Retail and distribution

39 important questions on Retail and distribution

What is a distribution channel?

It is a series of firms or individuals that facilitates the movement of a product from the producer to the final customer.

Which two ways are there of the distribution channels?

- Indirect
- Direct

What are the functions of distribution channels?

- Logistics functions
- Transportation and storage functions
- efficiency creation
- Facilitating functions
- Repat and maintenance functions
- Risk taking
- Communications and transaction functions.
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What are two ways of creating efficiencies?


- breaking bulk
- creating assortments

Wahat is breaking bulk?

Channel member purchase are quantities form manufacturers and sell smaller quantities to many different customers

What is knowledge management?

It refers to a comprehensive approach to collecting, organising, strong and retrieving a firms' information assets.

What are wholesale intermediaries?

It are firms rear hand the flow of products from the manufacturer to the retailer or business user.

Which 4 kinds of wholesalers are there?

- full-service merchant wholesalers
- limited- service wholesalers
- cash-and-carry wholesalers
- Mail-order wholesalers

What are dual distribution channels?

When producers, dealers ,wholesalers , retailers and customers interact with more than one channel.

What is a hybrid marketing system?

When a firm adds channels and communications methods.

What are the 4 steps in distribution planning?

- Develop distribution objectives
- Evaluate internal and external environmental influences
- Choose a distribution strategy
- Develop distribution tactics.

What is a conventional marketing system?

- It is a multi level distribution channel in which members work independently of one another.

What is a vertical marketing system?

It is a channel in which there is formal cooperation among channel members at two or more different levels: manufacturing, wholesaling and retailing.

What is intensive distribution?

It aims to maximise market coverage by selling a product through as many wholesalers or retailers that will stock and sell the product as possible.

What is exclusive distribution?

It means limiting distribution to a single outlet in a particular region.

What are the 5 functions of logistics?

- order processing
- Enterprise resource planning systems: software solution that integrates information from across the entire company.
- Warehousing
- materials handling: the moving out of products into, within and out of warehouses.
- Transportation

What are the 6 decision aspects for transportation?

- dependability
- costs
- Speed of delivery
- Accessibility
- Capability
- Traceability

What is stock control?

It means developing and implementing a process to ensure that the firm always have sufficient quantities of goods available to meet customers demands.

What is radio frequency identification?

It tags any product with tiny chips containing information about the items content, origin and destination.

What is just in time stock techniques?

It set up the delivery go goods just as they are needed on the production floor, thus minimizing the cost of holding stock while ensuring it will be there when it is needed.

What is the retail life circle?

IT says that retailers are born, grow, mature and eventually die or become obsolete.

What is pop-up retailing?

The 'here today, gone tomorrow' strategy that consumers desires to have different shopping experiences all the time in a unique way.

What are 3 factors that motivate and inspire merchant to reinvent the way they do business?

- demographics
- technology
- globalisation

What are point of sale systems?

it are computer chips that collect sales data and are connected directly into the shop's inventory control system.

What is the merchandise mix?

What the retailer is going to sell.

What is a merchandise assortment?

The selection of products a retailer sells

Which two dimensions has a merchandise assortment?

- breadth
- depth

What is a narrow assortment?

Only a limited selection of product lines

Whati s a broad assortment?

Like a warehouse, wide range of items available.e

What is merchandise depth?

It is the variety of houses available for each specific product.

What is merchandise breadth?

The number of different product lines available.

What is a deep assortment?

A big selection within a product.

Which are 5 of the major retail forms?

Convenience stores: Limited number of frequently purchased items.
Supermarkets: Food shops that carry a wide selection of edible and non edible products.
Specialty shops: Such shops have a relatively narrow and deep stock of goods.
Department stores: They sell a broad range of items and offer a deep selection organized in different sections of the shop. 
Hyper markets: Are warehouse and supermarkets in one (makro)

What is non-shop retailing?

Any methof a firm uses to complete an exchange that doesn't require a customer to visit a shop.

What is B2C e-commerce?

Business to consumer. Online exchange between companies and individual consumers.

What are experiential shoppers?

Consumers who are collectors or who enjoy hobbies.

What is traffic flow?

how shoppers will move through the shop and what areas they will pass or avoid.

What are 4 design factors for shops?

- Shop layout
- Fixture type and merchandise density
- The sound of music
- Colour and lightning.

What are 4 types of shop locations?

- Business districts
- Shopping centre
- Freestanding retailers
- Non-tradidional shop locations.

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