Distribution Management - Prelim

The correct answer is "price" because it refers to the specific amount of money that a customer pays in exchange for a product. The price is determined by various factors such as production costs, competition, and market demand. It is an essential element of the marketing mix and plays a crucial role in influencing consumer behavior and profitability for businesses.

The term "place" refers to the location where a product can be purchased. This could include physical stores, online platforms, or any other distribution channels where the product is made available to consumers. It is an important aspect of the marketing mix as it determines the accessibility and convenience for customers to purchase the product.

The given correct answer is "product". A product refers to a tangible object or an intangible service that is produced or manufactured on a large scale with a specific volume of units. It can be something physical that can be touched or a service that is provided to customers. In the context of marketing, the product is one of the four elements of the marketing mix and represents what the company offers to its customers.

A supermarket is the correct answer because it is a type of store that primarily sells food products. Unlike warehouse stores, department stores, discount stores, and general merchandise stores, supermarkets focus on offering a wide range of groceries, including fresh produce, dairy products, meat, and packaged goods. While other types of stores may also sell some food items, supermarkets specialize in providing a comprehensive selection of food products to meet the everyday needs of shoppers.

A marketplace is a location where goods and services are exchanged. It is a place where buyers and sellers come together to engage in commercial transactions. In a marketplace, various vendors and merchants offer their products or services for sale, and customers have the opportunity to browse and make purchases. This term can refer to physical spaces such as traditional markets or online platforms where e-commerce takes place.

The correct answer is "Secondhand retail" because it refers to the selling of used or previously owned goods. This type of retail involves the resale of items that have been previously owned by someone else, providing customers with the opportunity to purchase items at a lower cost compared to buying new.

Convenience stores are small stores that typically have extended hours and stock everyday or roadside items. They are designed to provide convenience to customers by offering a wide range of products in a convenient location. These stores are usually found in residential areas or along busy streets, making them easily accessible for customers who need to quickly purchase essential items. Convenience stores often offer a variety of products such as snacks, beverages, toiletries, and basic groceries, catering to the immediate needs of customers.

Promotion represents all of the communications that a marketer may use in the marketplace. This includes advertising, sales promotions, public relations, personal selling, and direct marketing. Promotion is an essential element of the marketing mix as it helps to create awareness and generate demand for a product or service. It involves various tactics and strategies to effectively communicate the value proposition to the target audience and persuade them to make a purchase. By using promotion, marketers can reach out to their customers, inform them about their offerings, and ultimately drive sales.

In this context, the term "commodity" refers to a product that is bought and sold in the market. The other options, such as communication, channel, and cost, do not accurately represent a product that is consumed or used by consumers or citizens. Therefore, "commodity" is the correct answer as it aligns with the given context.

The given answer "cost" is the correct answer because the question is asking for a term that is related to producing cost, selling cost, purchasing cost, and social cost. "Cost" is a broad term that encompasses all these different types of costs. It refers to the expenses incurred in the production, purchase, sale, or maintenance of a product or service. Therefore, "cost" is the most suitable term that encompasses all the mentioned types of costs.

A distributor is the person who sells products or goods to retailers. They act as a middleman between the manufacturer or producer and the retailer. Distributors purchase products in bulk from the manufacturer and then sell them to retailers in smaller quantities. They are responsible for ensuring that the products reach the retailers in a timely manner and in the desired quantities. Distributors play a crucial role in the supply chain and help to bridge the gap between producers and retailers.

A demographic store is a type of retailer that focuses on catering to the needs and preferences of a specific demographic group. This can include factors such as age, gender, income level, or lifestyle. By tailoring their products and marketing strategies to a particular segment of the population, demographic stores are able to better meet the unique demands of their target customers. This approach can help them attract and retain loyal customers who feel understood and valued by the store.

A warehouse store is the correct answer because it is a type of retail store that specializes in selling low-cost, often high quantity goods that are piled on pallets or steel shelves. These stores typically offer a wide range of products, including groceries, household items, and electronics, at discounted prices. The emphasis is on bulk buying and cost savings for the customers.

