PCM Distribution & Channel Management Flashcards

A distribution channel is best defined as:

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

A distribution channel encompasses all the people and organizations involved in the process of getting a product from the manufacturer to the final buyer.

Intensive distribution means a company aims to:

Answer: Make the product available in as many outlets as possible

Intensive distribution maximizes product availability and convenience, and is most appropriate for low-involvement, frequently purchased goods like candy or soda.

Exclusive distribution involves:

Answer: Partnering with only a limited number of carefully selected retailers

Exclusive distribution grants specific retailers sole rights to carry a product in a territory, often used by luxury or specialty brands to maintain image.

Selective distribution is best described as:

Answer: Using a moderate number of carefully chosen retail outlets

Selective distribution balances broad coverage with channel control, targeting outlets whose brand image and service quality match the product.

In a direct distribution channel, the manufacturer:

Answer: Sells directly to the final consumer without intermediaries

Direct distribution eliminates intermediary markups and gives the manufacturer full control over the customer experience and pricing.

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

Answer: A toy manufacturer selling through major retail chains and wholesalers

An indirect channel uses one or more intermediaries—such as wholesalers or retailers—between the manufacturer and the end consumer.