Managing retailing, wholesaling and market logistics : What is logistics management?

Correct Answer: No problem We can use network marketing as an alternative The company already has its strong network of customers who can spread the word about its products They can encourage referral rewards for say every three customers who will buy our product or avail our service We can also announce a contest for the customers to buy the product and win a chance to get himself broadcasted for the product advertisement We can ask them to send in their photo along with the contest application form which they get alongwith the product they buy So we don?t have to pay them as we would otherwise have to pay to a celebrity

Correct Answer: Depending upon the increase or decrease in price rates, buyers may respond accordingly Some buyers may assume that quality of the product may have reduced to to reduction in price or that the company may not be selling the product as per expectations The other assumption that buyers may make is that prices may go down in the future and so may delay purchase On the other hand increased price may lead to a decrease in demand as the product may be more costly for the consumers who may switch to another seller offering similar products at lower prices

Correct Answer: In the light of competition, it may be seen that competitors may initiate price changes If the cutting off on prices does not affect the company, then the current pricing strategy itself can be continued to maintain the profitability of the company However if the price change on one firm is affecting the other, then it can: areduce the product price at par with competitors? price or below competitors? price or b Provide added advantage to the existing product like better quality, or ?a buy one get one free? offer or cProvide better quality of the product at a higher price thereby not being at par with the competitors

Correct Answer: aUnderstanding the customer profile : the tastes,preferences, habits of the customers may differ from person to person bDetermining the objective as to who would be the target market, whether the company wants to go for cost minimisation or not etc cType of channel members :Who all would be involved? Wholesalers, retailers? dThe criteria on which the channel members would be evaluated and selected eHow many intermediaries will be involved in the overall distribution?

Correct Answer: These days channel members are being accepted by companies as their partners The intermediaries are even being asked to integrate their business with the companies which results in lesser costs, greater efficiency and improved customer service Corporates like Airtel are adopting PRM (Partner relationship management) software to give that added advantage to their supply chain They organise rewards and recognition programs for their channel partners and also organise proper channels though which partners can vent any of their grievances relating to payments, violation of codes etc

Correct Answer: aDirect interaction with customers: The retailer acts as the final link between the organisation and its customer The retailer knows his customer better than anyone He even suggests the customer what to purchase and allows him credit facilities to encourage frequent buying behaviour in the customer bSmall purchases: The customer purchases goods in small lots from the retail stores So there are frequent visits to the retail store by the customer cInstrument of marketing communication: via which information about the product is disseminated to the needy customers

Correct Answer: We can say that sales promotion is a cost effective technique by which an organisation can achieve its sales volume or the marketing objectives by providing value added product and not just an ordinary product to the end user or even the intermediaries It is short term by nature and is suitable enough for generating sales within a short span of time Sales promotion techniques are being increasingly used by retailing organisations some of which include advertising, providing discounts and allowances or a 'buy one get one free offer' etc

Correct Answer: Public relations includes promotional activities that work to create a strong public image of the company Public relations activities include helping the public to understand the company and its products Public relations if done right can reach a large audience without the expensive cost of traditional advertising and marketing

Correct Answer: In direct marketing, there is a direct interaction of the customers with the seller without any intermediaries Here, the role of the intermediaries is nil The medium used is more direct using telephone, mail, internet where the seller can directly reach out to the consumer Examples of such marketing include telemarketing, email, voicemail marketing, door-to-door selling etc This kind of marketing is more time saving as the problem of distance which may otherwise exist between the buyer and seller is eliminated and is also cost effective as it minimizes commuting costs

Correct Answer: Profitability control is a mechanism of monitoring the sales made, profits earned and expenditure incurred by a company The relative profit earning capacity of a firm?s products and consumer groups can be determined via profitability control Sometimes surpisingly, it may be found out by companies how a small proportion of their products and even customers actually account for a significant percentage of the company?s profits This can be achieved through profitability control At times when the companies earn surplus profits, then such profits may even be ploughed back or reinvested This also forms part of profitability control