Distribution Management

Quiz

Name: __________________________________ Date: ___________

Course and Section: _______________________

I-Enumeration(25 points)

1. What are the four key challenges in effective multi-channel strategy

1. Finding the optimal multi-channel mix

2. Creating multi-channel synergies
3. Avoiding multi-channel conflicts
4. Gaining a sustainable competitive advantage via multi-channel strategy

2. What are the optimal multi-channel mix. Give at least four(4).

1. Internet-based online channels

2. Retail store channels
3. Mail order channels
4. Wholesale distributor channels
5. Sales representative channels
6. Call center channels
7. Company sales force channels
8. Vending machine channels
9. Company-owned retail channels

3. What are the flows in marketing channels?

1. Product Flow – Product flow refers to the actual physical movement of the product from the
manufacturer through all of the parties who take physical possession of the product, from its point of
production to final consumers.
2. Negotiation Flow – Negotiation flow represents the interplay of the buying and selling functions
associated with the transfer of title(right of ownership).
3. Ownership Flow – Ownership flow shows the movement of the title to the product as it is passed along
from the manufacturer to final consumers.
4. Information Flow – Shows all parties that participate in the exchange of information and the flow can
either be up or down.
5. Promotion Flow – refers to the flow of persuasive communication in the form of advertising, personal
selling, sales promotion and publicity.

4. What are the different types of channel structures

1. Two-level – Manufacturer to consumer

2. Three-level – Manufacturer to Retailer to Consumer
3. Four-level – Manufacturer to Wholesaler to Retailer to Consumer
4. Five-level – Manufacturer to Agent to Wholesaler to Retailer to Consumer

5.What are the common types of facilitating agencies. Give at least four(4).
1. Transportation agencies
2. Storage agencies
 3. Order processing agencies
4. Third party logistic providers
5. Advertising agencies
6. Financial agencies
7. Insurance companies
8. Marketing research

6.What are the five environmental variables

1. Economic environment
2. Competitive environment
3. Sociocultural environment
4. Technological environment
5. Legal environment

II- True or False(20points)

1. Multi-channel synergy is using multiple channel to enhance the effectiveness and efficiency of other channels in
the mix.one-False
2. Multi-channel conflict is the emergence of conflict between different channels used for reaching the same
customers. True
3. Marketing channel is the internal contactual organization that management operates to achieve its distribution
objectives.external-False
4. Contactual organization refers to those firms or parties who are involved in negotiatory functions as a product or
service moves from the producer to its ultimate users. True
5. A channel manager refers to anyone in the firm or organization who is involved in marketing channel decision
making. True
6. Logistic management is concerned with the entire process of setting up and operating the contactual
organization that is responsible for meeting the firm’s distribution objectives. Channel management-False
7. Logistic management is more narrowly focused on providing product availability at the appropriate times and
places in the marketing channel. True
8. Facilitating agencies are business firms that assist in the performance of distribution tasks other than buying,
selling and transferring title. True
9. Transportation agencies include all firms offering transportation service on a public basis.True
10. Storage agencies consist mainly of public warehouses that specialize in the storage of goods on a free fee
basis. Fee-False
11. Order processing agencies are firms that specialize in order fulfillment task.True
12. Transportation agencies providers sometimes referred to as “3PLs” are firms that specialize in providing logistic
service to companies or organizations that are not capable or who find it more convenient and efficient to let
outside firms perform most or all of the distribution tasks involved in supply chain management.Third party
logistic-False
13. Marketing research offer the channel member expertise in developing promotion strategy. Advertising
agencies-False
14. Insurance Companies consist of firms such as banks, finance companies and factors that specialize in
discounting receivables.Financial agencies-False
15. Financial agencies provide the channel manager with a means of shifting some of the risks inherent in any
business ventures such as fire and theft losses, in-transit damage of goods and in some cases inclement
weather.Insurance agencies-False
16. .Recession is a three consecutive quarters of decline in Gross Domestic Products(GDP).two-False
17. Competition is the rivalry between companies selling similar products and services with the goal of achieving
revenue, profit, and market share growth.True
18. RFID is an acronym that stands for radio frequency information. This is a relatively new technology that uses a
device called an RFID tag attached to a person or object such as a product that enables that person or product to
be identified and tracked using radio waves.identification-False
19. Digital revolution is the term commonly used to describe the huge transformation that has taken place over
the past three decades from analog and mechanical technology to digital technology.True
20. Interbrand competition is a competition between distributors selling the same branded product of a particular
manufacturer while intrabrand competition is a competition between distributors in the sale of branded products
of competing manufacturers.False

III-Multiple Choice(10 points)

1. Below are distribution tasks performed by merchant wholesalers except_________.d

a. Providing market coverage
b. Making sales contacts
c. Holding inventory
d. Selling agents

2. Below are distribution tasks performed by agent wholesalers except______________. a

a. Customer support
b. Selling agents
c. Brokers
d. Commission merchants

3. Below are distribution tasks performed by retailers except______________.d

a. Offering manpower and physical facilities that enable producers, manufacturers and wholesalers to have
many points of contact with consumers close to their places of residence.
b. Providing personal selling, advertising and display to aid in selling suppliers products.
c. Interpreting consumer demand and relaying this information back through the channel.
d. None of the above

4. In calculating GDP the following data is required except__________.c

a. C=Private consumption
b. I=Gross Investment
c. Interest Rates
d. X-M=Exports minus Imports

5. Occurs when the prices of goods and services rise.a

a. Inflation
b. Deflation
c. Recession
d. None of the above

6. The competition between firms of the same type. For example, an automobile manufacturer versus another
automobile manufacturer, a plumbing supply wholesaler versus another plumbing supply wholesaler, or one
supermarket versus another.a
a. Horizontal competition
b. Intertype competition
c. Vertical competition
d. Channel system competition

7. The competition between different types of firms at the same channel level such as the off-price store versus the
department store or the merchant wholesaler versus agents and brokers.b
a. Horizontal competition
b. Intertype competition
c. Vertical competition
d. Channel system competition

8. Below are some legal issues in channel management except_________________.d

a. Dual distribution
b. Exclusive dealing
c. Full-Line Forcing
d. Price war

9. Legislation affecting marketing channels includes the following except______________.c

a. Sherman Antitrust Act
b. Clayton Act
c. The Equal Pay Act
d. Robinson-Patman Act

10. The term commonly used to describe the interconnectedness and interdependence of countries around the
world.a
a. Globalization
b. Social networking
c. Keiretsu
d. None of the above