UNIT

3
 retail establis
a largeconfines
: itof is which ding a
19. Departmental Stores its activities to sell one particular product
number of

20. Multiple Shops

:multiple shops reter to an
opened at different places in
organisation
one particular
management and dealing in similar lines
of
under
area or
000de
which a large
throughout thenumber
country
of dseipmairltamrerts ea

are also called Super Bazars and self- Under shops a

21. Super Markets : super Markets -service stores
Cert aA
Exercises

CBSE Textbook Questions with Answers

Knowledge Assessment 1
words.
Fill in the blanks with appropriate
is to bridge the gap between
1. The primary function of a distribution channel and
is a part of transaction functidn.
2. Buying, selling and
3. A ckose study of the is extremely essential. Asound marketing plan depends upon
4
study.
AcUstomer bought a product and has defect and post purchase service is desired by CUstormee .L
thorough mares
function of channel of distribution is performed.

5. Four paticipants of distribution system are manufacturers, intermediaries, facilitating agenciece sed
6. is also known as channel, distribution or intermediary.
7. It is important that the product is made at a place where the customer
8.
Would like to buy it
Middlemen are also involved in various activities like demonstration of product.
of function.
display and contest which form:
9. refers to the process of keeping the goods,
purchased trom different places, at a particuar nlwe
10. In
middlemen procure supplies of goods from a variety of sources, which is
nature and size and groups them in often not of samefae
homogenous groups.
Answers:
1.
Production and consumption 2. Risk bearning 3. Market
5. Consumers 4. Facilitating
6. Place 7. Available
9. Assembling 8. Product promotion
10. Sorting

Marketing-l!
 CaowledgeAssessment
for the following statements.
True or False
State channel can be defined as the activities and processes
bution
1. A distribut
required to move a product fromn the producer to
the consume

2. Distribution
channel intermediaries
are middlemen who play a crucial role in the
middlemen facilitate the distribution process
distribution process
3. These through their money and transportation.
agent actually gains ownership of the product and usually makes money from cornnissions and fees paid for
An their
4.
services.

5. Wholesalers are alsO independent entities who actually purchase goods from a producer in bulk and store them in
warehouses then goods are resold in smaller amounts at aprofit.

Wholesalers seldom sell directly to only end users.

6.
distributor carries products from a single brand or company.
7. A
has close relationship with the producer and consumer.
Adistributor
Dtailers stock the goods and sell them to the ultimate end user at a profit.
9. value to the product.
Detailers perform set of activities that add

Answers: 7. True
4. False 5 True 6. False
1. True 2. True 3. False
9. True 10. True
8. False

Knowledge Assessment 3
State True or False.
deals in large quantities and on a large scale.
1. Retailers
and varieties.
small number of items
2. Retailers handle a distribution.
of
Retailer is first point of contact in the chain
3.
to retailers and
industrial users.
4. Distributor sells
manufacturers/producers.
receive goods from
5. Retailers
wholesaler's shop is not very important.
6. Location of a wholesalers and retailers.
important for
1. Window display is equally is very tast.
very low margin of profit as turnover
8. Wholesalers sell at a wholesalers do.
after-sale service while
3. Ketailers do not provide
retailers.
Bazaar and Spencers are big chain of 7. False
1. big 5. False
6. True
Answers: 4. True
3 True
1. False 2. True
10. True
8. True 9. False

