MKT 300 Exam questions and
answers well graded A+
Marketing channel - ANS✅✅A set of institutions that transfer the ownership of and move goods
from the point of production to the point of consumption.
Downstream flow - ANS✅✅Movement of products and information from suppliers to customers.
Upstream flow - ANS✅✅Movement of returns, customer information, and recycled materials back
toward manufacturers.
Intensive distribution - ANS✅✅Distributes products in as many outlets as possible (e.g., soft
drinks, snacks).
Selective distribution - ANS✅✅Limited distribution to maintain brand image (e.g., clothing brands,
electronics).
Exclusive distribution - ANS✅✅One or few retailers per region for premium control (e.g., luxury
brands, automobiles).
Safety stock - ANS✅✅Extra inventory kept to prevent stockouts due to unexpected demand spikes
or supply chain delays.
Costs of carrying too much inventory - ANS✅✅Storage costs, obsolescence, shrinkage (theft/loss),
depreciation, insurance expenses.
Stockouts - ANS✅✅Lost sales, customer dissatisfaction, rush order costs, reduced brand loyalty.
Reorder point - ANS✅✅The inventory level at which a new order should be placed. Depends on
lead time, average usage rate, and safety stock levels.
Private warehouse - ANS✅✅Owned by a company, higher control but costly.
, Public warehouse - ANS✅✅Rented space, lower cost but limited control.
Distribution center - ANS✅✅A warehouse that stores and redistributes products efficiently.
Functions include inventory storage, order fulfillment, cross-docking.
Air transportation - ANS✅✅Fastest, most expensive, limited capacity.
Truck transportation - ANS✅✅High flexibility, moderate cost.
Rail transportation - ANS✅✅Cost-effective for bulk shipments, slower.
Water transportation - ANS✅✅Cheapest for international shipping, very slow.
Pipeline transportation - ANS✅✅Used for liquids, low cost, very specialized.
Primary sources of value for retailers - ANS✅✅Convenience, selection, service, experience, price
savings.
Major categories of retailers - ANS✅✅Department stores (Macy's), specialty stores (Apple Store),
supermarkets (Kroger), convenience stores (7-Eleven), discount stores (Walmart), category killers
(Best Buy), off-price retailers (TJ Maxx).
Primary considerations for locating brick-and-mortar stores - ANS✅✅Foot traffic, visibility,
accessibility, demographics, competition, rent cost.
Secondary market for merchandise - ANS✅✅The resale of excess or returned goods at discount
retailers, liquidation stores, or outlets.
Category management in retailing - ANS✅✅A retail strategy where a supplier manages a category
of products to optimize sales and profitability (e.g., Procter & Gamble managing a store's cleaning
supplies).
Franchising as a business model - ANS✅✅Franchisor: Owns the brand, provides support and brand
marketing. Franchisee: Operates the business under franchisor's guidelines and pays fees.
answers well graded A+
Marketing channel - ANS✅✅A set of institutions that transfer the ownership of and move goods
from the point of production to the point of consumption.
Downstream flow - ANS✅✅Movement of products and information from suppliers to customers.
Upstream flow - ANS✅✅Movement of returns, customer information, and recycled materials back
toward manufacturers.
Intensive distribution - ANS✅✅Distributes products in as many outlets as possible (e.g., soft
drinks, snacks).
Selective distribution - ANS✅✅Limited distribution to maintain brand image (e.g., clothing brands,
electronics).
Exclusive distribution - ANS✅✅One or few retailers per region for premium control (e.g., luxury
brands, automobiles).
Safety stock - ANS✅✅Extra inventory kept to prevent stockouts due to unexpected demand spikes
or supply chain delays.
Costs of carrying too much inventory - ANS✅✅Storage costs, obsolescence, shrinkage (theft/loss),
depreciation, insurance expenses.
Stockouts - ANS✅✅Lost sales, customer dissatisfaction, rush order costs, reduced brand loyalty.
Reorder point - ANS✅✅The inventory level at which a new order should be placed. Depends on
lead time, average usage rate, and safety stock levels.
Private warehouse - ANS✅✅Owned by a company, higher control but costly.
, Public warehouse - ANS✅✅Rented space, lower cost but limited control.
Distribution center - ANS✅✅A warehouse that stores and redistributes products efficiently.
Functions include inventory storage, order fulfillment, cross-docking.
Air transportation - ANS✅✅Fastest, most expensive, limited capacity.
Truck transportation - ANS✅✅High flexibility, moderate cost.
Rail transportation - ANS✅✅Cost-effective for bulk shipments, slower.
Water transportation - ANS✅✅Cheapest for international shipping, very slow.
Pipeline transportation - ANS✅✅Used for liquids, low cost, very specialized.
Primary sources of value for retailers - ANS✅✅Convenience, selection, service, experience, price
savings.
Major categories of retailers - ANS✅✅Department stores (Macy's), specialty stores (Apple Store),
supermarkets (Kroger), convenience stores (7-Eleven), discount stores (Walmart), category killers
(Best Buy), off-price retailers (TJ Maxx).
Primary considerations for locating brick-and-mortar stores - ANS✅✅Foot traffic, visibility,
accessibility, demographics, competition, rent cost.
Secondary market for merchandise - ANS✅✅The resale of excess or returned goods at discount
retailers, liquidation stores, or outlets.
Category management in retailing - ANS✅✅A retail strategy where a supplier manages a category
of products to optimize sales and profitability (e.g., Procter & Gamble managing a store's cleaning
supplies).
Franchising as a business model - ANS✅✅Franchisor: Owns the brand, provides support and brand
marketing. Franchisee: Operates the business under franchisor's guidelines and pays fees.
