11th Standard Syllabus & Materials
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Published on: 14/12/2019
Channels of Distribution
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Questions + Answers key
Take MCQ Commerce Test1.
Write a note on the following.
(a) Services distribution channels
(b) Channels based on National and International markets.
2.
3.
Explain the working of Auctioneers.
4.
The distribution of goods in small quantities to the consumers is called .............
Wholesale trade
Retail trade
Home trade
Cheap jacks
5.
Wholesaler's deals in ............. quantity of goods.
Small
Large
Medium
Limited
6.
Mr. X is studying the potential for selling for his company's products in USA. As part of his analysis, he is assessing the number, types and availability of wholesalers and retailers. Mr. X is studying the country's______
Social and Cultural norms
Legal and political structure
Distribution channel structure
Technological study
7.
Incase of auction, if no sale can take place below the minimum price fixed by the seller, is know as ______
Reserve price
Knocked down price
Highest bidder price
None
8.
The agent who guarantees to the principal for the collection of cash from credit sales is called _________-
Del-credere agents
Auctioneers
Warehouse - Keeper
Factors
9.
How the retailer helps in widening the market?
10.
What is price stabilisation contribution of wholesalers?
11.
How does a wholesaler provide market information to producer and retailers?
12.
What is meant by Mail-order Business?
13.
As a manufacturer how can you sell the goods to customer directly?
14.
Explain the services of wholesalers to manufacturer.
15.
Enumerates merchant wholesalers.
16.
Differentiate Wholesaler and Retailer.
17.
Write a note on VAR.
1.
(a) Services distribution channels:
Services can never be stored. A banking transaction or a mobile connectivity is created for the particular customer at the specific time. Mostly direct channel is operated by all producers through branches. Even in Information Technology (IT) companies, a software is created and modified to suit the customer's needs. Insurance companies have branches and employ agents to connect with policyholders. Producer's website is of greater use in connecting with the consumers in services marketing.
(b) Channels based on national and international markets:
The national or country level middlemen are already dealt with in detail in the previous paragraphs. The international distribution of goods and services consists of two subsystems. They are domestic distribution system and foreign distribution system. There are export merchants, export trading houses, export agents, state trading organisations, joint ventures, licensees, franchisees etc. performing the functions of middlemen.
2.
3.
(i) Auctioneers are agents who sell goods by Auction on behalf of their principals. Auction sale is made through a notification to the public.
(ii) The notice clearly mentioned the date, time, place clearly mentioned the date, time, place and details of goods which will be widely published through newspapers, posters, leaflets and announcements, etc.
(iii) Auction sale may be "with reserve" and "without reserve". In case of auction " with reserve" no sale can take place below the minimum price fixed by the seller, which is known as "reserve price".
(iv) In case of auction "without reserve" the auctioneer is bound to sell the product to the highest bidder. The price for which the bid is accepted is called "knocked down price".
(v) Striking a hammer on the desk indicates the acceptance of a bid by auctioneer. After the highest bid is accepted, the auctioneer becomes the agent for both the seller and the buyer.
(vi) For his services, the auctioneer is entitled to receive a commission, which is a certain percentage of the sale proceeds.
4.
(b)
Retail trade
5.
(b)
Large
6.
(c)
Distribution channel structure
7.
(a)
Reserve price
8.
(a)
Del-credere agents
9.
The retailers help in widening the size of the marked. He relieves the wholesaler from the burden of organising sales outlets to sell the goods: By way of window display, cash discounts on sales and by giving after-sale service, the retailer attracts a large number of buyers for his goods.
10.
Wholesalers stock goods during the harvest season and sell them during the peak demand period. In this way, he contributes in the stabilization of prices and violent fluctuations in prices are prevented.
11.
The wholesaler informs the producers about the changes in taste and fashion of consumers and at the same time he provides valuable market information to retailers about the quality and type of products available in the market.
12.
The manufacturer collects orders from the consumers through post or mail or phone and delivers the products themselves. This kind of business is known as Mail-order or Phone order business.
13.
Goods can be sold directly to customers through:
i) Opening own company show rooms or branches or through his sales team
ii) Mail - order business or phone order business
iii) E-Commerce
iv) Direct - marketing or multi level marketing
14.
The services of wholesalers to manufacturer are:
(i) Economies in large scale:
A wholesaler buys goods in bulk and, thereby, enables the producers to produce goods on a large scale. Large-scale production helps to reduce the cost of production per unit.
(ii) Assistance in distribution:
Wholesalers collect orders from a large number of retailers scattered over a wide area and buy goods in bulk from producers. He
enables producers to reach customers scattered over different parts of the country by distributing goods through retailers located in different areas. Therefore producer can concentrate only on production.
