PCM PCM Distribution & Channel Management

Question 1

A distribution channel is best defined as:

Accepted Answer

The set of intermediaries through which a product moves from producer to end consumer

Answer

A company's internal sales force structure

Answer

The logistics software used to track shipments

Answer

The social media platforms used to promote a product

Question 2

Intensive distribution means a company aims to:

Accepted Answer

Make the product available in as many outlets as possible

Answer

Sell only through company-owned stores

Answer

Limit sales to a single exclusive retailer

Answer

Focus distribution on premium retail locations only

Question 3

Exclusive distribution involves:

Accepted Answer

Partnering with only a limited number of carefully selected retailers

Answer

Selling through every available outlet to maximize reach

Answer

Distributing products only in specific geographic zones

Answer

Using only direct-to-consumer online channels

Question 4

Selective distribution is best described as:

Accepted Answer

Using a moderate number of carefully chosen retail outlets

Answer

Selling through all possible intermediaries simultaneously

Answer

Restricting sales to one retailer per market

Answer

Selling exclusively through the company's own website

Question 5

In a direct distribution channel, the manufacturer:

Accepted Answer

Sells directly to the final consumer without intermediaries

Answer

Sells exclusively to wholesalers

Answer

Relies on agents to contact end users

Answer

Licenses another company to handle all sales

Question 6

Which of the following is an example of an indirect distribution channel?

Accepted Answer

A toy manufacturer selling through major retail chains and wholesalers

Answer

A craft brewery selling beer only at its taproom

Answer

A software company selling subscriptions through its own website

Answer

A farmer selling produce directly at a farmers market