Shopping refers to the act of buying products. It involves the process of searching, selecting, and purchasing goods or services from retailers or online platforms. This activity is typically done by consumers who have a need or desire for a particular product. Shopping can be done for various purposes such as fulfilling basic needs, indulging in leisure activities, or satisfying personal preferences. It is an essential part of the consumer behavior process and contributes to the overall economy by driving demand and sales in the retail industry.

Door to door is the correct answer because it refers to the practice where a salesperson travels directly to the customer's location to sell goods. This method eliminates the need for customers to visit a physical store or make their own arrangements for delivery. The salesperson brings the goods directly to the customer's doorstep, making the purchasing process more convenient and personalized.

A retailer is the person who sells products or services directly to end-users or consumers. They are responsible for managing a physical or online store where customers can purchase goods. Unlike salesmen who may work for a specific company and focus on selling their products, a retailer can sell a variety of products from different brands. A distributor, on the other hand, is responsible for distributing products to retailers or other businesses. A manager is a broad term and can refer to a person who oversees various aspects of a business, including sales, but it does not specifically imply selling to end-users or consumers.

Intensive distribution is the correct answer because it refers to a distribution strategy where a product is made available through as many outlets as possible. This means that the product is widely stocked by resellers, leading to price competition among them. This strategy is typically used for low-priced and frequently purchased products, where the goal is to maximize market coverage and accessibility for consumers.

The word "retailer" comes from the French word "retailler." The prefix "re-" means "again" or "back," and "tailler" means "to cut." In the context of retail, "retailler" refers to the act of cutting or dividing goods for sale. Over time, the meaning of "retailler" evolved to encompass the broader concept of selling goods in small quantities to consumers. Hence, "retailler" became the origin of the English word "retail."

A variety store is the correct answer because it offers extremely low-cost goods with a limited selection. Unlike warehouse stores, which typically sell items in bulk, and demographic stores, which cater to specific demographics, variety stores offer a wide range of products at affordable prices. These stores are known for their diverse inventory, allowing customers to find a variety of items without breaking the bank.

Counter service is the correct answer because it refers to a situation where goods are not accessible to buyers and must be obtained directly from the seller. This is common for small expensive items and controlled items like medicine and liquor. In counter service, customers approach a designated counter or service area where they can request and receive the desired goods or services directly from the seller or service provider.

Suggested retail pricing refers to the practice of charging the amount recommended by the manufacturer for a product. This price is usually printed on the product itself. It is a common strategy used by manufacturers to provide guidance to retailers and ensure consistency in pricing across different locations. By following the suggested retail pricing, retailers can maintain a standard markup and ensure profitability while also aligning with the manufacturer's pricing strategy.

Consignment refers to a business arrangement where a person places an item in a store, and if the item sells, the person gives the shop owner a percentage of the sale price. This is a common practice in secondhand retail, where individuals can sell their used items through a store without having to manage the selling process themselves. It allows people to earn money from their unwanted items while giving the store owner the opportunity to profit from the sale. Pawnshops and lending are not applicable in this context as they involve different types of transactions.

A destination store is a type of store that customers are willing to travel to specifically visit, often over a large area. This suggests that the store offers unique products, services, or experiences that are not easily found elsewhere, making it a sought-after destination for customers. Unlike a grocery store or department store, which are more commonly found and visited for everyday needs, a destination store attracts customers who are willing to make a special trip to visit it.

A distribution chain refers to the process of transferring a product from the manufacturer to the end consumer through a series of intermediaries. Each intermediary in the chain plays a role in the distribution process, passing the product along to the next organization until it reaches the final consumer. This chain ensures that the product is efficiently and effectively distributed to the intended target market, allowing for wider availability and accessibility to the end user.

Selective distribution refers to a distribution strategy where a limited number of resellers are chosen to stock and sell a product. This strategy is suitable when a company wants to maintain control over the distribution process and ensure that the product is available only in specific locations or outlets. By carefully selecting resellers, the company can target specific market segments and maintain a certain level of exclusivity for their product. This approach allows the company to have greater control over pricing, branding, and customer experience.

