Flashcards on Marketing Distribution Channel Management
Marketing Distribution Channel Management: A Student's Guide
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UNIT 8 Distribution channel management
69 cards
Card 1
Question: What is the primary strategic importance of distribution channels?
Answer: Distribution channels are a fundamental strategic decision essential for product sales, influencing all other marketing variables and serving as a sou
Card 2
Question: Define commercial distribution.
Answer: Commercial distribution consists of getting finished products from the producer to the end customer, with necessary services and in the right quantity
Card 3
Question: List the four utilities that distribution offers and give a brief function of each.
Answer: Form utility: availability of product in desired quantity/packaging; Time utility: product available at the right time so consumer doesn't have to sto
Card 4
Question: Why do manufacturers work with intermediaries despite losing direct control over sales?
Answer: Manufacturers use intermediaries because they reduce commercial costs and increase efficiency and effectiveness in distribution functions, even though
Card 5
Question: What is one main disadvantage of using intermediaries mentioned in the content?
Answer: Lack of direct control over how and to whom products are sold, which can lead to conflicts.
Card 6
Question: How do intermediaries reduce the potential number of transactions?
Answer: By acting as middlemen who aggregate supply and match it to demand, intermediaries reduce the number of direct transactions required between many prod
Card 7
Question: What are the supply–demand alignment functions performed by intermediaries?
Answer: Intermediaries offer products from different suppliers and group or divide supply to match consumer demand.
Card 8
Question: How do intermediaries contribute to assortment for consumers?
Answer: They provide consumers with the possibility to choose among brands in the same category, whereas manufacturers typically offer one or limited product
Card 9
Question: Name the key physical distribution functions handled by intermediaries.
Answer: Transport and handling, storage, inventory management and control, and delivery.
Card 10
Question: Give an example from the content of how an intermediary supports supply–demand matching.
Answer: A fruit wholesaler buys from many small producers to satisfy demand in the target market.