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SEMESTER TEST 2 DETAILS
DATE: 8 April 2015 TIME: 5,6TH PERIOD 11:10 – 13:00 VENUES: A – Z, EXR 6 WORK: Unit 6,7,8,9,10,11 MARKS: 50 TIME: 90 Minutes FORMAT:
One Business Case study with application questions- You need to know the theory and how to practically apply it/ motivate answers from the case study.
• Make sure you read the entire case
study ( +- 2 page)
• Read your questions carefully-
motivate/ justify from the case.
• KNOW YOUR THEORY!
What type of questions can I expect?
What type of questions can I expect?
There are three product line stretching strategies. List any two (2) of these strategies and provide a suggestion as to how NIVEA can practically implement each strategy.
What type of questions can I expect?
With the five (5) product levels in mind, identify how NIVEA uses each level to add value to its customers, with their “Sun range” products.
[5]
[5]
[5]
[5]
[10]
[10]
[40 marks]
Distribution Management (placement) and retailingCHAPTER 9
What is Distribution all about? (pg. 293)
Do the elements of the marketing mix compliment each other?
MAJ
OR C
HANN
ELS
OF
DIST
RIBU
TION
(PG.
294
)
Channel Design: Structure and Number (pg. 297)
Exclusive DistributionFocus strategy
Selective DistributionDifferentiation strategy
Intensive DistributionCost-leadership strategy
Moredistribution points
Less distribution points
THE
EXTE
NT
OF
DIS
TRIB
UTI
ON
Exclusive Distributi
on
Selective Distributi
on
Intensive Distributi
on
Exclusive Distributi
on
Selective Distributi
on
Intensive Distributi
on
Exclusive Distributi
on
Selective Distributi
on
Intensive Distributi
on
Selective Distributi
on
Channel Activities and Functions (pg. 301-306)
Channel Activities or Functions (pg. 302)
Intermediaries close gaps and provide utility
Intermediaries resolve discrepancies Intermediaries reduce transactions Intermediaries synchronise needs, do
bulk breaking and re-assort product offerings
Specialisation in the distribution channel (pg. 307-311)
Channel Management (pg. 312-315)
What do you think causes channel conflict?
Horizontal Channel Conflict
Multi-Channel Conflict
Channel Partnerships / Co-operation
CHANNEL
Changes in
customer buying
patterns
Changes in the
product life cycle
Environmental Changes
Economic Conditions
(rise in inflation)
Changes in Industry and Competitive Conditions
Pressure of resellers and
Manufacturers
Most difficult stage of all! Hard to find
retailers to stock or carry the product
Overall demand increases
Distribution strategy:Intense distribution-
geographic expansion
Distribution structures apply pressure for reduced prices.
Seek new markets- new distribution
Difficult to maintain distribution
intensity- products become undesirable
Push & Pull Strategies (pg. 315)
PUSH STRATEGY
PULL STRATEGY
Manufacturer Wholesaler Retailer Consumer
Orders
Manufacturer Wholesaler Retailer Consumer
Orders
Channels for Services (pg. 323-340). Combined with Chapter 13.
Value Chain (pg. 334-336). Combined with Chapter 12.
Recommended