QUESTIONS 1: MARKETING CHANNEL (CHAPTER 7)

Answer all the questions

1.1 How the intermediaries act? (2 marks)

Intermediaries act as a link in the distribution process, but the roles they fill are
broader than simply connecting the different channel partners. Wholesalers, often
called “merchant wholesalers,” help move goods between producers and retailers.

1.2 What is an operation of McLane Company Inc? (4 marks)

The operation of McLane Company Inc is the company buys, sells, and delivers
more than 50,000 different consumer products to nearly 90,000 location across the
U.S. In addition, McLane provides alcoholic beverage distribution through its wholly
owned subsidiary, Empire Distributor, Inc.

1.3 Why Wholesalers purchase very large quantities of goods directly from
producers? (4 marks)
Wholesalers purchase very large quantities of goods directly from producers
because by purchasing large quantities or volumes, wholesalers are able to secure
significantly lower prices. Next, wholesaler has such strong buying power, the
wholesaler is able to force a lower price on every farmer who is selling potatoes.
Lastly, Wholesaler is the more likely it will have significant power to set attractive
prices.

1.4 Explain the following wholesaler function based on this article (6 marks)
Wholesaler function based on this article is wholesalers purchase very large
quantities of goods directly from producers or from others wholesaler. Next, once
the wholesaler has purchased a mass quantity of goods, it needs to get them to a
place where they can be purchased by consumers. Then, wholesalers buy a very
 large quantity of goods and then break that quantity down into smaller lots.
Furthermore, wholesalers either take title to the goods they purchase, or they own
the goods they purchase. Other than that, the wholesaler will fill a role in the
promotion of the products that it distributes. Lastly, wholesaler also influence which
products the retailer offers.

1.5 Explain how the McLane Company manage their mass quantity of goods?
(4 marks)
McLane Company manage their mass quantity of goods is McLane Company
operates eighty distribution centers around the country. Its distribution center in
Northfield, Missouri, is 560,000 square feet big and is outfitted with a state-of- the
art inventory tracking system that allows it to manage the diverse products that
move through the center. It relies on its own vast trucking fleet to handle the
transportation.

1.6 Wholesalers either take title to the goods they purchase, or they own the
goods they purchase. There are TWO (2) primary consequences of this.
Explain. (5 marks)
The two primary consequences of this wholesalers are first, it means the wholesaler
finances the purchase of the goods and carries the cost of the goods in inventory
until the are sold. Because this is a tremendous expense, it drives wholesalers to be
accurate and efficient in their purchasing, warehousing, and transportation
processes. Second, wholesalers also bear the risk for the products until they are
delivered. If goods are damaged in transport and cannot be sold, then the
wholesaler is left with the goods and the cost.
QUESTION 2: INTEGRETED MARKETING COMMUNICATION (TOPIC 8)
Answer all question

2.1 By refer article 2, what is Aspen Group treated purchasers of its property
(3 marks)
Aspen Group treated purchasers of its property is close to 600 guests were
unshared into four halls within the cineplex to enjoy the just–released American
superhero blockbuster ‘Justice League’. Each guest was also treated to popcorn and
drinks. Earlier, they mingled over light cocktail food at the foyer.
In addition, eligible customers will also received a grant for a sum up to RM 20 000,
a RM 5000 Ikea gift card and free iPad upon signing of the sales and purchase
agreement as well waived legal fees.

2.2 Give TWO (2) reasons, why the Aspen Group chose ‘Justice League’ for the
exclusive screening? (4 marks)
Two reasons why the Aspen Group chose ‘Justice League’ for the exclusive
screening is many people were eagerly anticipating the superhero movie. Next, they
also want to overcome different challenges. Next, they pull through to achieve their
ultimate goal to enhance the lives of those we come across.

2.3 Explain what kind of organization’s promotional strategy that the company
using in this case. (6 marks)
The kind of organization’s promotional strategy that the company using in this case
is public relations. Public relation is an effort to build good relationship between the
company and various public. For example, the company is currently offering the ‘My
Aspen Deposit’ campaign valid until Nov 30. Next is, the company using sales
promotion to the customer. Sales promotion is short-term incentive to encourage the
purchase or sale of a product or service. The example in the article is
2.4 From your opinion, what examples of organization’s promotional strategy that
Aspen Group might use? Give THREE (3) and explain. (12 marks)
From my opinion, example of organization’s promotional strategy that Aspen Group
might use is price off it is because the company give offers a 5% down payment plan
for first-time home buyers. Next, advertising. Advertising is normally used to
establish a long-term image of a company, brand or products such as Nescafe have
been decades in the market but the advertisements are still relevant. Lastly is direct
marketing. The first is that it attempts to send its messages directly to consumers
without the use of intervening media. For examples in the articles is tall-free number
at 1300-30-5000.
 DPM10013: PRINCIPLES OF MARKETING
TUTORIAL EXERCISE 2

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