DM CHAPTER 1

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What is the main function of a distribution channel according to the American Marketing Association?

Financing the transactions and performing after sales service

Motivating buyers and negotiating fair bargains (correct)

Sharing information between the consumer and the company only

Acting as a midway point between the company and its distributors

What distinguishes C&FAs from CSAs in the distribution channel system?

C&FAs store products in a central location, while CSAs remit value of goods sold to the company (correct)

C&FAs act as transporters, while CSAs act as guarantors

CSAs collect products from company plants, while C&FAs sell directly to the market

CSAs negotiate with distributors, while C&FAs negotiate with dealers

Which type of intermediary is required to invest in the product by buying it from the company?

Dealers (correct)

Stockists

Guarantors

Agents

What is a key role of delivery channels in the distribution system?

Only meant for physical transactions Signup and view all the answers

What is the main function of Service Channels in a distribution system?

Perform after-sales service Signup and view all the answers

What do C&FAs do as part of their role in the distribution channel system?

Collect products from company plants and store them for distribution Signup and view all the answers

What is the primary role of intermediaries in distribution channels?

Redistribute products to reach consumers Signup and view all the answers

According to Kotler and Armstrong, what is the purpose of a distribution channel?

To make a product or service available to customers Signup and view all the answers

What is the main objective of distribution management?

To make products available at the right place, right time, and right quantities Signup and view all the answers

In distribution channels, what is the role of marketing channels?

Enhance communication between producers and customers Signup and view all the answers

Why do intermediaries play a significant role in distribution channels?

To facilitate product exchange between producer and consumer Signup and view all the answers

What is the purpose of a distribution channel in marketing?

To make products available for consumption by customers Signup and view all the answers

What is the main function of intermediaries or channel members according to the text?

To accumulate the right kind of goods to meet consumer needs Signup and view all the answers

Which intermediary type is described as setting up shops in the market place to cater to consumers' needs?

Retailers Signup and view all the answers

What do wholesalers do with regards to product variety according to the text?

They buy a large variety of goods to compare costs and make recommendations Signup and view all the answers

How do retailers minimize distribution costs according to the text?

By working with a small number of products Signup and view all the answers

What distinguishes wholesalers' customers from retailers' customers according to the text?

Wholesalers' customers are not on contract with any company Signup and view all the answers

What do intermediaries negotiate with distributors according to the text?

About 15 days credit for their customers Signup and view all the answers