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.