Knowledge Assessment 4
Multiple Choice Questions. and grading
1. Functions of wholesalers are: (b) Storing
the above
(a) Buying and selling (d) All of
(c) Packing and assembling
 to the sale of qoods or services to the
activities directly related
2. Retailing
consists of the sale and all
use
tirnate conume
(b) Non business
for personal,
(a) Business (d) None of above
the selection of channel of distribution are
(c) Both more factors that affet
based factors, few
with Producer (b) Market based
3. Along
(a) Product based
(d) All of above
(c) Middlemen based
type of reseller?
following is NOT considered a
4. Which of the (b) Retailer
(a) Wholesaler (d) Distributor
(c) Manufacturer
product decisions?
the following is NOT included in
5. Which of (b) Brand name
(a) Styling (d) Packaging
(c) Warehousing
retailer's end?
following takes place at
6. Which of the (c) Pricing (d) Exchange
Promotion (b) Placing
that affect the channel of distribution are:
Factors pertaining to product size
7. (b) Design, comfort,
size and weight
(a) Price. perishability,
(d) Both a and c
and technical nature
(c) After-sale services assortments lbrss
mix involves decisions regarding channels coverage,
of marketing
8. Which of the following 4Ps
inventories or transports? (d) Promotion
(b) Price
(c) Place
(a) Product
in "Exchange?
parties should be included
9. At least how many (c) Four
(d) Five
(a) Two
(b) Three
function of
10. 'Breaking the bulk' is (c) Both
(d) None
(a) Wholesaler (b) Retailer

Answers:
4, (c) Manufacturer
3. (d) All of above
2 (b) Non-business
1. (d) All of the above 8. (c) Place
(d) Exchange 7. (d) Both (a) and (c)
6
5. (c) Warehousing
10. (b) Retailer
9. (a) Two

Exercise Questions
importance as a part of marketing mix.
1. State the meaning of Place and its different intermediaries in channel of distributons
performed by
distribution? What are functions
2. What is channel of
choice of channels of distribution.
3. Explain the factors determining
physical distribution of products.
4. Explain the major activities involved in the
retailer. the arms
5. Differentiate between wholesaler and bottle of Coke within
put a
Cola the leading soft drink maker of the world wants and makes attempt to
6. Coca
reach of every consumer.
possible?
(a) How will Coca-Cola reach every consumer? Consumers as
product to as many
the accessibility of his
(b) Will attempt of manutacturer to maximise
distribution will Coca-Cola follow to maximise its accessibility?
(c) Which type of channel of
 Choosethe correct
Additional Questions with Answers
option.
1. Whatis an alternative term for a distribution channel?
(a) Marketing channel (1 Mark)
() Marketing chain (b) Supply chain
distribution channel (d) Place
type of
2. What involves the use of
(a) Direct channel (b) Indirect channel intermediaries such as
(c) Exclusive channel wholesalers and retailers? G)
distribution
3. In1which type of channel does a producer sell (d) Selective channel
(a) Indirect channel (b) Exclusive channel directly to the end consumer
(c) Selective channel without intermediaries?
manufacturer uses multiple (d) Direct channel
A When a channels to distribute the same product to
different customer segments, it is
(a) Exclusive distribution known
(b) Selective distribution
(c) Intensive distribution
(d) Direct distribution
rWhat is the primary function of intermediaries in the
distribution channel?
(a) Product development (b) Market research
(c) Facilitating exchange
.uhich intermediary function involves breaking down (d) Production
bulk quantities of products into
(a) Risk taking smaller units for resale?
(b) Sorting and
(c) Bulk breaking accumulating
(d) Financing
7 What term refers to
intermediaries holding inventories to reduce the time gap between production and
(a) Accumulating (b) Sorting (c) Storing
consumption?
8 (d) Financing
Wholesalers who take title to the products they sell and perform various
marketing functions are known as:
(a) Merchant Wholesalers (b) Agents (c) Brokers (d) Retailers
9. Cash-and-carry wholesalers are best described as:
(a) Limited-service wholesalers (b) Full-service wholesalers
() Drop shippers (d) Truck wholesalers
10. Aretail format where products are sold at discounted prices in large
quantities is known as:
(a) Depatment store (b) DisCount store (c) Specialty store (d) Convenience store
11. Which type of retailer offers a narrow product line with a deep assortment within that line?
(a) Specialty store (b) Supermarket
(c) Convenience store (d) Hypermarket
12 What type of retailer typically carries awide variety of product lines but with limited depth in each line?
(a) Department store (b) Supermarket () Hypermarket (d) Convenience store
13. The size and geographic dispersion of the target market is a factor that influences:
(a) Channel length (b) Intensity of distribution
(c) Channel width
(d) Channel integration
Ma product requires a high level of customer service, which factor becomes crucial in channel selection?
(a) Economic factors (b) Product characteristics
(c) Market characteristics (d) Competitive factors
wnen a firm wants to have control over its distribution channel, it may opt for:
(a) Intensive distribution (b) Exclusive distribution
(c) Selective distribution (d) Indirect distribution

