IDIS 340 Final 115 Questions and Correct Answers
100% Verified 2024/2025
What is distribution? - Correct Answer Distribution is the activity of both selling and delivering products and services from manufacturer to the customer.
Manfactuerer's Agent - Correct Answer - Usually represent companies whose sales in a territory do not support a full salaried employee
- May call on distributors, end users, specifiers, and manufacturers
- Complementary products
- Do not typically stock inventory
- May also be referred to as a manufacturer rep or agent (agency)
Manufacturers' agents or representatives are independent contractors.
They work on commission to sell products for more than one manufacturer.
They are not under the immediate supervision of the manufacturers (principals) for whom they sell.
The relationship generally falls into client-customer patterns.
Manufacturers' agent firms range from businesses operated by a sole entrepreneur to considerably more extensive organizations armed with numerous salespeople covering specific territories.
Key value add is that they are generally paid on commission, thus if there are not sales, there are no costs.
There are no fixed costs to bring them on board.
They generally offer compatible—but not competing—products to the same industry. Product knowledge
Market knowledge
Negotiation skills
Teaching skills
Interpersonal skills
Master Distributor - Correct Answer - Common in industries with heavy logistical requirements
- Stock products of represented manufacturers
- Only sells to distributors, not end users
- Typically, complementary products
May also be referred to as a wholesaler
- May also function as a manufacturers agent
A master distributor is a wholesale distributor who sells
product to resellers (wholesalers). They have direct
relationships with brand owners who recognize them as
exclusive distributors of their product.
Distribution Competitive Advantage - Correct Answer - Cost structure
- Branding
- Qulaity of product offerings
- Distribution network - Intellectual property
- Customer service
6 trends impacting the Distribution Industry - Correct Answer - Worker Shortage
- Just-in-time will not return
- Distributors will demand increase transperancy and alignment
- Distributors will invest in higher-speed digital transfermations
- Will come will steep learning curve Cost - Correct Answer What you pay for an item
Price - Correct Answer What your customer pays for an item
Margin - Correct Answer sales - cost of goods sold (COGS)
Markup - Correct Answer amount by which the cost of a product is increased to the desired selling price
Structural differences - Correct Answer Manufacturer
- High vlaue on brand recognition and percieved product quality
- High fixed cost
- Signifcant need for volume
- High market share is an extreme predictor of profitability
Distributor
- Less value on brand and quality and more value to customer relationships
- high variable cost
- Less need for volume
- Market share less of a predictor of profitability
Distributor Compensation - Correct Answer - Extended payment terms
- Cash discounts
- Consignmments - Stock rotations and return allowances
- Cooperative and market development funds
- Special pricing agreements
- Volume incentives
3 C's of pricing - Correct Answer - Cost
100% Verified 2024/2025
What is distribution? - Correct Answer Distribution is the activity of both selling and delivering products and services from manufacturer to the customer.
Manfactuerer's Agent - Correct Answer - Usually represent companies whose sales in a territory do not support a full salaried employee
- May call on distributors, end users, specifiers, and manufacturers
- Complementary products
- Do not typically stock inventory
- May also be referred to as a manufacturer rep or agent (agency)
Manufacturers' agents or representatives are independent contractors.
They work on commission to sell products for more than one manufacturer.
They are not under the immediate supervision of the manufacturers (principals) for whom they sell.
The relationship generally falls into client-customer patterns.
Manufacturers' agent firms range from businesses operated by a sole entrepreneur to considerably more extensive organizations armed with numerous salespeople covering specific territories.
Key value add is that they are generally paid on commission, thus if there are not sales, there are no costs.
There are no fixed costs to bring them on board.
They generally offer compatible—but not competing—products to the same industry. Product knowledge
Market knowledge
Negotiation skills
Teaching skills
Interpersonal skills
Master Distributor - Correct Answer - Common in industries with heavy logistical requirements
- Stock products of represented manufacturers
- Only sells to distributors, not end users
- Typically, complementary products
May also be referred to as a wholesaler
- May also function as a manufacturers agent
A master distributor is a wholesale distributor who sells
product to resellers (wholesalers). They have direct
relationships with brand owners who recognize them as
exclusive distributors of their product.
Distribution Competitive Advantage - Correct Answer - Cost structure
- Branding
- Qulaity of product offerings
- Distribution network - Intellectual property
- Customer service
6 trends impacting the Distribution Industry - Correct Answer - Worker Shortage
- Just-in-time will not return
- Distributors will demand increase transperancy and alignment
- Distributors will invest in higher-speed digital transfermations
- Will come will steep learning curve Cost - Correct Answer What you pay for an item
Price - Correct Answer What your customer pays for an item
Margin - Correct Answer sales - cost of goods sold (COGS)
Markup - Correct Answer amount by which the cost of a product is increased to the desired selling price
Structural differences - Correct Answer Manufacturer
- High vlaue on brand recognition and percieved product quality
- High fixed cost
- Signifcant need for volume
- High market share is an extreme predictor of profitability
Distributor
- Less value on brand and quality and more value to customer relationships
- high variable cost
- Less need for volume
- Market share less of a predictor of profitability
Distributor Compensation - Correct Answer - Extended payment terms
- Cash discounts
- Consignmments - Stock rotations and return allowances
- Cooperative and market development funds
- Special pricing agreements
- Volume incentives
3 C's of pricing - Correct Answer - Cost
