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2. Check your understanding of the subject – matter by answering these questions.

1.

What is a marketing channel?

2.

What are the two major types of marketing intermediaries?

3.

What does the term “vertical integration” mean?

4.

What is the essence of wholesaling?

5.

Which functions do wholesalers perform?

6.

What is the essence of retailing?

7.

Can you outline the activities retailers perform?

8.

What are the major considerations in retail planning?

9.

What is the role of physical distribution?

10.

What are the components of physical distribution?

When you have answered the questions, find a partner in your group and swap the information.

III. Comprehension and Word Study

1. Get sure you remember the following words and word combinations.

transportation, warehouse showroom, convenience store, atmosphere, wholesaling, in-home selling, specialty store, service standard, physical distribution, supermarket, retailing, exclusive distribution, agent, contractual VMS, department store, selective distribution, materials handling, order processing.

Now complete the following sentences from the list of the words above.

1.

____________________ refers to the physical handling of products during transportation and warehousing.

2.

A ____________________ is a large retailer organized into separate departments and offering a full line of services and wide product mix.

3.

A marketing channel in which organizations’ relationships are formalized through legal agreements is a ____________________ .

4.

____________________ refers to nonstore retailing activities that involve personal contact with consumers in their homes.

5.

A wholesaler hired by a buyer or seller on a permanent basis and paid commissions is a(n) ____________________ .

6.

A ____________________ is a specific, measurable goal relating to physical distribution activities.

7.

____________________ refers to the marketing activities of intermediaries who sell to retailers, industrial users, and wholesalers.

8.

A retailer that carries only particular lines of products is a _______________ .

9.

The design of a store’s physical space is its ____________________ .

10.

The market coverage is which one outlet is used in a specific geographic area for distributing a product is called ____________________ .

11.

The marketing activity of ____________________ is involved in selling products to final consumers for personal or household use.

12.

____________________ refers to the receipt and preparation of an order for shipment.

13.

A retail store carrying a large inventory that deals in volume and provides limited service is a ____________________ .

14.

____________________ includes those activities that involve the movement of products through marketing channels from manufacturer to consumer.

15.

____________________ refers to marker coverage in which only some of the available outlets are used for distributing a product.

16.

A large, self-service retailer, that stocks a wide variety of groceries and a limited assortment of nonfood products is a ____________________ .

17.

____________________ involves shipping goods to customers by rail, air, truck, water, and pipeline.

18.

A small retail store in a convenient location and open for long hours is a ____________________ .