lace Decision: Channels of Distribution

 channel 3 (d) Direct channel
2. (b) Indirect
Answers:
(a) Marketing channel exchange 6. () Bulk breaking
5. (c) Facilitating
1
() Selective distribution (a) Merchant wholesalers 9 (a) limited-service wholesaler.
8.
12. (a)
7. (a) Accumulating
11. (a) Specialty store
characteristics 15 (b) Department store
10. (b) Discount
length
store 14 (b) Product Exclusive distribution
13. (a) Channel
blanks.
II. Fill in the
channels involve the use
of intermediaries wholesalers and retailers
such
(1 Mard
consumer without internodis
1.
channel the producer sells directly to the
2. In a
services such as of the product influences the choice
Wholesalers often provide
3. indirect distribution channels. between direct ara
required for a product may affect the selection of distribution channels.
4. The level of
offering products at prices.
Discount retailers attract customers by
5. direct tand indirect distribution
influences the choice between
6 The of the product
channele
channels.
7. The level of.. required for a product may affect the selection of distribution
typically sell to rather than individual consumers.
8. Cash and carry wholesalersrefers to the conflict that may arise among different members of the distribution channe
9. Channel
examples of
intermediaries.
10. Aqents and brokers are
distribution channels is influenced by the level of
11. The choice between direct and indirect involved
12. Ina channel, a single intermediary is involved in the distribution process.
as getting the right. to the right place at the
13. Place or distribution, is often summed up right time
14. A is one ofa chain of shops that are individually wned but licensed by a larger company to sell s
expertise.
products (e.g. the Body Shop or Baskin Robbins). The larger company also provides
15 The use of different types of channel (e.g. high street stores as well as the internet) to reach the same potential targe
market is known as distribution.

Answers:
1. Indirect 2. Direct 3. Warehousing 4 Customer service
5. Lower or discounted 6. Nature and type 7. Customer service 8. Retailers

9. Conflict 10. Functional 11. Control 12. Single-level

13. Product 14. Franchise 15. Multichannel

III. State whether the following statements are True or False. (1 Mark
1. In marketing place is another term for location.
2. Asupply chain is a network of businesses and organisations through which goods pass to get to their final destinatien
3. The internet has opened up new channels of distribution.
4. One of the primary functions of packaging is to protect goods in transit.
5. Services cannot be exported.
6. Wholesalers only sell products to retailers and not
directly to consumers.
7. Retailers are part of the direct channel of
distribution.
8. Intermediaries play a role in bridging the gap
between producers and consumers.
9. The primary function of a retailer is to buy
products in bulk from wholesalers.
10. Direct distribution channels involve no
intermediaries between the producer and the consume
11. Wholesalers typically sell
products in small quantities to individual consumers.
 Adistributionchannel can include both online and offline channels
products by providing convenience to consumers
value to
Retailers add
3 Agentsandbrokers are
14
examples of intermediaries in distribution channels
distribution aims to make
15 Intensive
product available in as many outlets as
possible.
Fcommerceplatforms are an example of indirect distribution channels
reduce the number of transactions in the
Intermed1arneshelp distribution process
7 Eactors affecting the selection of the channel of
distribution include product characteristics, market conditions and
company resources
the distribution channel refers to the number of intermediaries involved between the producer and the
lengthof
19 The
consumer
20 The choice of distribution channel does not impact the overall marketing strategy of a company.