Distribution is one of the elements of marketing mix that focuses on the process of getting a product or service to the consumer or business user. It involves activities such as transportation, warehousing, and inventory management to ensure that the product is available in the right place at the right time. Distribution channels are used to reach the target market effectively and efficiently. By managing distribution effectively, businesses can ensure that their products or services are readily accessible to customers, which can ultimately lead to increased sales and customer satisfaction.

A pawnshop is a type of retail where goods that were used as collateral for loans are sold. When individuals borrow money from a pawnshop, they provide an item of value as collateral. If they are unable to repay the loan, the pawnshop can sell the item to recoup their money. Therefore, a pawnshop acts as a retail outlet for these used goods that were used as collateral.

Neil Borden is credited with coining the term "marketing mix" in 1953. The marketing mix refers to the set of controllable marketing variables that a company uses to influence consumer buying decisions. Borden's concept of the marketing mix included the famous "Four Ps" - product, price, place, and promotion. These elements are essential for creating and implementing effective marketing strategies. Therefore, Neil Borden is the correct answer as he is the one who first used the term "marketing mix."

The correct answer is "communication" because the statement suggests that marketing communication does not promote sales. This implies that communication alone does not directly lead to increased sales or conversion of customers. Other factors such as product quality, pricing, and promotion strategies may also be necessary to drive sales.

Self-service has become common since the 1920s because it allows customers to handle and examine goods before making a purchase. This concept revolutionized the retail industry by giving customers the freedom to browse and choose products at their own pace, without the need for assistance from salespeople. Self-service also allows for greater efficiency and cost savings for retailers, as it reduces the need for staff to constantly be available to assist customers. Overall, self-service has become a popular and convenient option for both customers and retailers alike.

The correct answer is "channel." In the context of flow of commodity and marketing channels, a channel refers to the path or route through which a commodity or product moves from the producer to the consumer. It includes all the intermediaries involved in the distribution process, such as wholesalers, retailers, and agents. Channels play a crucial role in facilitating the movement of goods, ensuring efficient distribution, and reaching the target market effectively.

A general merchandise store is a hybrid between a department store and a discount store. It offers a wide range of products similar to a department store but at discounted prices like a discount store. This type of store typically sells various items such as clothing, electronics, home goods, and groceries, catering to a wide range of customer needs.

Cost-plus pricing is a pricing strategy where a markup amount is added to the retailer's cost. This allows the retailer to set a selling price that covers the cost of the product plus a desired profit margin. By using this strategy, the retailer ensures that they are able to cover their expenses and make a profit on each sale. This method is commonly used in industries where costs can vary significantly and retailers need to account for these variations when setting prices.

E. Jerome McCarthy is the correct answer because he is the one who proposed the 4P classification in 1960. This classification, also known as the marketing mix, includes the four elements of product, price, place, and promotion. McCarthy's 4P classification has been widely used in marketing theory and practice to analyze and develop marketing strategies.

Delivery is the correct answer because it refers to the process of shipping goods directly to the consumer's homes or workplaces. This involves the transportation and distribution of products from the seller to the buyer, eliminating the need for the consumer to physically go to a store or service counter to obtain the goods. Delivery services are commonly used in e-commerce and provide convenience and efficiency for customers.

Exclusive distribution refers to a distribution strategy where the product is only made available through a limited number of selected resellers or authorized dealers. This strategy is commonly used for high-end or luxury products, where maintaining control over the distribution channel is crucial. By restricting the number of resellers, the company can ensure that the product is sold in a specific manner and in exclusive locations, thereby maintaining its brand image and perceived value.

The given statement suggests that offering a better margin as an incentive to the owners in the channel would motivate them to promote the product over its competitors. This means that by providing a higher profit margin or financial reward, the owners would be more inclined to push the product and prioritize its sales. Therefore, "incentive" is the correct answer as it aligns with the idea of providing an additional benefit or motivation to encourage desired behavior.

