NIOS Class 10 Logistics & Supply Chain Management Chapter 22 Distribution Strategy

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NIOS Class 10 Logistics & Supply Chain Management Chapter 22 Distribution Strategy

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Logistics & Supply Chain Management Chapter 22 Distribution Strategy, NIOS Secondary Course Logistics & Supply Chain Management Solutions for All Chapters, You can practice these here.

Distribution Strategy

Chapter: 22

INTEXT QUESTIONS 22.1

1. This is the method or means by which a tourist supplier can reach out to potential customers.

(A) Distribution Channel.

(B) Distribution System.

(C) Networking System.

(D) Networking Channel.

Ans: (B) Distribution System.

2. According to Middleton, Each channel becomes a pipeline for the flow of sales to the target market once it is organised and serviced.

(A) Yes.

(B) No.

Ans: (A) Yes.

3. Intermediaries or middlemen, often known as the, facilitate and manage the flow of goods.

(A) Distribution Channel.

(B) Distribution System.

(C) Networking System.

(D) Networking Channel.

Ans: (A) Distribution Channel.

INTEXT QUESTIONS 22.2

1. Who is/are the ones who benefit from the intermediaries’ facilitation of their movements towards services.

(A) Suppliers.

(B) Service Providers.

(C) Customers.

(D) Middlemen.

Ans: (C) Customers.

2. Physical items are transported from the consumer to the producer via channel members.

(A) True.

(B) False.

Ans: (B) False.

3. A company’s distribution plan ensures that a product or service reaches the greatest number of potential customers at the lowest possible cost of.

(A) Production.

(B) Distribution.

(C) Marketing.

(D) Networking.

Ans: (B) Distribution.

INTEXT QUESTIONS 22.3

1. Indirect marketing will be a good strategy, When

(A) The buying frequency is Low.

(B) lLimited Number of Buyers.

(C) A company wants to share risk.

(D) The market is Intact.

Ans: (C) A company wants to share risk.

2. Expand ABAs.

(A) Applied Book Agency.

(B) Authorised Book Agents.

(C) Applied Behaviour Analysis.

(D) Authorised Behaviour Analysis.

Ans: (A) Applied Book Agency. 

3. The use of intermediaries is a part of the marketing strategy.

(A) Indirect.

(B) Intermediate.

(C) Direct

(D) Middlemen.

Ans: (A) Indirect.

INTEXT QUESTIONS 22.4

1. Distribution strategy is also influenced by

(A) Transportation and Logistics.

(B) Warehousing.

(C) Location of Business and Market.

(D) All of the Above.

Ans: (D) All of the Above.

2. According to the distribution plan, the product must reach potential when they are looking for it.

(A) Sellers.

(B) Distributors.

(C) Intermediates.

(D) Buyers.

Ans: (D) Buyers.

3. Without proper training the product would either fail to reach the target market on time or will be of poor quality.

(A) Transportation.

(B) Warehousing.

(C) Marketing.

(D) Sales Strategy.

Ans: (A) Transportation.

INTEXT QUESTIONS 22.5

1. When services are distributed through two intermediaries, then it is called as

(A) One level channel.

(B) Two level channel.

(C) Bi–channel.

(D) Multi Level Channel.

Ans: (B) Two level channel.

2. When the service is supplied directly to the customers.

(A) Single level channel.

(B) One level channel.

(C) Uni-level channel.

(D) None of the above.

Ans: (A) Single level channel.

3. In the Single level channel between the service provider and the service user, there is just one middleman.

(A) True.

(B) False.

Ans: (B) False.

INTEXT QUESTIONS 22.6

1. The concept describes the necessity for improved relationships with diverse groups involved in an organisation’s operation.

(A) Relations Marketing.

(B) Distribution Marketing.

(C) Performance Marketing.

(D) Supply Marketing.

Ans: (A) Relations Marketing.

2. For the main suppliers, channel decisions include a commitment.

(A) Short-term.

(B) Long-term.

(C) Organisational.

(D) Monetary.

Ans: (B) Long-term.

3. Finally, the performance of the intermediaries must be evaluated or assessed by the organisation.

(A) Yes.

(B) No.

(C) Maybe.

Ans: (A) Yes.

TERMINAL EXERCISE

1. Define Distribution.

Ans: According to Victor T C Middleton, “increases rather than diminishes the importance of the distribution process.” One of the primary approaches to regulate demand for extremely perishable products in marketing practice is to create and manipulate customer access.”