2 True 3 True 4 True 5. False

1 False 6. True
8. True 9. False
- False 10. True 11. False 12. True
14. True 15. True 16. True 17. True 18. True
13. True
19 True 20. False

V Short Answer Type Questions (2 Marks)

1 What is the significance of distribution in marketing?
2 How does a distribution channel add value to a product?
3. Why is effective distribution important for businesses?
4, Define direct and indirect distribution channels.
5. Provide an example of a company using an intensive distribution strateqy.
6. What role do intermediaries play in the distribution process?
How do wholesalers differ from retailers?
How do agents differ from distributors in the context of intermediaries?
9. What distinguishes retailers from other intermediaries?
10. How do retailers contribute to the marketing mix?
1. Name one internal factor that may influence the choice of a distribution channel.
ie How does product perishability affect the selection of a distribution channel?
13. Why is the size and buying power of the target market important in channel selection?
Gve an example of how competitive pressure can impact the channel of distribution.
3. Name three factors influencing the choice of
distribution channels.
V
Short Answer Type
Questions-ll
wnat does Place refer to in the context of marketing and
(3 Marks)
why is it important?
Name two characteristics that define a
3. List three distribution channel.
functions performed by channels of distribution in
merentiate between direct and indirect distribution
marketing.
5.
What role do channels.
Define two intermediaries play
6. in the distribution process?

. wO
characteristicsthat commonly associated with wholesalers.
characteristics distinauish wholesalers from other intermediaries
Ovide examples of two types of
 channel
wholesalers in the distribution
9. ldentity one primary function of the distribution channel)
from other members of
10 What distinguishes a retailer
attributed to retailers
characteristics commonly
11 Name two distibution process
performed by retailers in the
List two functions stores
12 retailers and department
13. Dfferentiate between specalty
retailer? Provide an example
4 What defines a large scale channel
nfluence the choice of a distribution
15 Name one internal factor that may
Questions
VI. Long Answer Type marketing mix (4 Maes
1 Explain the meaning and
importance of the PlaCe element in the
distribution
characteristics that define a channel of
2. DiscUss the key indirect chaneele
Explore the different types of distribution channels, includ1ng direct and
3
intermediaries perform in the distribution process How do intermedia
4 Examine the essental functions dares adte
success of the marketing strategy?
products and contribute to the overall
Discuss the various types of wholesalers, such as
merchant wholesalers, agents and brokere
5. HOw do
in the distribution prOcess wholesalers
Exanmine the functions performed by wholesalers
6

7.
efficiency of the supply chain and assist both producers
and retailers? ,contrite
Discuss the functions of retailers in the distribution channel. How do retailers S Contributee tothe marketing m and wae
to the

customer experience?
role do they play in enhancing the overall
8 Explore the different types of retailers, including specialty retailers,
discount retailers and online retailers
9. Examine the characteristics and functions of large-scale retailers
the selection of a distribution channel
10. Investigate the various factors that influence
VIL. Long Answer Type Questions-Il (5 Marks
1. Explore in detail the various functions pertormed by channels of distribution. How do these functions aid in the s
fiow of goods and services from producers to consumers?
2 Examine the crucial role intermediaries play in the distribution prOcess. How do
intermediaries contribute to the efße
and effectiveness of getting products to end consumers?
agents and soecialh
3. ProvIde an in-depth analysis of the various types of wholesalers, including merchant wholesalers,
and retailers?
wholesalers. How do the different types cater to the diverse needs of manufacturerS
contrnibute to the
4. Explore the functions that wholesalers perform in the distribution chain. How do these functions
efficiency of the overall supply chain and benefit both producers and retailers?
influence consumer
5. Discuss the key characteristics that distinguish retailers in the market. How do these characteristics
perceptions and choices when it comes to purchasing goods and services?
and
6. Provide a detailed exploration of the different types of retailers, including specialty retailers, department stores
discount retailers. How do these diverse retail formats cater to the varying needs and preferences of consumers?
factos
7. Explore the factors that businesses consider when selecting distribution channels, How do external and internal
infiuence the decision-making process and what strategic considerations are essential for optimizing channei selecton