Discount stores are known for offering a wide range of products and services, but their main competitive advantage is their ability to offer lower prices compared to other types of stores. These stores often sell products at discounted prices by purchasing them in bulk or by offering lower profit margins. As a result, they attract customers who are price-conscious and looking for good deals. While other types of stores may also offer a variety of products, discount stores specifically focus on providing affordable options to customers.

The correct answer is Channel value proposition. A channel value proposition refers to the benefits and value that a supplier offers to a channel member in order to persuade them to do business together. It includes factors such as competitive pricing, product quality, marketing support, and other advantages that make the partnership beneficial for both parties. This explanation aligns with the statement provided in the question, which states that the supplier sells the channel member on the commercial merits of doing business together.

A general store is a type of store that typically sells a wide variety of goods needed by the local community, especially in rural areas where access to other stores may be limited. This type of store aims to provide convenience and meet the general needs of the customers by offering a diverse range of products. Unlike big box stores, which are large retail outlets that specialize in specific categories, and convenience stores, which focus on providing quick and easy access to essential items, a general store offers a broader selection of goods.

Facing is a technique used by retailers to create the appearance of a fully stocked store, even when it may not be. It involves pulling products to the front of the shelves and arranging them neatly, making it seem like the store is well-stocked and organized. This technique helps to attract customers and give the impression that the store has a wide selection of products available.

A market square is a city square where traders set up stalls and buyers browse the merchandise. It is a common place for buying and selling goods in many cities. Traders gather in this area to display their products and attract potential customers. Buyers can walk around the square, explore the different stalls, and make purchases based on their preferences. The term "market square" is often used interchangeably with "marketplace" or "city square" to refer to this specific type of trading area in a city.

Department stores are large retail establishments that offer a wide range of products, including both soft goods (such as clothing and accessories) and hard goods (such as appliances and furniture). They typically have multiple departments, each specializing in a different category of merchandise. Department stores are known for their extensive selection and variety of products, making them a preferred choice for customers looking for a diverse shopping experience.

Bigbox stores refers to large retail establishments that encompass larger departments, offer discounts, and sell general merchandise. These stores are typically characterized by their spacious layout and warehouse-like appearance. They often offer a wide range of products, including electronics, furniture, clothing, and groceries. Examples of bigbox stores include Walmart, Target, and Best Buy.

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Customer service refers to the sum of acts and elements that allow consumers to receive what they need or desire from a retail establishment. It involves providing assistance, support, and guidance to customers throughout their shopping experience. By offering excellent customer service, retail establishments can enhance customer satisfaction and build strong relationships with their clientele. This can lead to increased customer loyalty, positive word-of-mouth recommendations, and ultimately, improved business performance.

Merchandizing refers to the process of promoting and selling products through strategic planning, advertising, and display techniques. It involves market research to understand consumer needs, developing new products to meet those needs, coordinating manufacturing and marketing efforts, and implementing effective advertising and selling strategies. This comprehensive approach to sales promotion makes merchandizing the correct answer.

Retailing refers to the process of selling goods or merchandise from a fixed location, such as a store or shop. This involves the direct interaction between the retailer and the customer, where the customer can physically browse and purchase the products. Retailing is a common method used by businesses to distribute their products to consumers, offering a wide range of goods and services in a convenient and accessible manner. Merchandising, on the other hand, refers to the activities involved in promoting and presenting products in a retail environment. Direct selling involves selling products directly to consumers outside of a fixed location, typically through personal interactions or home parties.

Recreational shopping involves window shopping and browsing without the intention of making a purchase. It is a leisure activity where individuals enjoy the process of exploring different stores, products, and trends, without the pressure or need to buy anything. This type of shopping is often done for entertainment, relaxation, or simply to pass the time. It allows people to experience the joy of shopping without the commitment of making a purchase.

The term "compensation" refers to the financial rewards or benefits given to distributors' sales personnel. By offering compensation, companies aim to motivate and incentivize these individuals to promote and sell their products. Compensation can take various forms, such as salary, bonuses, commissions, or other monetary incentives. This helps create a sense of reward and recognition for the sales personnel, encouraging them to push the product more effectively.