Distribution Management and Planning
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Questions and Answers

What is a direct channel of distribution?

  • A method involving multiple intermediaries to the consumer.
  • The use of wholesalers and retailers to move goods.
  • The transfer of goods from manufacturer to consumer without middlemen. (correct)
  • A system relying on marketing specialists for distribution.

    • Who are typically considered middlemen in the distribution process?

  • Only retailers
  • Wholesalers, retailers, and marketing specialists (correct)
  • Manufacturers and consumers
  • Service providers and marketing specialists

    • Which of the following is NOT a type of distribution channel intensity?

  • Intensive distribution
  • Continuous distribution (correct)
  • Selective distribution
  • Exclusive distribution

    • What is the primary focus of physical distribution?

    <p>Transferring products from one location to another</p> Signup and view all the answers

    What distinguishes exclusive distribution from other types of distribution?

    <p>It has a limited number of middlemen in a geographic area.</p> Signup and view all the answers

    What is the primary product offered by regional centers?

    <p>Shopping goods</p> Signup and view all the answers

    Which of the following roles does not belong among marketing channel members?

    <p>Government Regulators</p> Signup and view all the answers

    Which distribution channel involves a company selling goods directly to the ultimate users?

    <p>Direct sale</p> Signup and view all the answers

    What is dual channel distribution primarily used for?

    <p>To appeal to different market segments.</p> Signup and view all the answers

    What type of goods do neighborhood centers predominantly sell?

    <p>Convenience goods and services</p> Signup and view all the answers

    In the context of distribution, what role do wholesalers primarily fulfill?

    <p>Serving as intermediaries between manufacturers and retailers.</p> Signup and view all the answers

    What is the purpose of scrambled merchandising?

    <p>To encourage customer loyalty through unrelated products</p> Signup and view all the answers

    Who employs manufacturers' representatives?

    <p>Producers wanting to extend their reach</p> Signup and view all the answers

    Which of the following is true regarding a wholesaler?

    <p>They sell to retailers or other agents for further distribution.</p> Signup and view all the answers

    What is a primary feature of community centers?

    <p>They include smaller stores catering to safety and service needs.</p> Signup and view all the answers

    What role do brokers play in the distribution process?

    <p>They buy from distributors and sell to retailers or end users.</p> Signup and view all the answers

    What is the primary focus of distribution management?

    <p>Managing the movement and coordination of supply and demand</p> Signup and view all the answers

    How does place distribution enhance marketing effectiveness?

    <p>By ensuring product availability in the right quantity, at the right time, and in the right place</p> Signup and view all the answers

    What role does distribution planning play in the transfer of goods and services?

    <p>It is a systematic decision-making process for physical transfer</p> Signup and view all the answers

    Which of the following is NOT a function of distribution planning?

    <p>Market segmentation</p> Signup and view all the answers

    Why is just-in-time delivery increasingly important in distribution?

    <p>It caters to the demand for timely availability of products</p> Signup and view all the answers

    Which of the following best describes a distribution channel?

    <p>A medium for making goods available to consumers</p> Signup and view all the answers

    How does inventory management contribute to distribution?

    <p>By maintaining stock to avoid shortages</p> Signup and view all the answers

    Which aspect of distribution management can be considered its 'heartbeat'?

    <p>Sales management</p> Signup and view all the answers

    What is the primary purpose of inventory control?

    <p>To provide sufficient supply of raw materials</p> Signup and view all the answers

    Which transportation form is most suitable for moving heavy and bulky items over long distances?

    <p>Railroads</p> Signup and view all the answers

    What is the role of containerization in transportation?

    <p>To safely load goods onto various transport vehicles</p> Signup and view all the answers

    Which of the following is considered the fastest form of transportation?

    <p>Airways</p> Signup and view all the answers

    What is a characteristic of common carriers in transportation?

    <p>They must transport goods from any firm unless certain rules are broken.</p> Signup and view all the answers

    What type of firms specialize in consolidating small shipments for delivery?

    <p>Freight forwarding firms</p> Signup and view all the answers

    Which transportation service is primarily responsible for governmental document delivery?

    <p>Government parcel post</p> Signup and view all the answers

    Which of the following accurately describes pipelines in transportation?

    <p>Reliable for transporting liquids, gases, and semi-liquids</p> Signup and view all the answers

    What is the primary purpose of inventory management?

    <p>To ensure a continuous flow of goods while aligning with sales demand</p> Signup and view all the answers

    Which type of carrier is responsible for providing transportation services based on individual agreements with specific shippers?

    <p>Contract Carriers</p> Signup and view all the answers

    What does the Just In Time (JIT) inventory system emphasize?

    <p>Frequent ordering of smaller quantities to meet immediate production needs</p> Signup and view all the answers

    What is the main difference between private and public warehouses?

    <p>Private warehouses are owned by the firms that use them, while public warehouses are available for rental</p> Signup and view all the answers

    What does Electronic Data Interchange (EDI) facilitate in inventory management?