(iii) Warehousing facility:
A wholesaler holds large stock of goods in his private warehouse or in a rented warehouse. In this way he relieves the manufacturer from the function of warehousing.
(iv) Forecasting of demand:
A wholesaler collects information from retailers about the nature and extent of demand and passes it onto the producers and enables them to produce goods according to the needs, tastes and fashions prevailing in the market.
(v) Publicity of goods:
Often wholesalers launch advertising campaign to boost the demand for the goods. Producers get the benefit of such publicity and thus enabled to spend less on advertising.
(vi) Financial assistance:
A wholesaler often makes advance payments to producers. He buys the goods as soon as they are produced. Producers need not lock up their capital in maintaining huge stock of goods.
(viii) Risk-bearer:
A wholesaler provides a ready market to producers by placing advance orders and relieves the manufacturer from the risk of loss due to fluctuation in demand and storage of goods. He also reduces the risk by matching seasonal demand.
15.
Merchant wholesalers:
Merchant wholesalers are wholesalers who take title to the goods. They are also sometimes referred to as distributors, dealers, and jobbers. This category includes both full-service wholesalers and limited-service wholesalers. Full-service wholesalers perform a broad range of services for their customers, such as stocking inventories, operating warehouses, supplying credit to buyers, employing salespeople to assist customers, and delivering goods to customers.
(i) Limited- Service wholesalers offer fewer services to their customers but lower prices. They might n it offer delivery services, extend their customers credit, or have sales forces that actively call sellers. Small retailers often buy from cash-and-carry wholesalers to keep their prices as low as big retailers that get large discounts because of the huge volumes of goods they buy.
(ii) Drop shippers are another type of limited-service wholesaler. Although drop shippers take title to the goods, they don't actually take possession of them or handle them. They deal with goods that are large or bulky. Instead, they earn a commission by finding sellers and passing their orders over to the producers, who then ship them directly to the sellers. Mail-order wholesalers sell their products using catalogs instead of sales forces and then ship the products over to buyers.
(iii) Truck jobbers (or truck wholesalers) actually store products, which are often highly perishable (eg. fresh fish), on their trucks. The trucks make the rounds to customers, who inspect and select the products they want straight off the trucks.
(iv) Rack jobbers sell specialty products, such as books, hosiery, and magazines that they display on their own racks in stores. Rack jobbers retain the title to the goods while the merchandise remains physically in the stores for sale. Periodically, they take count of what's been sold off their racks 'and then bill the stores for those items.
16.
| Sl.No | Bases of Differences | Wholesaler | Retailer |
|---|---|---|---|
| 1 | Link | A wholesaler serves as a link between producers and retailers. Wbolesaler is the first link in the chain of distribution of goods | A retailer provides a link between wholesalers and consumers. retailer is the last link in the chain of distribution of goods |
| 2 | Scale of operations | A wholesaler carries on business on a large scale and requires huge capital | A retailer, deals generally on a small scale and capital invested in retail trade is relatively small |
| 3 | Range of goods | A wholesaler generally deals in one commodity | A retailer deals in II large variety goods and caters to the diverse needs of his end customers. |
| 4 | Dealings | A wholesaler generally sells goods to retailers on credit | A retailer usually sells goods to end consumers on cash basis |
| 5 | Purpose of selling | A wholesaler sells goods for resale | A retailer sells goods for ultimate consumption or use. |
| 6 | Source of supply | A wholesaler buys goods from manufacturers and their agents in large quantities. | A retailer generally buys goods from wholesalers and their agents in small quantities. |
| 7 | Location | A wholesaler operates his business in big commercial cities and expands his business to different areas. | A retailer operates in a smallest village and also big cities and locates his business in particular place of area. |
17.
The VARs receive the products from the manufacturers, incorporate them as if their own products by adding value enhanced service and sell them to customers. VARs provide highly skilled technical support so that the customer can have world class satisfaction. Microsoft India has appointed Avnet and Redington as VARs in India. A solar panel producer may. have builders as VARs and the builders offer solar panel as additional facility to the buyers of flats, etc
11th Standard Syllabus & Materials
11th Standard
TN 11th Tamil பீடு பெற நில் - செய்யுள் - காவடிச்சிந்து Important Questions And Answers Study Material - QB365 Set A
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Tamilnadu Stateboard 11th Standard Subjects

Maths

Commerce

Economics

Biology

Business Maths and Statistics

Accountancy

Computer Science

Physics

Chemistry

Maths

Biology

Economics

Physics

Chemistry

History

Business Maths and Statistics

Computer Science

Accountancy

Computer Applications

History

Computer Technology

Commerce

Computer Applications

Computer Technology

Tamil

English

French
Tamilnadu Stateboard Standards