CMC CMC Sales & Channel Management 2 — Questions and Answers
Question 1: A company using an omnichannel strategy aims to:
- Focus all efforts on a single sales channel
- Provide a seamless customer experience across all channels (Correct answer)
- Reduce the number of retail partners
- Prioritize online sales over in-store sales
Correct answer: Provide a seamless customer experience across all channels
An omnichannel strategy integrates all sales and marketing channels to deliver a consistent, seamless customer experience regardless of the touchpoint.
Question 2: In B2B marketing, the role of a value-added reseller (VAR) is to:
- Sell products at discounted prices only
- Enhance a product with additional features or services before reselling (Correct answer)
- Handle only online transactions
- Manage customer complaints on behalf of manufacturers
Correct answer: Enhance a product with additional features or services before reselling
A VAR purchases products, enhances them with additional features or services, and resells them to end users at a higher value.
Question 3: Which of the following is an example of a pull strategy?
- Offering retailers volume discounts
- Running consumer-facing TV commercials to create demand (Correct answer)
- Providing wholesalers with co-op advertising funds
- Training distributor sales teams
Correct answer: Running consumer-facing TV commercials to create demand
A pull strategy creates consumer demand directly through advertising, which then pulls the product through the channel from retailer to manufacturer.
Question 4: What is the key advantage of intensive distribution?
- It ensures brand exclusivity
- It allows premium pricing
- It maximizes product availability and market coverage (Correct answer)
- It eliminates channel conflict
Correct answer: It maximizes product availability and market coverage
Intensive distribution places a product in as many outlets as possible, maximizing availability and market coverage to capture the broadest audience.
Question 5: A consultant evaluating a company's channel effectiveness would most likely analyze:
- Employee satisfaction scores
- Channel member sales performance and customer reach (Correct answer)
- Office space utilization rates
- IT infrastructure costs
Correct answer: Channel member sales performance and customer reach
Evaluating channel effectiveness focuses on how well channel members perform in sales results and their ability to reach target customers.
Question 6: Which type of intermediary takes title to goods and resells them at a profit?
- Broker
- Agent
- Merchant wholesaler (Correct answer)
- Manufacturer's representative
Correct answer: Merchant wholesaler
A merchant wholesaler takes legal title (ownership) of goods and earns profit by reselling them to retailers or other buyers at a markup.
CMC CMC Sales & Channel Management 2
A company using an omnichannel strategy aims to: