1. Explain each of these concepts: logistics, value delivery chain, and just in
ID: 384068 • Letter: 1
Question
1. Explain each of these concepts: logistics, value delivery chain, and just in time (JIT) inventory management. Why are the terms important?
2. What is a channel of distribution? What are the pros and cons of an indirect channel of distribution? When should a firm NOT use an indirect channel?
3. Distinguish among a merchant wholesaler, a food broker, and a manufacturer wholesaler.
4. What are the four basic functions provided by retailers? Be complete.
5. What is a retail franchise? (b) What is scrambled merchandising?.
6. Cite at least four distinct goals of promotion.
7. Describe the steps in the communication process.
8. Distinguish between public relations, sales promotion, and advertising.
9. Explain each of these promotion restrictions: media access, full disclosure, and substantiation.
10. Distinguish among cost-based, competition-based, and demand-based pricing. What pricing orientation do the best firms follow?
11.What factors determine whether demand for a product is elastic or inelastic? How does a consumer’s subjective price affect elasticity?
12. Government policies have a strong impact on companies’ pricing decisions. Discuss the implications of government restrictions with regard to each of these practices: horizontal price fixing, price discrimination in selling to two competing retailers, predatory pricing, and price advertising.
Explanation / Answer
Logistics is the implementation of complex organization in a detailed manner. It is the management of the flow of things from the point of origin and consumption. The aim is to meet the essential requirements of customers or corporations.
Value delivery chain is a chain of system wherein there is more value added after each system for the product or service. This increases the overall value for the customer. Every system does partnership with another system for providing better value for the customer.
Just in time is an important inventory strategy that is employed by the companies for increasing the efficiency and decreasing the wastage. This is done by receiving only the goods that are needed for the production process. This helps to reduce the inventory cost. This also helps the producers for forecasting the demand in an accurate way.
2. Channel of disturbing ion is a chain of intermediaries or businesses which helps goods or services to pass until it reaches effectively to the end customer. This includes wholesalers, retailers, distributors and the Internet too.
POSITIVEST
The expertise is broad with active network
It has good relationships with the customers and competitive intelligence
It has minimal distribution costs
It has established channel and quick access for market and sales people
NEGATIVES
It is independent and can be difficult for controlling.
It has expensive commissions and can be difficult for training
It has lack of product knowledge and there can be issues related to direct customer contact.
3.
Merchant wholesaler is an important entity that makes product purchase and takes title of them then sells it further to retailers and other wholesalers.
food broker represent food brands and help in getting products on the shelves in a competitive supermarket price and specialty environment of retail.
4. Retailer performs several functions and the basic ones have been listed below
Buying:
Various goods from different wholesalers are bought by the retailer after estimation of customer demand. The best merchandise are selected from them..
2. Storage:
A steady and effective stock of goods is maintained by the retailer and displayed in the shop.
3. Selling:
Goods are sold in small quantities by the retailer based on the demand and choice of the customer. There are various methods employed for increasing the sales turnover.
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