1. What Manufacturers use to sell their products?
A. They sell their products to: Intermediaries (Middle Mans), End Users: Business or Individual consumers – Clients.
2. Who design the channel of distribution or marketing channel?
A. The Marketing Manager is responsible for creating a channel of distribution.
3. What is the main advantage of marketing distribution?
A. To Satisfy the needs of end users, to Maximize profits, to add value for the Manufacturers.
4. What are the layers of intermediaries?
A. Direct channel / indirect channel.
Zero Level Channel Direct (To End Users) – Level 1 Indirect (To Retailer To
End Users) – Level 2 Indirect (To Wholesaler To Retailers To End Users)
5. Is a direct channel always efficient?
A. A direct channel is usually more efficient, but the reach and the marketability will become harder when the product becomes widely needed on the long term.
6. A Direct channel sells directly sells directly with no intermediaries used.
7. An Indirect channel occurs when one ore more intermediary levels occurs.
8. Which type of distribution channel should a soft drink company use?
A. Indirect channel to increase the reach level for as many consumers as possible.
9. What is the main Job of an Intermediary?
A. To reduce the number of contacts for the manufacturer. And also they reduce time and efforts for the manufacturers.
10. What functions does the intermediary perform?
A. Sorting (تصنيف)
Accumulation (تجميع)
Allocation (تقسيم في حصص)
Assorting (تنويع)
11. What are service outputs?
A. They are services made to satisfy HOW end-user wants to buy a particular product. In other words, they are outputs of the marketing channel that end-users have demand and preference for. Service outputs could include but not limited to:
(Bulk-Breaking, Spatial Convenience, Waiting and Delivery times, Product Variety, Customer Service, Information Provision)
12. Why Does Conflict Occur?
A. Channel Conflict occurs when one channel member's actions prevent the channel from achieving its goals. The conflict could occur when there is a
A. Goal Conflict – B. Domain Conflict. – C. Perceptual Conflict.
13. What are the differences between a Horizontal and Vertical Channel conflict?
A. Horizontal conflict occurs between members at the same channel level (Wholesaler-Wholesaler)
Vertical conflict occurs between members at different channel levels (Wholesaler-Retailer)
14. Why do manufacturers hold inventories?
A. 1. To create a buffer for uncertainties in supply and demand.
2. To take advantage of economies of scale for batch processed orders.
3. For Transportation Reasons.
4. For Lead Time Reasons on how long it takes to be re-supplied.
15. What is a Zero-Based Channel?
A. A Zero-Based channel is a channel design that A. Meets or fulfills the target segment's demands. B. At a minimum cost of performing the necessary channel flows.
16. Why do we need Efficiency Templates?
A. To Help you understand:
1- Who is doing what functions and flows in the channel?
2- The cost and value each channel member is responsible for?
3- Are channel members fairly compensated for the performance of these flows?
17. Convenience goods are best distributed through an INTENSIVE INDIRECT CHANNEL.
18. Luxurious Goods are best distributed through an EXCLUSIVE DIRECT CHANNEL.
19. Consumer Goods distribution can be made through an either direct or indirect or both channels depending on the nature of the good.
20. What are Agents / Brokers?
A. They are considered as manufacturer representatives that do not take title or physical possession of the good.
21. What are the differences between and Agent and a Broker?
A. An Agent represents only one manufacturer, Where as a broker represents more than one manufacturer.
22. What the types of Manufacturers?
A. 1. Brand Name (ex, Coca Cola). 2. Private Label
(البرايفت ليبل يعني المنتجات الي اصلا تصنع بدون اسم تجاري مثل الاشياء الي تلقاها باسم السيفوي في التميمي واصلا التميمي ماسوتها)
23. What are the channel flows?
A. They are the flows of physical possession, ownership, promotion, negotiation, financing, risking, ordering, and payment.
24. What Gap Analysis?
A. A gap analysis is an analysis that should be performed by the channel manager on a channel that already exists in the market to determine if there is a gap in either the supply or demand side.
Gaps on Demand side occur when: One of the service output demands is either under supplied or over supplied.
Gaps on Supply side occur when: At least one flow in the channel is carried out at too high cost leading to reduced sales and market share.