2. What is a DistributionStrategy?

Ans: Distribution strategy is the method used to bring products, goods and services to customers or end-users. You often gain repeat customers by ensuring an easy and effective way to get your goods and services to people, depending on the item and its distribution needs.

3. List out types of Distribution.

Ans: The types of Distribution are mentioned below:  

(i) Exclusive Distribution: When a manufacturer selects a few sales channels to generate exclusivity for an item or brand, such as luxury products or exotic vehicles, exclusive distribution is used.

(ii) Intensive Distribution: Intensive distribution occurs when a company attempts to break into a market by selling its products to as many sales outlets as possible in order to reach clients, most commonly for low-cost items like candy bars, household goods, and beverages.

(iii) Selective Distribution: Selective distribution is a hybrid of exclusive and intensive distribution, allowing you to sell a product in more places while remaining selective about which stores or partnerships to sell in, such as a high-end rug producer choosing a single retail department store to reach more customers.

4. What is Intensive Distribution?

Ans: Intensive distribution occurs when a company attempts to break into a market by selling its products to as many sales outlets as possible in order to reach clients, most commonly for low-cost items like candy bars, household goods, and beverages.

5. What is a DistributionChannel?

Ans: Distribution channels come in a variety of shapes and sizes, and an organisation can use any one, a mix of them, or all of them. All of this is dependent on the sort of service supplied by the company.

6. Distinguish the services distribution with goods distribution.

Ans: The services distribution with goods distribution.

Goods Distribution:

(i) Physical Products: Goods distribution involves the movement of tangible, physical products from manufacturers or producers to end consumers or businesses.

(ii) Physical Infrastructure: It typically requires a well- established physical infrastructure including warehouses, transportation vehicles (trucks, ships, planes), and distribution centres.

(iii) Inventory Management: Managing inventory levels is critical to goods distribution to ensure that products are available when and where they are needed without excessive overstocking.

Services Distribution:

(i) Intangible Offerings: Services distribution involves the delivery of intangible offerings such as expertise, advice, experiences, or performances to consumers or businesses.

(ii) Virtual Infrastructure: Unlike goods distribution, services distribution may rely more on virtual infrastructure such as online platforms, digital communication tools, and service delivery systems.

(iii) Human Resources: Services distribution often requires skilled human resources, such as consultants, technicians, or performers, who deliver the service directly to customers.

7. Pen down the need for distribution.

Ans: The need for distribution are: 

(i) Accessibility: Distribution ensures that products are accessible to consumers across different locations. By establishing a network of distribution channels, companies can reach a wider audience and make their products available where demand exists.

(ii) Market Expansion: Distribution enables businesses to expand their market reach beyond their immediate vicinity. Through wholesalers, retailers, and other intermediaries, companies can penetrate new geographical areas and tap into diverse customer bases.

(iii) Customer Convenience: Distributing products through various channels enhances customer convenience. Whether through physical stores, online platforms, or third-party retailers, customers can choose the most convenient way to access products, enhancing their overall shopping experience.

8. Explain the concept of Distribution Strategy.

Ans: A product or service’s distribution is a collection of procedures and organisations that make the product or service available to the final user. It refers to the movement of goods and services from the producer to the consumer. In fact, These characteristics have aided in the establishment of specialised distribution channels for tourism products and services. 

Certain critical characteristics of tourism distribution have been identified by Chris Cooper eta1:

(a) There isn’t even a physical thing being supplied.’ Only hints about the goods are provided through persuasion.”

(b) The method of distribution, the method of sale, and the setting in which the transaction is made all become part of the tourist experience.”

(c) In terms of distribution channels and direct delivery to clients, travel agents control the system by making their own decisions about what to display and recommend to customers, while producers play a crucial role in persuasive communication. 

There are also other types of distribution requirements. For example, no reservations are necessary for museums and monuments, but waiting is employed as a technique of allocating the available supply. In the case of railroads or aircraft, on the other hand, bookings are made in advance due to high demand or to assure that one receives a seat. Depending on the nature of the service product, the advance distribution procedure can take anywhere from 2 hours to 2 years or even longer. Intermediaries or middlemen, often known as the distribution channel, facilitate and manage the flow of goods. Bucklin described the distribution channel as “a group of institutions that conducts all of the operations (functions) used to move a product and its title from production to consumption” as early as 1966. Over time, service providers have felt compelled to solve the problem of making their products and services available to their target markets.

9. Discuss the various types of distribution.

Ans: The various types of distribution are: 

(i) Exclusive Distribution: When a manufacturer selects a few sales channels to generate exclusivity for an item or brand, such as luxury products or exotic vehicles, exclusive distribution is used.

