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Distribution Management

The process used to oversee the movement of goods from supplier to manufacturer to wholesaler or retailer and finally to the end consumer.

direct selling

selling through intermediaries

dual distribution

reverse logistics channels

zero-level channel

intensive

exclusive

selective

strategy

process

challenges

marketing

accountancy

rosenbloom

Channel selection decisions are not necessary even when channel structure changes have not been made.

  • True
  • False

One of the basic areas of product management that needs to be considered is strategic channel management.

  • True
  • False

Where production locations and markets are distanced, physical distribution becomes all the more crucial.

  • True
  • False

With respect to new product planning and development, one of the basic product channel management issues is obtaining channel member input into new product planning.

  • True
  • False

“_____ integration is a strategy where a firm gains ownership or increased control over its previous suppliers.”

  • Backward

Middlemen serve as expert purchasing agents for their customers, and expert sales specialists for their manufacturers.

  • True
  • False

Commission agent is an agent who does not have direct physical possession of goods in which he deals but he represents either the buyer or the seller in negotiating purchases or sales for his principals.

  • True
  • False

The development of new products is a challenge faced by virtually all producers and manufacturers. New technologies, changing customer preferences, and competitive forces all contribute to the need to introduce new products.

  • True
  • False

Channel monitoring is sending and receiving information that is relevant to the operation of the channel.

  • True
  • False

Most frequent conflicts arise between the company field force and the channel partners as the field force tends to give inconsistent instruction to dealers.

  • True
  • False

______________ goal or goal divergence seems to be the most common. This goal is at the variance with the channel principal who feels that he has to cover all outlets and sell all products at each outlet.

  • Clash
  • Differentiated
  • Uncommon

Which of the following is a sales channel?

  • field selling
  • tele marketing
  • inside selling
  • all of the above

Achieving success for new product is dependent on only one factor.

  • True
  • False

Marketing channel can be defined “as the set of interdependent marketing institutions participating in the marketing activities involved in the movement or the flow of goods or services from the primary producer to the ultimate consumer.”

  • True
  • False

As the product enters the growth stage, rapid market growth begins.

  • True
  • False

Sales staff are guided by the strategic planning at company level and at the marketing level, when they prepare a sales plan consisting of sales objectives, sales strategies and tactics.

  • True
  • False

Companies cannot legally define the territories of their distributors. One dealer may even offer better terms to the costumers in the other territory than his own creating a further conflict among the costumers also.

  • True
  • False

These are agreed-upon metrics used in assessing a sales organization’s performance in different areas such as profitability, sustainability, efficiency. They are also used to discover trends and to evaluate the productivity and performance of individual sellers.

  • KPIs

For new products to be successful, it must be accepted by the final users- whether industrial customers or final consumers.

  • True
  • False

____________ is a benefit given to a channel member for him to conform his behavior in line with system.

  • Salary
  • Reward
  • Recognition

It refers to bringing the product to the market and giving it to the final consumer.

  • Marketing
  • Distribution
  • Transporting
  • Selling

“Backward integration is a strategy where a firm gains ownership or increased control over its previous customers (distributors or retailers).”

  • True
  • False

____________ integration is a strategy used by a company to gain control over its suppliers or distributors in order to increase the firm’s power in the marketplace, reduce transaction costs and secure supplies or distribution channels.

  • horizontal
  • vertical
  • backward

Encouraging Channel Member Input into New Product Planning One way of promoting increased enthusiasm and acceptance for new products by channel members is by obtaining some input from them into new product planning.

  • True
  • False

It is not unusual for channel _____ to need special education or training provided by the manufacturer in order to sell new products successfully.

  • members

______________ is defined as ‘the ability to influence actions of channel members.

  • Leadership
  • Skills
  • Power

_____ is a strategy that many companies use to gain control over their industry’s value chain. This strategy is one of the major considerations when developing corporate level strategy.

  • Vertical integration

As sales management is a part of marketing management, sales planning should be integrated with marketing planning.

  • True
  • False

_____ integration strategy is most beneficial when: Firm’s current suppliers are unreliable, expensive or cannot supply the required inputs.

  • Backward

Stockroom is a commercial building for storage of goods

  • True
  • False

It is preferable if the amount of product service expected by final buyers is considerable.

  • Local Distribution
  • Selective or Limited Distribution
  • Exclusive Distribution
  • Extensive Distribution

These are skills like planning, organizing, controlling, and decision making.

