Questions and Answers
A direct channel of distribution includes both wholesalers and retailers.
False
A retailer buys and sells merchandise.
True
Exclusive distribution makes use of all available outlets for a product.
False
Inventory holding costs are the costs of storing products until they are purchased or shipped to customers.
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Piggyback service is unique to air freight.
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Institutional advertising promotes specific brands of products.
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Advertising can be broadly classified into three groups: selective-demand, institutional, and primary-demand.
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A major disadvantage of magazines is their lack of timeliness.
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Radio advertising offers a high degree of selectivity.
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News releases are the least used type of publicity.
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Study Notes
Distribution Channels
- A direct channel of distribution does not include both wholesalers and retailers; it involves a direct link between manufacturers and consumers.
- Exclusive distribution utilizes a select number of outlets for a product rather than all available channels.
Retail and Inventory
- A retailer's primary function is to buy goods and sell them to consumers.
- Inventory holding costs encompass expenses related to storing products until purchase or shipment occurs.
Advertising Types
- Advertising can be categorized into three main types:
- Selective-demand advertising targets specific products.
- Institutional advertising focuses on enhancing the image of a company or organization.
- Primary-demand advertising aims to stimulate demand for a product category rather than a specific brand.
- Institutional advertising does not promote specific brands; instead, it emphasizes the overall brand or corporate identity.
Media Considerations
- Magazines have a significant drawback regarding timeliness, as they cannot quickly adapt to current events compared to other media.
- Radio advertising provides a high level of selectivity, allowing advertisers to target specific demographics effectively.
Publicity and Promotion
- News releases are not the least utilized type of publicity; instead, they play a crucial role in media relations and public outreach.
- Piggyback service is not exclusive to air freight; it integrates various transportation modes to enhance logistics efficiency.
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Description
Test your knowledge of distribution channels and inventory holding costs with this true/false quiz based on Chapter 13. This quiz will challenge your understanding of essential marketing concepts and help you prepare for further studies in the field.
