Mkt1003 E-learning Week: Mini Quiz (B4)

Specialty products are unique and high-end products that are not easily available in every store. These products require a specific distribution strategy to maintain their exclusivity and meet the demands of their target market. Exclusive distribution ensures that these specialty products are only available in select locations or through specific channels, limiting their availability and enhancing their perceived value. This strategy helps to maintain the brand image, control the pricing, and provide personalized customer experiences for specialty products.

Producers benefit from using intermediaries because they offer greater efficiency in making goods available to target markets. Intermediaries, such as wholesalers or retailers, have established distribution networks and relationships with customers. They can efficiently handle tasks such as warehousing, transportation, and marketing, allowing producers to focus on their core competencies. By leveraging the intermediaries' expertise and resources, producers can reach a wider customer base and ensure that their products are readily available to the intended market. This ultimately leads to increased sales and profitability for the producers.

Disintermediation refers to the process where producers bypass intermediaries and sell directly to final buyers. It can also occur when new types of channel intermediaries emerge and replace traditional ones. This eliminates the need for middlemen and allows producers to have more control over the distribution process. The concept of disintermediation is often seen as a way to increase efficiency and reduce costs in the supply chain.

SellEverythingUnderTheSun Co. adopts a multichannel distribution system because it sells its products through catalogs to consumers, via dealers to one business segment, and through its sales force to another business segment. This means that the company utilizes multiple channels or methods to distribute its products to different target markets.

Franchising is a contractual system because it involves a legal agreement between two parties, the franchisor and the franchisee. The franchisor grants the franchisee the right to operate a business using their established brand, systems, and support in exchange for fees and royalties. This contractual agreement outlines the rights and obligations of both parties, including the terms of operation, quality standards, and financial arrangements.

With a greater number of channel levels, a producer of goods would face the concern of less control. This is because as the number of channel levels increases, the producer's ability to oversee and manage each level becomes more challenging. With less control, the producer may have difficulty ensuring that their goods are being distributed and marketed effectively, potentially leading to decreased sales and customer satisfaction.

Distribution channel decisions often involve long-term commitments because companies need to establish relationships with distributors, wholesalers, or retailers that can provide consistent and reliable distribution services over an extended period of time. These commitments can include contracts, agreements, and investments in infrastructure and resources. By making long-term commitments, companies can ensure the availability and accessibility of their products to customers, maintain brand loyalty, and achieve sustainable growth in the market.

The correct answer is Direct Channel. This is because Schwan's Sales Enterprises uses door-to-door salespeople who sell directly to customers from refrigerated trucks. This method eliminates intermediaries and allows for direct interaction between the company and the customers, making it a direct channel of distribution.

When marketers set their channel objectives, they need to take into account the level of service desired by their target customers, the level of expertise that the middlemen have, and whether they want to be near to or far from their competitors. All of these factors play a crucial role in determining the appropriate channel objectives that align with the overall marketing strategy and goals. By considering these factors, marketers can ensure that their channel objectives are in line with customer expectations, leverage the expertise of middlemen, and position themselves strategically in relation to their competitors.

Merchant wholesalers take title to the merchandise they handle. This means that they legally own the goods and have the right to sell or transfer ownership of the merchandise to other parties. By taking title to the merchandise, merchant wholesalers assume the risk and responsibility associated with the goods, including any potential losses or damages. This distinguishes them from other options such as taking consignment of the goods, acting as an agent, carrying out processing, or simply not delivering the goods.

Retailers usually sell directly to consumers. They are businesses that purchase goods from distributors or manufacturers and sell them directly to the end-users or consumers. Retailers can operate in physical stores, online platforms, or both, and they play a crucial role in the distribution chain by providing a convenient and accessible way for consumers to purchase products. Unlike agents, brokers, manufacturer's representatives, and drop shippers, retailers are directly involved in the final sale to the end consumer.