    <p>Computer linkups between suppliers and manufacturers for timely stock monitoring</p> Signup and view all the answers

    What is one of the key objectives of the Quick Response (QR) inventory system?

    <p>To act immediately in accordance with the required units of materials</p> Signup and view all the answers

    What is a characteristic of private carriers?

    <p>They solely use their own facilities for shipping</p> Signup and view all the answers

    Which of the following best describes Exempt Carriers?

    <p>Carriers that are excused from legality but must meet safety requirements</p> Signup and view all the answers

    Study Notes

    Distribution Management

    • It is the management of the movement and coordination of supply and demand in creating time and place utility for goods.
    • It's about ensuring the right product, in the right quantity, at the right time, and at the right place.
    • This is crucial for international markets due to distance and transportation time.
    • It's an integral part of sales management - they are interconnected.

    Distribution Planning

    • A systematic decision-making process for the physical transfer of goods and services from manufacturer to final user.
    • It involves the following functions:
      • Transportation: How to transfer goods from the producer to the consumer.
      • Inventory Management: Keeping the product safe and maintaining stock levels to avoid shortages.
      • Customer Transactions: Following up with customers, gathering feedback, and ensuring satisfaction.

    Distribution Channel

    • A medium by which goods and services are made available to consumers.
    • It's composed of marketing intermediaries.
    • It's made up of people or organizations involved in distributing products, including manufacturers, service providers, wholesalers, retailers, marketing specialists, and consumers.

    Basic Types of Distribution Channels

    • Direct Channel Distribution: Goods are transferred directly from the manufacturer to the final user or customer, without the intervention of independent intermediaries.
    • Indirect Channel of Distribution: Goods are transferred from the manufacturer to independent intermediaries, and then to the customer.

    Intensity of Channel Coverage

    • Exclusive Distribution: A limited number of middlemen are used in a geographic area.
    • Selective Distribution: An organized moderate number of wholesalers or retailers are used.
    • Intensive Distribution: Many middlemen are used for widespread market coverage and channel acceptance.
    • Dual Channel Distribution: Uses a combination of distribution channels to appeal to different market segments.

    Physical Distribution

    • Includes:
      • Customer Service: Satisfying the customer to the maximum level.
      • Shipping: Transferring durable products from one location to another, usually a long distance.
      • Warehousing: Storing raw materials, semi-processed goods, and final products.
      • Inventory Control: Providing sufficient supply of raw materials at the right quantity, time, and quality.
      • Packaging: Making the product presentable, including its taste, color, size, weight, and shape.
      • Receiving Materials Handling: Properly managing materials for final production.

    Transportation

    • It refers to the organization's ability to transport available goods to the customer.
    • It helps in the proper distribution of products for customer satisfaction and continuous patronage.

    Transportation Forms

    • Railroads: Carrying heavy, bulky items, low value, over long distances.
    • Motor Carriers: Transporting small shipments over short distances, within a town, and between towns.
    • Waterways: Moving low-value but high bulk freight on barges, tankers, freighters, and intercoastal shipping.
    • Pipelines: Reliable continuous movement of liquids, gases, and semi-liquids.
    • Airways: Fastest, most expensive form for perishable and emergency goods.

    Transportation Services Companies

    • Government Parcel Post: Documents or goods sent under the custody of the local or national government for safe and timely delivery.
    • Containerization: Placing goods in sturdy containers that are loaded safely on trucks, ships, or planes for reduced damage and theft.
    • Freight Forwarding: Specialized firms that consolidate small shipments from several companies and organizations. They pick up, arrange, and ensure delivery at the buyer's door.

    Categories of Transportation Firms

    • Common Carriers: Transport goods for anyone, and cannot refuse shipments unless the carrier's rules are broken.
    • Contract Carriers: Provide transportation services for one or a few specific shippers and goods based on individual agreement.
    • Exempt Carriers: Excused from regulations; must comply with safety requirements. Most agricultural goods are exempt.
    • Private Carriers: Shippers use their own facilities, subject to safety rules and regulations from government.

    Inventory Management

    • Objective:
      • Provide a continuous flow of goods.
      • Match inventory levels closely with sales demand.
      • Meet required profit margins.

    Inventory Management Concepts

    • Just in Time (JIT): Ordering more frequently and in lower quantities to reduce inventory held on hand. This requires better planning and forecasting.
    • Quick Response (QR) Inventory System: Immediately responding to required materials needed in production.
    • Electronic Data Interchange (EDI): Computer linkups between suppliers and manufacturers, increasing sales through monitoring of available stocks.

    Warehousing

    • Physical facilities for storage of goods, maintaining supply for efficient delivery.

    Warehousing Types

    • Private warehouses: Owned, managed, and operated by firms that store and distribute their own products.
    • Public warehouses: Provide storage and related physical distribution services to any firm or individual on a rental basis.

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    Related Documents

    Introduction to Distribution Management PDF

    Description

    This quiz covers essential concepts of distribution management, including the coordination of supply and demand, distribution planning, and the various distribution channels involved in getting products to consumers. Understanding these principles is vital for effective sales management, especially in international markets.

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