Previous Years' Board Questions

(1 Mark)
I. Answer the following questions. CASE2020
1. ldentify the starting point of distribution from the following:
(a) Intermediaries (b) Facilitating agencies (c) Consumers (d) Manutacturers
CRSE2020
2. The mechanism through which goods move from the manutacturer to the consumer is
(a) Place (b) Product (c) Promotion (d) Price
 not end with selling of goods to the retailer?
Whosejob
does
(CBSE 2020)
(b) Manufacturers (c) Intermediaries
(a) Wholesalers (d) Facilitating agencies
bearing functions performed by channels of
selling and risk distribution cone under this category
Aving
Buym (C8SE SP 2018-19)
a Facilitatingunction (b) Transactional function (c) Logistical function (d) none of the abave

f middleman only carry complementary product lines (CBSE SP 2018-19)

typeof
This (b) Wholesaler (c) Distributor (d) Retailer
$
a) Agent
the Integrated Marketing Communication, the Promotion miK. ldentify it. (CBSE SP 2018-19)
6 ThisPincudes
a Promotion (b) Price (c) Price (d) Product
takes place between manufacturers and customers before closing a deal? (CBSE SP 2019-20)
7 What
(b) Financing () Grading (d) Maintenance
(a Negotiation
(CBSE SP 2019-20)
following is NOT considered a type of re-seller?
Which1 of the (d) Distritbutor
8
(a) Whole seller
(b) Manufacturer (c) Retailer
(CBSE SP 2019-20)
many parties should
be included in "Exchange"?
At least how (d) 5
(b) 3 (c) 4
(a) 2 (CBSE SP 2019-20)
affect the channel of distribution
are
.fstors pertaining to product that
(b) Design, comfort, size
Perishability, size and weight
a) Price, (d) Both (a) & (c)
services and technical nature
sales channel of
ic) After
organization is not financially sound. In this situation which
a shampoo, but your (CBSE SP 2020-21)
1 Vou are a manufacturer of
you?
Distribution is suitable for (b) Indirect channel
la) Direct channel
(d) None of these
can be used (CBSE SP 2020-21)
(c) Both channels
communication?
is not an example of noise in
12. Which
communicator and receiver talk one to one basis
(a) The information
identify a product and qives wrong
(b) The sales fails to
your offer
mail recipient is not interested in
(c) The direct
(CBSE SP 2020-21)
d) the entire abOve packing etc.
functions like buying, selling. packaging & (d) Facilitating Agents
Who out of the following perform various (c) Consumers
3 (b) Manufacturers
(a) Intermediaries different places at a particular place.
keeping the qoods purchased from (CBSE SP 2020-21)
14 refers to the process of
(d) Assembling
(c) Labeling (CBSE SP 2020-21)
(a) Sorting (b) Grading
(d) Wholesaler
single brand/company
12. Who carries products from a (CBSE SP 2022-23)
(b) Retailer () Agent
(a) Distributor
do not actually own them.
but (d) Retailer
16, The intermediary who takes possession of products (CBSE SP 2022-23)
(c) Agent
(a) Wholesalers (b) Industrial users
(d) Exchange
at retailer's end? (CBSESP2022-23)
Cn of the following take place (c) Pricing
(a) Promotion (b) Placing (d) Demand
17
Place in 4 P's means samne as. (c) Distribution
la) Promotion (b) People
 marketing mix because
an important part of the
18. Place is place to buy the product
Consumer must be in the right
(a) the right place
product must be ready for consumers in
(b) The place
should be in the right
(c) Advertising
be at right place
and at right time
(d) Consumer to
own
manufactures eyewear products and sells through its website to consumers Which
19. A company used by the company? othe rts
channels of distribution is being
(a) Producer-Retailer-Consumer (b) Producer-Consumer
(CBSE SP 2022-23,
(c) Producer-Wholesaler-Retailer-Consumer (d) Producer-Agent-Retailer-Consumer
actually own them
takes possession of products but do not
20. The intermediary who
(a) Wholesalers
(b) Industrial users (CBSE SP
(d) Retailer
(c) Agent
place at retailer"'s end? (C8SE SP 224
21. Which of the following take (d) Exchange
(a) Promotion (b) Placing (c) Pricing

