Sales and Distribution Management
Mock Exam
Course Introduction
Sales and Distribution Management explores the principles and strategies involved in effectively managing a companys sales operations and distribution channels. The course covers key topics such as sales force management, recruitment, training, and motivation, as well as techniques for setting sales targets and controlling performance. It delves into the design and management of distribution networks, the role of intermediaries, logistics, and the integration of technology in facilitating product flow. By examining both theoretical frameworks and practical case studies, students gain insights into maximizing sales performance, optimizing channel relationships, and ensuring efficient product delivery to end-users in dynamic markets.
Recommended Textbook
Marketing Channel Strategy 8th Edition by Robert Palmatier
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14 Chapters
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Chapter 1: Understanding Channel Strategies
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Sample Questions
Q1) ElectroInc produces cell phone accessories and sells them to firms such as Apple and Samsung.Apple and Samsung put their own brand names on ElectroInc products before selling them to end-users.Which term best describes ElectroInc?
A) retailer
B) wholesaler
C) branded manufacturer
D) specialized manufacturer
E) private-label manufacturer
Answer: E
Q2) Valu-Mart wants to ensure that its stores are never under- or overstocked with certain products,such as paper towels,sodas,and cereal.Which tool would most likely help Valu-Mart solve this problem?
A) ROI
B) CRP
C) CRM
D) OEM
E) SWOT
Answer: B
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Chapter 2: End-User Analysis: Segmenting and Targeting
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Sample Questions
Q1) Information about segmented service output demand enables channel managers to determine which segments offer the best growth and profit opportunities for targeting purposes.
A)True
B)False
Answer: True
Q2) What are the three basic steps for segmenting end-users based on service output demands?
Answer: There are three general steps to segmenting end-users by service outputs.First,it is essential to generate a comprehensive list of all the potential service outputs desired by each end-user for the products being offered.Second,using this list of possible service outputs,the actual segmentation of the market can proceed in multiple ways.The market might be divided into a priori segments (e.g.,those often used in product or advertising decisions),then analyzed to see whether those segments share common purchasing preferences.Alternatively,research might be designed and conducted to define channel segments that best describe end-users' service output needs and purchasing patterns.Third,the channel manager should name each segment to capture its identifying characteristics.
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Chapter 3: Channel Analysis: Auditing Marketing Channels
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Sample Questions
Q1) Speculation involves delaying production until orders are received to eliminate the costs of holding expensive inventory.
A)True
B)False
Answer: False
Q2) Which term refers to channel member activities that produce the service outputs demanded by end-users?
A) information sharing
B) channel segmentation
C) reverse logistics
D) channel functions
E) bulk breaking
Answer: D
Q3) Which of the following most likely indicates the existence of a cost gap?
A) The price/value proposition is appropriate for a less demanding segment.
B) The price/value proposition is appropriate for a more demanding segment.
C) Service levels are too low, and the costs are too high.
D) Service levels are right, but the costs are too low.
E) Service demands meet service output levels.
Answer: C
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Chapter 4: Make Versus Buy Channel Analysis
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Q1) Which statement about vertical integration in an uncertain environment is most likely true?
A) Backward vertical integration is best for all firms.
B) Vertical integration is best for multinational corporations.
C) Outsourcing is best for firms with significant specificities.
D) Outsourcing will lead to far less performance ambiguities.
E) Outsourcing is best for firms without significant specificities.
Q2) According to the text,the purchase of Lens Crafters by Luxottica provided the manufacturer with an "observatory" to ________.
A) monitor distribution
B) establish brand equity
C) motivate salespeople
D) learn from customers
E) cover the market
Q3) The greater the value of company-specific capabilities,the greater the economic rationale for the manufacturer to vertically integrate.
A)True
B)False
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6
Chapter 5: Designing Channel Structures and Strategies
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Q1) In a carrier-rider relationship,which is typically very stable,each firm sells its own products and those of the partner.
A)True
B)False
Q2) Which statement is most likely true about the arrangement between Tupperware and Target?
A) Tupperware parties hosted in Target stores were as successful as private parties.
B) The social atmosphere of Tupperware parties held in private homes helped boost sales.
C) Tupperware increased its dealer network and customer base by hosting parties in Target.
D) The joint partnership between Target and Tupperware failed due to high distribution costs.
E) Tupperware's party format is rarely successful in societies where women work outside of the home.
Q3) What methods are used to close service gaps and cost gaps?
Q4) What is a pull strategy and what is its effect on brand equity? What are the advantages and disadvantages of using a pull strategy?
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Chapter 6: Retailing Structures and Strategies
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Q1) Leah is holding a party at her home for the purpose of demonstrating and selling Mary Kay cosmetics.Leah receives a 10% commission from Mary Kay for every sale she makes.Leah is most likely engaged in ________.
A) targeting
B) positioning
C) cold calling
D) direct selling
E) grey marketing
Q2) When determining a retail positioning strategy,what are the cost-side and demand-side decisions that must be made?
Q3) Roberto purchased an iPod at Best Buy and plans to download music that will keep him motivated while jogging.Which term best describes Roberto's transaction?
A) resale
B) retail sale
C) niche sale
D) direct sale
E) wholesale sale
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Chapter 7: Wholesaling Structures and Strategies
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Sample Questions
Q1) How do channel members benefit from joining federations?
Q2) According to the text,what was the primary reason for the consolidation of pharmaceutical wholesalers?
A) closure of small pharmacies
B) automation of picking tasks
C) research into new medications
D) deregulation by the government
E) investments by global organizations
Q3) Independent electronic exchanges rely on specialized software that allows bidders to submit progressively declining bids to win a customer's business.