  • Managerial skills

Transportation helps in balancing demand and supply and in stabilizing prices.

  • True
  • False

In general, it is usually a safe assumption that ______________ intermediaries are more successful, more profitable, better established, and handle better product lines.

  • micro
  • small
  • medium
  • large

The Goal of a Channel Strategy is to minimize Channel Sales with the least possible expenditure of Resources.

  • True
  • False

_____________ is a part of any channel network.

  • Responsibility
  • Choice
  • Power

Distribution refers to the activities involving the sale of goods or services to the ultimate consumer for personal use and not business use.

  • True
  • False

Which of the following is an objective of Sales Management?

  • Sales volume/targets
  • Contribution to profit
  • Continuing growth
  • all of the above

This power stems from sheer association.

  • Expertise
  • Legitimacy
  • Reference

Power is our willingness to use force in a relationship. It is often the means by which we are able to control or influence the behavior of another party.

  • True
  • False

Extension of ________________ to consumers is another problem area. The distributor thinks that he is more knowledgeable of his costumers and knows whom to extend credit to.

  • authority
  • credits
  • power

Marketing management means the planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal sales force.

  • True
  • False

Field Sales Organization sources such as trade associations, trade publications, directories, trade shows, and the “grapevine” are all valuable sources of information about prospective members.

  • True
  • False

It is common knowledge that a certain level of storage is in inescapable in marketing of most products.

  • True
  • False

Buyers and sales people, who do business together, do not have some type of business (or working) relationships.

  • True
  • False

_____ Term goals include Quarter Sales and Cost- Saving.

  • short

The sales funnel often serves as a visualization of a prospect’s proximity to or likelihood of making a purchase by identifying the cognitive or emotional phases the prospect undergoes in the buying process.

  • True
  • False

A company’s marketing team typically consists of two basic groups: •Field selling (or personal selling) team •Head quarter marketing plan

  • True
  • False

The particular mix of products carried by any given channel member is his _____. It is analogous to a manufacturer’s product mix.

  • assortment

An example of _____ integration would be a company competing in raw materials industry and buying another company in the same industry rather than trying to expand to intermediate goods industry.

  • horizontal

Balanced integration strategy is simply a combination of forward and backward integrations.

  • True
  • False

Many firms learn about potential channel members through direct inquiries from intermediaries handling their products.

  • True
  • False

Cost is the money value of a product or service expressed in terms of peso or centavo.

  • True
  • False

An organization should vertically integrate when _____ of making the product inside the company are lower than the costs of buying that product in the market.

  • costs

In most companies, the path to a career in sales management starts from the position of sales manager.

  • True
  • False

Which of the following is not an element of Distribution management?

  • Product Pricing and Promotion
  • Planning,Forecasting,& budgeting
  • Marketing Channels
  • Sales force management

Sales oriented is a target return objective that sets a specific level of profit.

  • True
  • False

In this stage of conflict, some amount of discord exists but does not seem to be affecting the working of the channel partners affecting the achievement of the costumer services objectives.

  • latent
  • perceived
  • felt

This power emanates from contracts or agreements usually in writing.

  • Legitimacy
  • Expertise
  • Knowledge

Which of the following is not a contribution to personal selling?

  • Sales people provide market research and customer feedback
  • Increase in market share
  • Sales generate revenue
  • Sales people provide solutions to problems

Conflict does not mean killing one another, but instead means there is a process by which there is a disagreement.

  • True
  • False

Final users are not concerned about how the product will perform when used.

  • True
  • False

Which is not part of Channel choice?

  • customers
  • market
  • middlemen
  • product

Distribution channels have a distinctive role in the successful implementation of marketing plans and strategies.

  • True
  • False

Channel design is presented as a decision faced by the marketer. As a general rule, the greater the intensity of distribution, the less emphasis on selection.

  • True
  • False

Logistics is the management of the flow of goods, information and other resources.

  • True
  • False

A ________________ system is set to be well-coordinated if each channel member understands his role correctly and performs it to help the entire system to achieve its costumer services objectives.

  • marketing
  • channel
  • logistics
  • distribution

This is a solution where both parties agree to give some of their requirement and find a mid-way solution.

  • Aggression
  • Compromise
  • Collaboration

At the heart of what the manufacturer has to offer is a good ____________________ with strong sales and profit potential (to the intermediary).

  • price
  • brand
  • image
  • product line

B2B marketing success comes from broadcasting a product over radio or television.

