30 Lecture - Wholesaling, retailing & physical distribution

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30 Lecture

MGT211

Midterm & Final Term Short Notes

Wholesaling, retailing & physical distribution

Wholesaling and retailing are two important components of the distribution process. Wholesaling involves selling goods in large quantities to retailers or other intermediaries who then sell the products to consumers. Retailing, on the other hand


Important Mcq's
Midterm & Finalterm Prepration
Past papers included

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  1. Which of the following is not a function of wholesalers? a) Bulk purchasing b) Transportation c) Product display d) Warehousing Answer: c) Product display

  2. Which of the following is a characteristic of retailing? a) Selling goods in large quantities b) Selling goods to intermediaries c) Selling goods directly to consumers d) Selling goods through e-commerce only Answer: c) Selling goods directly to consumers

  3. Which of the following is not a component of physical distribution? a) Transportation b) Inventory management c) Product display d) Order processing Answer: c) Product display

  4. Which of the following is not a type of retailer? a) Department store b) Convenience store c) Factory outlet d) Manufacturer Answer: d) Manufacturer

  5. Which of the following is not a function of retailers? a) Product display b) After-sales support c) Bulk purchasing d) Customer service Answer: c) Bulk purchasing

  6. Which of the following is not a benefit of effective physical distribution? a) Reduced costs b) Increased customer satisfaction c) Improved inventory management d) Decreased transportation efficiency Answer: d) Decreased transportation efficiency

  7. Which of the following is not a type of wholesaler? a) Merchant wholesaler b) Retailer c) Agent/broker d) Manufacturer's sales branch or office Answer: b) Retailer

  8. Which of the following is not a factor to consider when choosing a distribution channel? a) Target market b) Product characteristics c) Competitor's pricing d) Company's resources and capabilities Answer: c) Competitor's pricing

  9. Which of the following is not a type of physical distribution system? a) Direct distribution b) Indirect distribution c) Selective distribution d) Exclusionary distribution Answer: d) Exclusionary distribution

  10. Which of the following is not a benefit of using intermediaries in the distribution process? a) Increased market coverage b) Reduced costs c) Increased control over distribution d) Decreased customer satisfaction Answer: d) Decreased customer satisfaction



Subjective Short Notes
Midterm & Finalterm Prepration
Past papers included

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  1. What is the difference between a wholesaler and a retailer? Answer: A wholesaler is an intermediary that purchases products in bulk from manufacturers or other sources and resells them to retailers or other intermediaries. A retailer, on the other hand, purchases products in smaller quantities from wholesalers or directly from manufacturers and sells them to end consumers.

  2. What are the three main functions of a wholesaler? Answer: The three main functions of a wholesaler are bulk purchasing, warehousing, and transportation. Wholesalers purchase goods in large quantities, store them in warehouses, and transport them to retailers or other intermediaries.

  3. What is physical distribution and why is it important? Answer: Physical distribution is the process of delivering products from the manufacturer to the end consumer. It involves activities such as transportation, warehousing, inventory management, and order processing. Effective physical distribution is important because it can help reduce costs, improve customer satisfaction, and increase efficiency.

  4. What are the different types of retailers? Answer: The different types of retailers include department stores, specialty stores, supermarkets, convenience stores, discount stores, and online retailers.

  5. What is the difference between direct and indirect distribution? Answer: Direct distribution involves selling products directly to consumers, while indirect distribution involves using intermediaries such as wholesalers, retailers, or agents to distribute products to consumers.

  6. What is a channel of distribution? Answer: A channel of distribution is the path that a product takes from the manufacturer to the end consumer. It includes all of the intermediaries that are involved in the distribution process.

  7. What are the benefits of using intermediaries in the distribution process? Answer: The benefits of using intermediaries in the distribution process include increased market coverage, reduced costs, and improved efficiency. Intermediaries can also provide valuable services such as storage, transportation, and marketing.

  8. What is a physical distribution system? Answer: A physical distribution system is the network of activities that are involved in getting products from the manufacturer to the end consumer. It includes all of the processes and activities that are necessary for efficient and effective physical distribution.

  9. What is the difference between intensive, selective, and exclusive distribution? Answer: Intensive distribution involves selling products through as many outlets as possible, while selective distribution involves selling products through a limited number of outlets. Exclusive distribution involves selling products through a single outlet or a limited number of exclusive outlets.

  10. What are the different types of wholesalers? Answer: The different types of wholesalers include merchant wholesalers, brokers or agents, manufacturers' sales branches or offices, and import/export merchants.

Wholesaling, retailing, and physical distribution are three important components of the marketing mix that facilitate the movement of products from the manufacturer to the end consumer. Wholesalers are intermediaries that purchase products in bulk from manufacturers or other sources and resell them to retailers or other intermediaries. They provide several services, including bulk purchasing, warehousing, transportation, financing, and marketing support. By purchasing products in large quantities, wholesalers can negotiate lower prices and pass those savings onto retailers. Retailers, on the other hand, purchase products in smaller quantities from wholesalers or directly from manufacturers and sell them to end consumers. They come in various forms, including department stores, specialty stores, supermarkets, convenience stores, discount stores, and online retailers. Retailers provide a range of services, including product selection, merchandising, customer service, and promotion. Physical distribution is the process of delivering products from the manufacturer to the end consumer. It involves several activities, such as transportation, warehousing, inventory management, and order processing. Effective physical distribution is crucial for ensuring that products are delivered to the right place, at the right time, and in the right condition. It can also help reduce costs, improve customer satisfaction, and increase efficiency. The distribution mix refers to the various channels and intermediaries that are used to get products from the manufacturer to the end consumer. Direct distribution involves selling products directly to consumers, while indirect distribution involves using intermediaries such as wholesalers, retailers, or agents to distribute products to consumers. The choice of distribution strategy depends on various factors, such as the nature of the product, the target market, and the competition. In summary, wholesaling, retailing, and physical distribution are critical components of the marketing mix that play a crucial role in getting products to consumers. By understanding the various types of intermediaries and the different distribution strategies available, marketers can develop an effective distribution mix that meets the needs of their target market and maximizes their sales and profitability.

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