Marketing and Distribution Fundamentals
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Questions and Answers

Physical distribution is a marketing function that facilitates the movement of goods from the manufacturer to the location of the ultimate users.

True

Order placement refers to the time that elapses from the time the customer develops the order until the order is received by the seller.

True

Internal order processing refers to the time required to process the customer's order until it is ready for shipment.

True

Order preparation refers to all activities relating to the picking and packaging of individual customer orders.

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

Order shipment refers to the time the order is placed upon a transport facility until the goods ordered are unloaded and received by the customer.

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

Durable goods are tangible products which normally survive many uses.

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

Convenience goods are those which are purchased with a minimum of effort.

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

Shopping goods are those that are bought only after an effort to compare with other goods is made.

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

Specialty goods are those that the consumers seek to buy and they are not willing or they are not able to accept substitute.

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

Unsought goods are those that are not yet wanted by or are still unknown to the consumer.

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

Logistics is the strategic managing of the efficient flow and storage of raw materials, in-process inventory and finished goods from the point of origin to point of consumption.

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

Distribution channel in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users, it has at its centre transportation and logistical consideration.

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

Discriminatory pricing refers to modifications of the basic price to accommodate differences in customer, product, and locations. The company sells its products or service at two or more prices.

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

Cash rebates these are offered to customers to encourage them to make purchases within a specified time period.

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

Allowance these are reductions from list prices to buyers for performing some activity.

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

Cash discounts are reduction in prices to encourage buyers to pay their bills quickly. An example is the one-hundred-peso discount offered to monthly instalment dues of a customer if he pays on or before due dates.

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

Marketing channels may be defined as a set of independent organizations and individuals that facilitate the movement and transfer of ownership of commodities from the producers to the ultimate users.

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

Personal selling is a promotional method in which the salesperson uses skills and techniques for building personal relationships with another party (those involved in a purchased decision) that result in both parties obtaining value.

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

Sales promotion is the process of persuading a possible customer to purchase the product. Sales promotion is designed to be used as short-term tactic to boost sales, it is appropriate as a technique of building long-term customer loyalty.

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

Product is anything offered for sale by the firm to buyers to satisfy their wants and needs.

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

Services are intangible goods like activities, benefits or satisfaction which are offered for sale.

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

Pricing may be defined as those activities involved in the determination of the price at which products that will be offered for sale considering the various objectives of the firm.

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

Skimming price strategy a company initially sets a high price for the product and at the same time promotes it heavily via advertising and sales promotion, eventually the firm lowers the price to capture a larger share of market.

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

Wholesaling refers to all activities involved in selling goods and services to those who intend to resell or use the same for producing goods or services.

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

Retailing refers to the business activity of selling goods or services to the final consumer.

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

Penetration pricing company prices its products low in order to penetrate its target as quickly as possible and thereby gain market control

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

Loss-leader pricing this refers to the practice of setting low prices on selected products which will result in the generation of less profits, but with the objective of increasing the sales volume of other products sold the company.

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

Intensive distribution is a strategy that requires the firm to sell its products through every available outlet in a market where a consumer might reasonably try to find them.

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

Price lining pricing this method refers to the practice of selling merchandise at a limited number of predetermined price levels, the different price levels are intended to represent various levels of quality.

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

Geographical pricing refers to pricing decisions related to product intended for customer in different locations.

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

Physical distribution is a marketing function that facilitates the movement of goods from the manufacturer to the location of the ultimate ______.

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

Order placement refers to the time that elapses from the time the customer develops the order until the order is received by the ______.

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

Internal order processing refers to the time required to process the customer's order until it is ready for ______.

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

Order preparation involves all activities relating to the picking and ______ of individual customer orders.

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

Order shipment refers to the time the order is placed upon a transport facility until the goods ordered are unloaded and received by the ______.

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

Durable goods are tangible products which normally ______ many uses.

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

Convenience goods are those which are purchased with a minimum of ______.

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

Shopping goods are those that are bought only after an effort to ______ with other goods is made.

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

CASH DISCOUNT refers to a reduction in ______ to encourage buyers to pay their bills quickly.

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

SKIMMING PRICE is a strategy where a company initially sets a high price for the product and promotes it heavily via ______ and sales promotion.

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

MARKETING CHANNELS can be defined as a set of interdependent organizations that facilitate the movement and transfer of ownership of ______ from producers to users.