  • True
  • False

Anytime individuals or organizations must work together and rely on each other for personal success, conflict is inevitable.

  • True
  • False

Competition or aggression this means being concerned about one’s own goals without any thought for the others a purely selfish style

  • True
  • False

Selling includes a variety of sales jobs, which are different from one to another.

  • True
  • False

The ownership of supply and distribution channels may lead to lower quality products and reduced efficiency because of the lack of _________________.

  • competition
  • demand
  • promotion
  • supplier

Common B2B sales KPIs include:

  • Quota attainment rate
  • Average deal size
  • Sales velocity
  • all of the above

Which of the following is not an advantage of Balance integration strategy?

  • Critical resources can be acquired through VI.
  • Lower costs due to eliminated market transaction costs.
  • Improved quality of supplies.
  • Higher costs if the company is incapable to manage new activities efficiently

Use of exclusive dealers by companies is not permitted. The company cannot bind the distributor from doing any business of his choice.

  • True
  • False

It is one of the most exciting, financially rewarding and challenging careers. There is more position available in sales than any other professional occupations.

  • personal selling

Short Term goals include a Sustained Partner Relationship and a well-trained Field Force

  • True
  • False

B2B marketing involves building valuable relationships to guarantee lasting customers -- an important goal for any company, whether a mega retail corporation or a smaller family-owned one.

  • True
  • False

These are specific task or functions such as training, selling, negotiating as well as the ability to use computers and problem solving abilities in the specific industry discipline.

  • Technical skills

It occurs between channels a same level like distributors who stray into each others designated territory

  • hybrid
  • horizontal conflict
  • vertical conflict

The important question in corporate strategy is, whether the company should participate in one activity (one industry) or many activities (many industries) along the industry value chain.

  • True
  • False

The first problem of channel design is whether you want direct sale to consumer or indirect sale i.e., sale through middlemen.

  • True
  • False

In most medium and large sized organization, there are staff managerial position, which arranges assistance to help to the line sales managers and the salespeople.

  • True
  • False

The channel system consist of a number of players who are all equally motivated to implement the ideal channel design as their expectations from the channel differ.

  • True
  • False

No channel member likes to take on a new product that will cause trouble. This applies to product problems that arise while the product is still in the channel member’s inventory as well as those that may appear soon after the product is sold to the consumer.

  • True
  • False

Today,____ _______companies are among the most vertically integrated firms.

  • oil
  • telecommunications
  • transportation
  • food

It is important to remember that the selection process is a two-way street. It is not only the producer and manufacturer who does the selecting – but also the __________________as well.

  • intermediaries
  • agents
  • brokers
  • customers

The channel flows are streamlined to deliver the costumer service objective as desired by the end of ___________________.

  • customers
  • buyers
  • distributors
  • users

Product planning and development is a systematic process for originating, developing and evaluating new product ideas.

  • True
  • False

When selling to consumers, there is an emotional component involved. Individuals are drawn to products because of how they make them feel.

  • True
  • False

In Manifest stage, here we are reaching the stage of worry, concern and alarm. Here the parties are trying to outsmart each other.

  • True
  • False

Effective channel management requires that the channel manager be aware of how channel management interfaces with product, price, promotion, and logistics in the marketing channel.

  • True
  • False

Felt is the stage where the discord becomes noticeable and the channel partners become aware of the opposition.

  • True
  • False

I refers to a sales model or a category of selling wherein a business sells its products or services to another business.

  • Direct selling
  • B2B marketing
  • B2B sales
  • Personal selling

In the case of exclusive dealers or distributors of companies their fortunes are dependent on the company products doing well.

  • True
  • False

The exact number and names of stages in your sales process will depend on the following your industry, company, and sales organization, but the B2B sales process is typically a five- to eight-stage sales cycle.

  • industry
  • company
  • sales organization
  • all of the above

Brokers may buy or sell on their own account and at their own risk of loss.

  • True
  • False

_____ management of a product line is necessary if a product line is to remain viable and profitable.

  • Strategic

It is fast becoming the best way to learn more about your prospect or customer.

  • artificial intelligence

During the growth stage, strong promotional efforts are needed to launch a product.

  • True
  • False

Which is not part of the product life cycle?

  • maturity
  • growth
  • introduction
  • acceptance

B2B marketing techniques rely on the same basic principles as consumer marketing, but are executed in a unique way.

  • True
  • False

It is a situation of complete surrender. One party helps the other achieved it goals without being worried about its own goals.

