Principles of marketing/PMKT103/Product branding distribution channels/Quiz 1

Branding and distribution channels quiz

Indicate whether the following statements are true or false:

• Sales growth is a legitimate channel objective.
  • True
    • Correct. Product marketers look to increase sales in existing markets, and reach into new markets. As a product matures, marketers will look to broaden the number of profitable customer segments for its products. For example, a yoga pants manufacturer may have begun selling yoga pants to yoga practitioners, but in the process of doing so, 'discovered' there were underserved customer segments (i.e., pregnant women, working women, seniors). Each customer segment requires different messaging, marketing collateral, images, advertising, sales promotions, website landing pages, etc. - so there are expenses to trying to reach a different customer segment.
  • False
    • Incorrect. Increasing sales within different distribution channels is an important indicator of product success. For example, a company may wish to optimize the keywords and images on an e-commerce website, to increase the likelihood that a customer will purchase its product(s), thereby contributing to an increase in sales growth.
• Retailers that place great emphasis on price and use low prices as their main sales appeal are referred to as chain stores.
  • True
    • Incorrect. The correct answer is discount stores. Some, but not all chain stores, offer price as a differentiator. (i.e., Dollarama, Dollar Store)
  • False
    • Correct. Discount houses offer low prices, as their main source of appeal to customers. (Some discount stores operate as chains, however.)
• Criteria to evaluate performance of distribution channels include: the relationship between buyers and producers, sales, ad and promotion performance, pricing, and competition.
  • True
    • Correct. In assessing the relationship between buyers and producers, marketers can look at several things, including relationship quality, terms and conditions, price breaks and special promotions - anything that can provide an advantage in getting products to the target market(s).
  • False
    • Incorrect. Marketers can look at the amount of competition within their distribution channels - which products are being carried, and on what basis, and is it affecting sales volume. This analysis can help determine whether the channels are working well or not.