22. Place in 4 P"'s means same as: (CBSE SP 20234

(b) People (c) Distribution (d) Demand
(a) Promotion
marketing mix because: (CBSE SP Z023-4
23. Place is an important part of the
product
(a) Consurmer must be in the right place to buy the
right place
(b) The product must be ready for consumers in the
(c) Advertising should be in the right place
(d) Consumer to be at right place and at right time
I. Very Short Answer Type Questions (1 Mart)
1. Define Distribution Channel. (CaSE 2022
2. Explain the transactional function of Channel of Distribution.
III. Short Answer Type Questions-l 2 Marts
1. Explain one-level channel of distribution.
(CBSE SP 20$
List any 2 functions of independently owned firms that take title to the merchandise they handle.
(C&SE SP 20'%9
3. Distinquish between wholesaler and retailer.
4. financing and
marketintmuto
The function of channels of distribution includes post purchase service and maintenance,
etc. ldentify the function performed and explain the same.
at oacesate
5. ldentify the function which is involved in the physical exchange of goods. What makes goods available
(C8SESP20"*."
buyers are located?
6. Who same
function of the(C&SE
undertakes the risk in the process of
distribution of goods and explain any other SP20s.
(CSSESPNNN
7.
Examine the role of middleman who deals on large scale in the
modern business.
8. What do you mean by direct
channel of distribution?
9. Who is an agent?
IV. Short Answer Type Questionss-ll
1. Describe the various functions performed by retailers antect
these
2 A chain of
intermediaries comprises a set of four system. Mate a list of
participants of distribution
them.
 tangible.and intangible is a
bundle of benefits, (CBSE SP 2020-21)
A (b) Service (c) Product
4
A Good (d) Benefit
service not be seen, touched, held or put on a shelf?
cana (CBSE SP 2020-21)
Why
) Omnipresent (b) No physical shape (c) Not accessible
did WhatsApp join Facebook?
Whichyear (CBSE SP 2020-21)
In (b) 2015 (c) 2013
lal2016 (d) 2014
troupe performs
a stage concert on two
Consecutive days at the same venue, for the same cost,
musICal with the
A
1 samemembers.However, their performance on the second day was far more
characteristic of
superior and vibrant than on the first day.
which services is highlighted.
identify (CBSE SP 2022-23, 2023-24)
(a)Perishability (b) Inseparability (c) Heterogeneity
(d) Intangibility.
is the main reason for difficulty in services of marketing. (CBSE SP 2022-23, 2023-24)
(a) Separability (b) Intangibility (c) Availability (d) Demand Supply Gap
to one Seqyential
is an nexample of which type of service? (CBSE SP 2022-23, 2023-24)
9 One
(al Video game (b) Classroom lecture (c) Counseling (d) Vending Machine

In marketing dictionary, SMM stands for (CBSE SP 2022-23, 2023-24)

la) Social Marketing Management (b) Social Management Marketing

(c) Social Media Marketing (d) Social Media Manipulation
Very Short Answer Type Questions (1 Mark)
How can a marketer ensure that the brand mark for her/his products and services is not copied by any other marketer?
(CBSE SP 2022-23)

2 What is meant by End-to-end encryption in the context of WhatsApp? (CBSE SP 2022-23, 2023-24)

Give the full form of "CRM". (CBSE SP 2022-23, 2023-24)

(CBSE SP 2022-23)
4 In which year did WhatsApp join Facebook?
5 ust any two characteristics of services. (CBSE 2022)

6 Define Online (CBSE 2022)

Marketing.
. Short Answer Type Questions-I (2 Marks)
(CBSE SP 2018-19)
1Explain any 2types of services.
(CBSE SP 2020-21)
Uscuss any two advantages of social media marketing. (CBSE SP 2020-21)
3
Defines service as defined by the American Marketing Association.
(CBSE SP 2020-21)
Cassify the types of services. (CBSE SP 2020-21)
S
DiscusS any two disadvantages of online marketing.
the light of the given
statement explain any
6 grow. In
Onine marketing creates many opportunities and challenqes to
(CBSE SP 2022-23,
2023-24)

o Challenges faced by marketers in online marketing. (CBSE 2022)

1

ShorDitf erAnswer
entiate Type Questions-ll
between goods and services. (3 Marks)
N (CBSE SP 2020-21)
1. (CBSE 2022)
Discuss the various advantages of online marketing. (CBSE 2022)
Highlieght any three types of digital marketing tools.
you understand by ema1l marketing?