13 Questions
What are the two components of distribution mentioned in the text?
Channel selection and logistics
In which type of distribution is the product sold everywhere, like Coca-cola in various places?
Intensive distribution
What is the main goal of logistics in distribution?
To arrange for the efficient movement of products
What is the purpose of channel selection in distribution?
To decide the path a product should take to reach the target consumer
What does selective distribution involve?
Selling the product in specific locations to specific consumers
What are the paths of ownership that goods follow as they pass from the producer to the consumer referred to as?
Distribution channels
What is the main reason for a company to opt for selective distribution?
To control the distribution of their product and avoid conflicts in positioning/brand image
What distinguishes exclusive distribution from selective distribution?
The manufacturer makes a deal with one or two retailers to exclusively sell the product in a particular area
What characterizes integrated distribution?
The manufacturer, distributor, or retailer owns both distribution outlets and manufacturing facilities for a product
What is an example of a product that would typically use exclusive distribution?
High fashion clothing
What is the legal obligation if a retailer orders a manufacturer’s product in a selective distribution system?
The manufacturer cannot refuse to sell the product to the store without a valid reason
What benefit does exclusive distribution provide to a manufacturer?
It allows the product to have a prestige image and enables the manufacturer to influence retail strategies
Which company exemplifies integrated distribution?
IKEA
Test your knowledge of distribution strategies and logistics with this quiz on channels of distribution. Learn about the components and success criteria for effective product distribution in businesses.
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