A)True
B)False
Q4) Wholesalers are business establishments that sell products primarily to end-users but also to other businesses.
A)True
B)False
Q5) What is a master distributor? What functions do master distributors perform?
Q6) What have been the causes and effects of consolidation in the wholesale sector?
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Chapter 8: Franchising Structures and Strategies
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Q1) Multi-unit franchising is becoming increasingly common.Briefly explain the functionality and advantages of multi-unit franchising.
Q2) Kyle owns a Cars-To-Go franchise.Kyle's franchising contract stipulates that he must purchase the cars he rents from the national Cars-To-Go franchisor.What is the most likely reason that the franchisor makes this requirement?
A) give Kyle the right of first refusal
B) monitor rental agency's safety rates
C) ensure the quality of rental cars
D) lower Kyle's fixed franchise costs
E) create contract consistency
Q3) What is LEAST likely an advantage of franchise systems that include both company-owned outlets and franchisees?
A) testing new ideas
B) training employees
C) refining business formats
D) enforcing contract requirements
E) motivating both sides to improve
Q4) Differentiate between business format franchising and authorized franchise systems.
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Chapter 9: Emerging Channel Structures and Strategies
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Q1) What is the primary reason that many automobile manufacturers increased both dealership costs and service standards?
A) reduce heterogeneity among local car dealerships
B) encourage car buyers to purchase extended warranties
C) improve quality control at domestic automotive factories
D) discourage car dealers from selling multiple car brands
E) minimize the perishability of automotive inventories
Q2) Which of the following would LEAST likely help a manufacturer become a successful service provider?
A) creating a customer-centric organizational culture
B) forming deeper relationships with customers
C) gathering customer feedback and assessment
D) teaching channel members to sell services
E) investing in boundary spanning personnel
Q3) Discuss three major trends in the U.S.business environment that are affecting today's marketing channel structures and strategies.
Q4) Why are firms from developed markets increasingly expanding into developing markets? What role has the Internet played in these globalization efforts?
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11
Chapter 10: Managing Channel Power
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Q1) What was the primary cause of CNH Group losing market share?
A) CNH was ignoring the needs of its dealers.
B) CNH dealers were losing track of customer leads.
C) CNH offered customers a poorly designed website.
D) CNH was pricing its tractors higher than the competition.
E) CNH failed to invest adequately in tractor design and features.
Q2) The valence of a frame refers to whether it is ________.
A) conveyed to upstream or downstream intermediaries
B) communicated as an influence strategy
C) based on reward or referent power
D) dependent on certain conditions
E) presented as a positive or a negative
Q3) Power is best described as a(n)________.
A) cooperative arrangement
B) potential for influence
C) index of profitability
D) tough strategic tactic
E) act of free will
Q4) What is channel power? Why is channel power necessary?
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Chapter 11: Managing Channel Conflict
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Sample Questions
Q1) Channel conflict is best described as ________.
A) an unwanted state of opposition among organizations in a marketing channel
B) costly actions that should be viewed negatively in a marketing channel system
C) antagonistic situations that weaken relationships between marketing channel members
D) a situation that involves a struggle against obstacles in the marketing channel environment
E) behavior by a channel member that is in opposition to the wishes of its channel counterpart
Q2) In order for economic incentives to resolve conflicts,they must be used in conjunction with ________.
A) straight commissions
B) vertical integration
C) technological support
D) effective communication
E) cooptation activities
Q3) Gray marketing involves selling fake goods as branded ones.
A)True
B)False
Q4) Discuss the characteristics of three different conflict resolution styles.
Page 13
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Chapter 12: Managing Channel Relationships
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Q1) Relational governance,vertical quasi-integration,and strategic alliance are terms used to describe ________.
A) licensing agreements
B) organizational cultures
C) logistical partnerships
D) channel relationships
E) multinational enterprises
Q2) Daily interactions between individuals in the channel determine the level of trust in the channel relationship.
A)True
B)False
Q3) Burton Manufacturing wants to motivate downstream channel members to represent Burton products in new and current markets,but the firm does not want to build strong channel relationships.How can Burton most likely accomplish this goal?
A) Integrating vertically
B) Exerting reward power
C) Increasing internal sales
D) Utilizing coercive power
E) Outsourcing logistical efforts
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Page 14
Chapter 13: Managing Channel Policies and Legalities
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Q1) Under which of the following rules is a marketing policy automatically unlawful,regardless of any reasons,explanations,or implications?
A) Modified rule of reason
B) Territorial competition
C) Per se legality
D) Rule of reason
E) Per se illegality
Q2) Which term refers to marketing arrangements in which manufacturers reach end-users by employing multiple channels for the same basic product?
A) Dual distribution
B) Price squeezing
C) Internal expansion
D) Vertical integration
E) External expansion
Q3) Functional discounts are legal when they reasonably reflect the supplier's savings or channel member's costs.
A)True
B)False
Q4) What are the reasons that suppliers implement customer coverage policies?
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Chapter 14: Managing Channel Logistics
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Q1) What does Hau L.Lee recommend to improve the adaptability of a supply chain?
A) Practicing the equity principle
B) Forming a crisis management team
C) Focusing on the needs of current customers
D) Monitoring world economies to identify trends
E) Exchanging information within and across organizations
Q2) Which industry introduced quick response systems?
A) Grocery
B) Fashion retail
C) Automotive sales
D) Fast-food restaurants
E) Electronics refurbishment
Q3) How long does it usually take Zara to transfer a clothing design into physical product in a store?
A) 7 days
B) 15 days
C) 30 days
D) 45 days
E) 90 days
Q4) What are the similarities and differences between ECR and QR systems?
Page 16
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