  • Collaboration
  • Compromise
  • Accommodation

Channel Management is finding and managing Partners to ensure a continued supply of goods from the Company to its Consumer.

  • True
  • False

It is essential when the price is low, buying is frequent and brand switching is a common phenomenon.

  • local distribution
  • Extensive Distribution
  • Selective or Limited Distribution
  • Exclusive Distribution

If the manufacturing company engages in sales or after-sales industries it pursues forward integration strategy.

  • True
  • False

Wholesaling includes the sale and all activities directly related to the sale of products or services to those who are buying for business use.

  • True
  • False

It include the sales manager abilities to motivate, lead, and communicate and co- ordinate effectively with the people around him/her.

  • people skills

B2B marketing is largely employed by companies that make products that consumers have no practical use for.

  • True
  • False

When the same manufacturing company starts making intermediate goods for itself or takes over its previous suppliers, it pursues forward integration strategy.

  • True
  • False

B2B sales representatives are responsible for the following activities except for:

  • developing a product or service
  • making and answering sales calls
  • managing sales emails
  • setting meetings

channel manager needs to use the firm’s product, pricing, _____, and logistics variables to their maximum effect in securing cooperation from channel members.

  • promotion

Channel conflict is situation of discord or disagreement between channel members from the same marketing channel system.

  • True
  • False

One of the five issues that are frequently important for a wide range of channels is:

  • Do the old products fit into the present channel members’ assortment?
  • What input can consumer provide into new product planning?
  • What has been done to assure that new products will be acceptable to the channel members?

Strategic management of a product line is necessary if a product line is to remain viable and profitable. Among the most important of these strategies are:

  • Market expansion
  • Product targeting
  • Product differentiation strategy

In the face of slower growth or near-saturation, the sales and turnover rate for the product will decline for many of the channel members.

  • True
  • False

In domain conflict, the understanding of their objectives of various channel members is different.

  • True
  • False

Many B2B marketers are able to focus on very niche industries which reflect specialized needs. While this can make marketing a bit more straightforward, it also requires a high level of knowledge outside of marketing specialists.

  • True
  • False

Businesses are usually more concerned with consumers than cost, value, and revenue potential.

  • True
  • False

Firms implement backward integration strategy in order to secure stable input of resources and become more efficient.

  • True
  • False

Expecting things to improve by themselves is one of the mistakes in management.

  • True
  • False

This route tries to maximize the benefit for both parties while finding a solution to the dispute a win-win approach.

  • Collaboration
  • Accommodation
  • Compromise

While consumers choose products based not only on price but on popularity, status, and other emotional triggers, B2B buyers make decisions on profit potential alone.

  • True
  • False

____________________is a complex process that requires a well designed and executed B2B sales strategy in order to succeed. It follows a distinct process and uses a wide range of sales techniques for various buyer personas and selling situations.

  • none of the above
  • B2B selling
  • B2b marketing
  • B2B sales

Marketing intermediaries or middlemen in the distribution network are indispensable because they perform specialised marketing functions such as buying, selling, transporting, warehousing, grading, sorting, financing, risk-taking, and dissemination of marketing intelligence.

  • True
  • False

Aggression is used by weak channel members. This can only happen where the relationship is not of much importance and the problem is postponed or discussion is avoided.

  • True
  • False

Having developed a list of prospective channel members, the next step is to select these prospects in light of selection criteria.

  • True
  • False

____________________generally try to avoid intermediaries who carry directly competitive product lines. Many times both wholesale and retail intermediaries carry directly competitive products.

  • Wholesalers
  • Retailers
  • Distributors
  • Manufacturers

Business-to-business marketing (or B2B marketing, as it is commonly known) involves the sale of one company’s product or service to consumer.

  • True
  • False

Channel management involves more than just motivation management; the channel manager must also be skilled at using the element of the marketing _____ to facilitate the administration of the channel.

  • mix

Prospective intermediaries also look to manufacturers for promotional support. Such factors as advertising allowances, cooperative advertising campaigns, point-of-purchase material, and showroom displays indicate strong channel member support and serve as good inducements to prospective intermediaries to join the channel.

  • True
  • False

A firm should consider whether moving into new industries would not dilute its current competencies. New activities in a company are also harder to manage and _____

  • control

Many manufacturers feel that a prospective channel member is not even worth considering if the quality of management is____________.

  • poor
  • good
  • satisfactory
  • mess

Competition is direct behavior and is opposing in nature.

  • True
  • False
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