sell the product to end consumers. The manufacturer may offer special incentives or discounts to these intermediaries to encourage them to carry the product.

Question 14

Shopping product manufacturers are more likely to adopt which distribution intensity?

Accepted Answer

Shopping products are typically distributed through selective distribution, where manufacturers sell their products through a limited number of intermediaries in a geographical area. This allows for a balance between widespread availability and maintaining a level of exclusivity, encouraging comparison shopping among consumers.

Question 15

Delight Supermarkets is a retail company that sells the products of IFS Appliances in Canada.IFS Appliances do not have any other retail partners in Canada.What type of distribution strategy is this?

Accepted Answer

This is an example of an exclusive distribution strategy. IFS Appliances only sells through Delight Supermarkets and does not have any other retail partners in Canada.

Question 16

Which of the following strategies is designed to get products into as many outlets as possible?

Accepted Answer

Intensive distribution is a strategy designed to get products into as many outlets as possible. This strategy focuses on placing the product in as many stores as possible, including smaller retail locations and convenience stores. This increases the product's availability and accessibility to consumers, which can lead to an increase in sales.

Question 17

With a pull strategy, a manufacturer focuses its promotional efforts on:

Accepted Answer

With a pull strategy, the manufacturer focuses on building demand for its products by targeting and appealing directly to consumers. The goal is to create consumer demand, which will then pull the product through the supply chain and encourage retailers to stock and promote the product.

Question 18

Electrode is a manufacturer of commercial washing machines.The firm uses personal selling to sell its products to various channel members who then distribute the product to consumers.What type of strategy is the firm using?

Accepted Answer

The firm is using a push distribution strategy, which involves personal selling to channel members who then distribute the product to consumers. This is a common approach in business-to-business marketing, where companies use personal selling to convince wholesalers, retailers, and other intermediaries to carry and promote their products.

Question 19

Which of the following tools is commonly used in a push strategy?

Accepted Answer

Personal selling is commonly used in a push strategy as it involves direct interaction with potential buyers to encourage them to purchase a product.

Question 20

The logistical function performed by intermediaries that involves maintaining inventory and protecting goods of manufacturers is called:

Accepted Answer

Risk taking involves maintaining inventory and protecting goods, as intermediaries assume the risk of holding stock that may not sell.

Quiz 12: Distribution Channels