Tag: wholesale trade

Questions Related to wholesale trade

A distribution system is said to be ______ when the product or service leaves the producer and goes directly to the customer with no middlemen involved.

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. direct

  2. indirect

  3. one level

  4. two tier

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Correct Option: A
Explanation:

Distribution systems can be defined as the sequential flow of procedures, systems, and activities which are designed and linked to facilitate and monitor the movement of goods and services from the source to the consumer.

Radial, Loop, & Network Systems. There are three basic types of distribution system designs: Radial, Loop, or Network. The Radial distribution system is the cheapest to build and is widely used in sparsely populated areas. A radial system has only one power source for a group of customers.

A distribution channel in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users.

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. True

  2. False

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Correct Option: A
Explanation:

A distribution channel is the route through which goods or services move from the company to the customer or the transfer of payment happens from the customer to the company. Distribution channels can mean selling of products directly or selling through wholesalers, retailers etc.

The companys product-mix influences the pattern of channels. This is substantiated from the which of the following?

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. Middlemen who can provide wanted marketing services will be given first preference.

  2. Size and average frequency of customers orders also influence the channel decision.

  3. The broader the product- line, the shorter will be the channel.

  4. None of the above

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Correct Option: C
Explanation:

Elements of marketing mix such as price, promotion, and distribution are also equally important in designing product mix. Company tries to maintain consistency among these all elements to carry out marketing activities effectively and efficiently.

THE PRODUCT IN FOUR P'S (MARKETING MIX).
Product has a vital role in developing the strategy for the overall marketing mix which includes place, price and promotion. Through a definition of the product features and benefits, the rest of the marketing mix elements are determined and agreed upon

An agent facilitates to reduce the distance between the manufacturer and the wholesaler. This is under which type of channel?

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. Zero Level Channel

  2. One Level Channel

  3. Two Level Channel

  4. Three Level Channel

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Correct Option: D
Explanation:

An intermediary in the channel is called an agent/middleman. Channels normally vary from two-level channels without intermediaries to five-level channels with three intermediaries. For example, a leather handbag manufacturer who prepares handbags and sells it directly to the customer is in a two-level channel.

Market influences the choice of channels of distribution. Identify the factors related to market.

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. For consumer market, retailer is essential whereas in business market we can eliminate retailing.

  2. For large market size, there are many channels, whereas, for small market size direct selling may be profitable.

  3. For highly concentrated market, direct selling is preferred.

  4. All of the above

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Correct Option: D
Explanation:

Market influences sometimes called the internal environment include price, human resources, and firm culture. External influences, or the external environment, include technology, competitors and the economy. 

Small businesses tend to have more control over internal influences than external ones.

When the manufacturer instead of selling the goods to the intermediary sells it directly to the consumer then this is known as ___.

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. One Level Channel

  2. Zero Level Channel

  3. Two Level Channel

  4. Three Level Channel

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Correct Option: B
Explanation:

Zero Level channel / Direct Marketing Channel. Consists of a manufacturer directly selling to the end consumer. This might mean door to door sales, direct mails or telemarketing. Dell online sales is a perfect example of a zero level channel marketing.

Today's large, progressive wholesalers have successfully reacted to rising costs by ________. 

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. investing little money in equipment or systems

  2. locating in low-rent, low-tax areas

  3. investing in information technology systems

  4. reducing promotional activities

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Correct Option: D
Explanation:

Product and service promotion is the most common form of marketing. Promotional activities can include: advertising you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and online

Who plays their significant role in distribution of goods though they do not sell directly to ultimate users or consumers?

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. Retailer

  2. Wholesaler 

  3. Mediator

  4. Commission agent

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Correct Option: B
Explanation:

Wholesaler is a person or a firm that buys a large quantity o goods from the manufacturers, producers, vendors and sells it to the retailers or other businesses who further sell it to the consumers. The wholesaler does not sell the products directly to the consumer, the product flows from wholesaler to the retailer and then to the end user.

Which of the following is true in relation to wholesale trade?

business organisation and correspondence middlemen 1 - wholesaler characteristics of wholesale trade kinds of mercantile agents or agent middlemen wholesale trade characteristics, necessity, services and survival of a wholesaler

  1. Wholesalers generally take title of the goods and bear the business risks by purchasing and selling the goods in their own name

  2. Wholesalers purchase in bulk and sell in small lots to retailers or industrial users

  3. Wholesalers undertake various activities such as grading of products, packing into smaller lots, storage, transportation, promotion of goods, collection of market information etc

  4. All of the above

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Correct Option: D