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An arrangement whereby a firm reaches different buyers by employing two or more

ID: 467196 • Letter: A

Question

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as. a. a strategic channel alliance b. multiple level selling c. parallel distribution d. dual distribution e. multi layered distribution Answer: Vertical marketing systems refers to a. professionally managed geographically dispersed marketing channels designed to achieve channel economies and maximize marketing impact. b. professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. c. retailer-sponsored cooperates where small, independent retailers form an organization that operates a wholesale facility cooperatively. d. professionally managed geographically dispersed marketing channels that are controlled through strategic channel alliances. e. channel partnerships that share responsibility for ordering and physically distributing each other's products. Answer: The density of distribution whereby a firm tries to place its products or services in as many outlets as possible is referred to as. a. intensive distribution b. extensive distribution c. selective distribution d. exclusive distribution

Explanation / Answer

Answer of Q 36: (d) Dual Distribution

Dual Distribution: When a company deploys more than one channel to reach the end user then it is termed as dual distribution

Multi-layered distribution: Multiple intermediaries involved between manufacturer & customer. It is highly utilized in large developing countries like India.

Strategic channel alliance: Partnership between manufacturer & distribution to gain some strategic advantage over competitors. Eg. Lenovo makes strategic alliance with amazon.in to sell newly launched mobile phones exclusively on its website & in return amazon.in will advertise about Lenovo products.

Answer of Q 37: (c) Retailer sponsored cooperatives

Vertical marketing system: Members across vertical supply chain build partnership & work together as a single unit to deliver the right product in right quantity & quality to the right customer on right time. These supply chain members may be any of these - supplier, manufacturer, CFAs, distributors, stockiest, wholesaler & retailers.

Retailers work as an individual unit while selling the product to individual customers but they are partnered together to form the cooperative wholesale facility in order to achieve the efficiency.

Answer of Q 37: (a) Intensive Distribution

Intensive distribution: It aims to achieve product saturation in market by employing all the available outlets.

Selective distribution: Selling product through a limited number of outlets like a few retailers/wholesalers.

Exclusive distribution: Selling product through only specific outlets like Lenovo selling it new launched mobiles only through amazon.com.

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