The Choice of the Channel

Q.

Do perishable goods have a higher elasticity of supply?

Q.

Distinguish between the 'product' concept and the 'production' concept in marketing keeping the following as the basis -(a) Focus, (b) Means and (c) End.

Q.

A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisation structure with separate departments for production, marketing, finance, human resources and research and development. Lately, to use its brand name and also to cash on to new business opportunities, it is thinking to diversify into manufacture of the new range of electronic toys for which a new market is emerging.

Prepare a report regarding organisation structure giving concrete reasons with regard to benefits the company will derive from the steps it should take.

Q.

What does chain store mean?

Q.

Factors affecting business environment like economic conditions or legal constraints affect the choice of distribution channels. State true or false.

1. True

2. False

Q.

The two main company characteristics that affect the choice of distribution channels are – financial strength of the company and the degree of control it wants to hold on the channel members. State true or false.

1. True

2. False

Q.

Nandrachal Networks and Technologies Ltd. is a leader in technology innovation in U.S.A. creating products and solutions for a connected world. It has a large Research and Development team which invented the first smart watch W-I, which besides showing the time would also monitor few health parameters like heart beat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the fact that licensing requirements had been abolished. The company was also aware that there had been increased level of interaction and interdependence among the various nations of the world and India could be made a base for its international trade. It set up its office in Gujarat with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefitting the customers.

(a) In the above paragraph, two major concepts related to government policy have been discussed.

(b) Also, explain briefly any three impacts of those concepts on Indian business and industry.

Q. Three Mark Questions:-
Briefly explain any three factors that affect the channels of distribution of a commodity.

Q. Answer the following.

What are the advantages and disadvantages of e-business?

Q. In the case of perishable goods direct channel of distribution is used for physical distribution of the product.

1. True
2. False

Q. A complex product which requires technical knowledge is distributed through a direct channel of distribution.

1. True
2. False

Q. In a depressed economy, marketers use longer channels to distribute their goods.

1. True
2. False