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

PENETRATION PRICING involves pricing products ______ to quickly gain market control.

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

WHOLESALING refers to all activities involved in selling goods and services to those who intend to ______ or use the same for producing goods.

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

LOSS-LEADER PRICING is the practice of setting low prices on selected products to increase the ______ volume of other products sold by the company.

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

RETAILING is the business activity of selling goods or services to the final ______.

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

INTENSIVE DISTRIBUTION is a strategy that requires the firm to sell its products through every available ______ in a market.

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

____________ are those that are not yet wanted by or are still unknown to the consumer.

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

____________ refers to the strategic managing of the efficient flow and storage of raw materials, in-process inventory, and finished goods.

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

____________ is a promotional method in which the salesperson uses skills and techniques for building personal relationships.

<p>Personal selling</p> Signup and view all the answers

____________ are intangible goods like activities, benefits or satisfaction which are offered for sale.

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

____________ refers to the path or route through which goods and services travel to the final users.

<p>Distribution channel</p> Signup and view all the answers

____________ pricing refers to the practice of setting low prices on selected products to generate increased sales volume of other products.

<p>Loss-leader</p> Signup and view all the answers

____________ pricing may be defined as those activities involved in determining the price at which products will be offered for sale.

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

____________ goods are those that consumers seek to buy and are not willing or able to accept substitutes.

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

Signup and view all the answers

Study Notes

Product Life Cycle

  • Introduction stage: product launch
  • Growth stage: increasing sales
  • Maturity stage: stable sales
  • Decline stage: decreasing sales

Functions of Marketing Channels

  • Routinization of decisions: standardization of activities
  • Financing: providing financial resources
  • Pricing: setting prices
  • Communication: disseminating information
  • Assistance in promotional activities: supporting promotional efforts
  • Minimizing number of transactions: streamlining activities
  • Channel of communication: assisting with communication

Functions of Distribution Channels

  • Information provider: supplying market information
  • Price stability: maintaining consistent prices
  • Promotion: enhancing product visibility
  • Financing: providing funding
  • Help in production function: aiding in the production process
  • Matching demand and supply: aligning production with consumer needs
  • Pricing: establishing prices
  • Standardizing transactions: standardizing transactions
  • Matching buyers and sellers: facilitating deals between buyers and sellers

Forms of Transportation

  • Railroads
  • Trucks
  • Water vessels
  • Pipelines
  • Airplanes

Elements of Efficient Physical Distribution

  • Inventory planning and control
  • Transportation
  • Efficient flow and storage of materials, in-process inventory, and finished goods from origin to consumption.

True or False

  • Physical Distribution: facilitating movement of goods from manufacturer to consumer
  • Order Placement: time between order initiation and receipt by seller
  • Internal Order Processing: time to process order internally
  • Order Preparation: picking/packaging orders
  • Order Shipment: time goods are on transport until delivery
  • Durable Goods: products with long lifecycles
  • Convenience Goods: easily purchased items
  • Shopping Goods: items requiring comparison before purchase
  • Specialty Goods: unique goods with no substitutes
  • Unsought Goods: unexpected or unwanted goods

Personal Selling

  • Promotional method: building relationships with customers
  • Facilitates personal interaction between salesperson and customer

Sales Promotion

  • Process to persuade customers to purchase
  • Short-term tactic
  • Designed for sales boosts

Product

  • Anything offered for sale that meets wants/needs

Services

  • Intangible goods/activities/benefits

Pricing

  • Process of determining product prices
  • Considering firm objectives
  • Methods like skimming, penetration, and loss-leader pricing also exist

Skimming Price Strategy

  • Initial high price to maximize profits
  • Gradual price reduction

Penetration Pricing Strategy

  • Lower initial price to gain market share
  • Rapid market penetration
  • Used to attract customers quickly

Loss-Leader Pricing

  • Low prices to boost total sales of other items
  • Motivational for customers to buy other items

Intensive Distribution

  • Sells product through many retailers
  • Maximizes product visibility and accessibility to the customer

Price Lining Pricing

  • Selling products at different predetermined price levels
  • Represents different quality levels.

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FINALS REVIEWER (POM) PDF

Description

Test your knowledge on the key concepts of the product life cycle, functions of marketing channels, and the elements of physical distribution. This quiz covers various modes of transportation and their roles in efficient distribution. Get ready to challenge your understanding of marketing strategies and distribution methods.

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