74 Questions
What is the main benefit of sales promotion?
Increasing sales
Which of the following is an example of a trade sales promotion method?
Rebates to resellers
What is a key advantage of personal selling over impersonal promotion methods?
Tailored approach
What is the primary aim of trade sales promotions?
Attracting business purchasers
Which type of promotion requires the full dedication of a salesperson?
Personal selling
Why are salespeople considered crucial to the customer's experience?
To determine consumer purchases
What is a disadvantage of advertising on television (Free to Air)?
High cost per person
What is the benefit of sponsorship according to the text?
Encourages genuine customers
What is the flow of chain between producers and consumers called?
Distribution channel
Which media type offers the advantage of easily updated content and no competition for messages?
Internet: Brand or product website
Which type of distribution involves marketing intermediaries selling indirectly to consumers?
Indirect organisational distribution
What is a common disadvantage of direct mail advertising?
Expensive and often discarded
What is a characteristic of direct distribution mentioned in the text?
Manufacturer sells directly to consumer
Which media type typically has a short life span and is easy to ignore?
Newspaper: Community weekly
What is a common challenge associated with outdoor media advertising?
Visual complaints and pollution
Which organization uses three types of intermediaries according to the text?
Apple
What is the overarching trend prompting customers to assess the overall activities of a marketed organization beyond just a single promotional message?
Social and environmental awareness
What is a key role of the franchisor in a franchise agreement?
Sets standards and rules for the franchisee to follow
What distinguishes a merchant wholesaler from a manufacturer's wholesaler?
Merchant wholesalers are not owned by the producer
In a franchise agreement, what does the franchisee provide?
Supplies labor and capital
What is one of the major functions of wholesalers in the distribution chain?
Providing specialist services more efficiently than producers can
What characterizes retailers in the distribution chain?
Selling products directly to consumers
How do manufacturer’s wholesalers differ from merchant wholesalers?
They are owned by producers
What is the main purpose of relationship management in supply chain distribution channels?
Maximize the success of distribution channels and partnerships
What does horizontal integration involve in the context of supply chain management?
Combining organizations at the same level under one management structure
Which company example best illustrates vertical integration in the distribution channel?
Apple, which develops software, manufactures devices, and has its own retail stores
What characterizes a franchising business model in distribution channel partnerships?
Granting rights to use main business elements to individuals or groups through a license
Why is it important for channel members to manage relationships effectively in distribution channels?
To maximize the success of distribution channels and partnerships
What is the key difference between horizontal integration and vertical integration in supply chain management?
Horizontal integration involves combining organizations at the same level, while vertical integration combines different stages of the channel
What is the main goal of order processing in physical distribution?
Minimize cost and maximize satisfaction
What is the primary aim of inventory management in physical distribution?
Minimize holding and fit demand
In physical distribution, what is the function of a distribution center compared to a traditional warehouse?
Focused on moving rather than storing goods
What is one of the key modes of transportation mentioned in the text for moving products?
Water
Who is responsible for ensuring the physical inputs needed to deliver services are available?
Service businesses
What is the overarching concept that encompasses activities like order processing, inventory management, and transportation in physical distribution?
Physical distribution
What is the primary characteristic of an exclusive distribution strategy?
Gives the impression of exclusivity
In the context of distribution, what is a key advantage of selective distribution?
Gives the impression of prestige
Which type of distribution is preferred when the goal is high sales targets with low margins?
Intensive distribution
What characterizes a vertical marketing system (VMS)?
Distributes products through a single intermediary
In a franchise agreement, what does the franchisor typically provide?
Brand name and business model
What is a key difference between horizontal integration and vertical integration in supply chain management?
Vertical integration involves merging with different companies at different levels.
What is the main purpose of vertical integration in the distribution channel?
To combine different stages of the distribution channel
In a franchising business model, what does the franchisor provide?
The right to use the main elements of the business model through a license
What distinguishes a manufacturer's wholesaler from a merchant wholesaler?
Manufacturer's wholesaler focuses on selling goods they produce, while merchant wholesaler deals with various product lines.
What is the major function of wholesalers in the distribution chain?
Breaking down bulk quantities of goods and selling smaller quantities to retailers
Which scenario best represents a vertical marketing system?
An organization combines different stages of the distribution channel.
What is a common misconception about vertical integration in supply chain management?
It involves combining organizations at different levels under one management structure.
What is the primary function of wholesalers in a distribution chain?
Facilitate the flow of products between producers and consumers
What distinguishes an industrial distributor from a typical wholesaler?
Acts as an intermediary between manufacturers and organizational buyers
In a franchise agreement, what role does the franchisor typically play?
Provides the brand, business model, and support to franchisees
What differentiates horizontal integration from vertical integration in supply chain management?
Horizontal integration involves merging with competitors, while vertical integration involves acquiring suppliers or distributors
What is a key advantage of vertical marketing systems in distribution channels?
More control over product pricing
Which of the following best describes how vertical integration affects a company's supply chain?
Streamlines operations by owning different stages of the supply chain
What is one of the key roles of the franchisor in a franchise agreement?
Stipulating standards and rules for the franchisee to follow
In the context of wholesaling, what is a characteristic of a merchant wholesaler?
Primarily engaged in resale
What distinguishes manufacturer's wholesalers from merchant wholesalers?
Owned by the producer
What is a major function of wholesalers in the distribution chain?
Acting as a connection between producers and retailers
Which party pays a franchisor a fee or percentage of sales in a franchise agreement?
Franchisee
What is a characteristic of manufacturer’s wholesalers compared to merchant wholesalers?
Owned by the producer
What is a key characteristic of a merchant wholesaler in the distribution chain?
Acts as a connection between producers and retailers
In a vertical marketing system, what is a major benefit that wholesalers offer?
Offering services more efficiently than producers
How do manufacturer's wholesalers differ from merchant wholesalers?
Owned by the producer
What is a primary function of retailers in the distribution chain?
Selling products directly to the ultimate consumer
In a franchise agreement, what role does the franchisor typically play?
Setting standards and rules for the franchisee
What is a common characteristic of horizontal integration in supply chain management?
Involves combining companies at different stages of the same supply chain
Which of the following accurately describes vertical integration in the context of distribution channels?
Aims to strengthen control over different stages of the production or distribution process
Which statement best describes a key benefit of vertical marketing systems (VMS) in distribution channels?
Improve communication and coordination in the channel
In a franchising business model, what role is typically played by the franchisee?
Owning and operating a unit under the franchisor's brand
What differentiates a manufacturer's wholesaler from a merchant wholesaler in distribution channels?
The relationship with the producers of the goods
What distinguishes horizontal integration from vertical integration in the context of distribution?
Horizontal integration involves a company merging with competitors, while vertical integration involves a company expanding its control over different stages of the supply chain.
In the context of distribution channels, what is a main function of wholesalers?
Providing credit facilities to retailers.
What is a characteristic of a franchise agreement between a franchisor and a franchisee?
Franchisors provide ongoing support and guidance to franchisees in advertising and promotions.
What distinguishes a manufacturer's wholesaler from a merchant wholesaler in distribution channels?
Manufacturer's wholesalers represent only one specific product line, while merchant wholesalers offer a variety of products.
What is a key advantage of vertical marketing systems (VMS) in distribution channels?
Enhanced control and coordination throughout the distribution channel resulting in improved efficiency.
Explore the advantages and disadvantages of different media types including television (free to air and pay TV) and radio (AM, FM, digital, podcasts, streaming). Learn about reaching mass audiences, production costs, customization possibilities, and audience attention levels.
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