(ii) Intensive Distribution: Intensive distribution occurs when a company attempts to break into a market by selling its products to as many sales outlets as possible in order to reach clients, most commonly for low-cost items like candy bars, household goods, and beverages.

(iii) Selective Distribution: Selective distribution is a hybrid of exclusive and intensive distribution, allowing you to sell a product in more places while remaining selective about which stores or partnerships to sell in, such as a high-end rug producer choosing a single retail department store to reach more customers.

10. Explain the various forms of distribution channels.

Ans: The various forms of distribution channels are: 

(i) Single Level Channel: The service is supplied directly to the customers here. For example, airlines may buy tickets directly for customers, and hotels may book rooms directly for guests.

(ii) One Level Channel: It suggests that only one type or category of middlemen is utilised at a single level. 

(iii) Two Level Channel: In this situation, services are distributed through two middlemen. GSA and travel agents, for example, are two levels of distribution channels in the airline industry.

(iv) Multi Level Channel: In the service sector, more than two types of intermediaries are frequently utilised at the same time, which is especially true in the tourist and trawl industries. For example, hotels, attractions, and carriers may offer their services to incentive travel planners, who then market the services to convention meeting planners or corporate travel managers. A wholesale tour planner, on the other hand, sells it’s their services to travel agents and tour operators.

11. Enumerate the importance of distribution strategy.

Ans: A company’s distribution plan ensures that a product or service reaches the greatest number of potential customers at the lowest possible cost of distribution. A solid distribution strategy can increase your sales and profits, but a bad or haphazard distribution strategy can result in not only losses, but also in competitors taking advantage of the market opportunity you generated. Procurement, storage, shipping, servicing, finance, and counselling are just a few of the functions that these distribution channel members do. Physical items are transported from the producer to the consumer via channel members. Service distribution, on the other hand, is vastly different from that of products. In fact, unlike things, services do not pass through the hands of customers. The Customers are the ones who benefit from the intermediaries’ facilitation of their movements towards services. In the distribution of services, there is no physical movement or transfer of ownership. The body of ‘knowledge’ available today.

Goods Distribution:

(a) Goods are moved physically.

(b) The ownership of the channel is transferred to the channel members.

(c) Profit from reselling.

(d) The product is moving closer to the customer.

(e) The product manufacturing plant has also been relocated closer to the market.

Services Distribution:

(a) There is no actual movement of services.

(b)The service provider retains ownership.

(c) Commission earned from sales.

(d) Consumers are gravitating toward services.

(e) Suppliers of services bring services closer to the market.

12. Elucidate the factors affecting the distribution strategy.

Ans: The factors affecting the distribution strategy are: 

(i) Location of Business: This is a critical consideration when deciding on a distribution plan. If the firm is located in an area where distribution is easily accomplished, such as near a port or railway lines, we can rely on that means of distribution and save money.

(ii) Location of Target Market: The manufacturer /distributor /retailer now distributes to the final client. If the end client is in a specific place or is dealing with similar products there, The distribution plan must account for that. If the target market is professionals, the product should be provided near or inside offices through partnerships, ensuring that the product is available where it is needed.

(iii) Reaching the Target Market: A product’s ultimate purpose is to reach the intended audience when it is needed. The product must reach potential buyers when they are looking for it, according to the distribution plan. During the summer, for example, a beverage business would ensure that it is available in sufficient quantities in all retail outlets. Warehousing When deciding on a distribution strategy, properly keeping material in appropriate. locations are critical.

Inventory management and warehousing come into play.

(iv) Transportation and Logistics: One of the most critical aspects of a distribution plan is transportation. Without proper transportation, the product would either fail to reach the target market on time or will be of poor quality.For example, if a corporation deals in frozen items, it must ensure that transportation and logistics take care of it through cold storage and temperature control.

13. Discuss the selection of distribution channels and intermediaries.

Ans: The selection of distribution channels and intermediaries are mentioned are below: 

(a) Desired distribution intensity.

(b) End-user accessibility

(c)  Distribution practises that are currently in use.

(d) Cost Analysis, Revenue.

(e) The amount of time it takes for a channel to develop.

(f) Desired level of control.

(g) Participant availability in the channel.

(h) Choosing the best middleman.

(i) Participant’s ability to participate in the channel.

(j) Participant in the channel provides customer service.

(k) Desired geographic coverage.

(l)The channel participant’s market position. and

(m) The channel participant’s financial situation, etc.