Distribution Management

1. Distinguish the following words in distribution management:

a. Marketing channel
 A marketing channel consists of the people, organizations, and activities
necessary to transfer the ownership of goods from the point of production
to the point of consumption.
b. Logistics
 Logistics refers to the overall process of managing how resources are
acquired, stored, and transported to their final destination.
c. Supply chain management
 Supply chain management is the management of the flow of goods and
services and includes all processes that transform raw materials into final
products
d. Transportation and physical distribution
 Transportation as a component of physical distribution is concerned with
the movement of goods from the warehouse to customer destination.

2. What are the elements of a firm distribution system to a plan for achieving specific
distribution objectives? Identify the elements.

 Customer service: Customer service is a predefined standard of customer

satisfaction, which a retailer plans to provide to its customers.
 Order Processing: Order processing, alternatively known as order fulfillment is
the handling of customer orders within the distribution center (may be warehouse,
retail store itself) involving the keying of customer and order details into the
computer system in order to produce the invoices for picking.
 Inventory Control: Inventory control is a major component of a retail
organization’s physical distribution system.
 Warehousing: It involves all the activities required in storage of goods between
the time these are procured and the time these are transported to the customer
upon receipt of order.

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  Transportation Mode: Transportation is indispensable for physical distribution of
goods and services.
 Materials Handling: Materials handling implies the movement of goods inside the
retail organization, warehouses and retail stores/outlets.

Situation Analysis

1. On your own or with a classmate identify, draw, and explain a reverse channel with
which you are serve to business, community, and consumer.

2. With a classmate, choose a product you think would sell best through a direct channel.
Then create a brief sales presentation for your product and present it to class, ask for
feedback.

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 Marketing Management

1. Define marketing and explain how it creates utility.

 Marketing transactions create utility, which refers to the sum of the benefits we
receive when we use a good or a service. Utility is the use or satisfaction a person
gets from a product. Marketing makes life of people easier by ensuring people
have the type of product they want, where and when they want it.

2. What are the 3 factors have forced marketers to embrace a global marketplace?
International agreement is negotiated to expand among nations.
 Three factors have forced marketers to embrace a global marketplace: expanded
international trade agreements, new technologies that have brought previously
isolated nations to the marketplace, and greater interdependence of the world’s
economies.
3. What is the major distribution between the product era and the sales era?
 In the product era, marketing was less about establishing cost leadership and
universal distribution and more about relying on the attributes of the product itself
to attract consumers.
 In the sales era, companies viewed aggressive promotion as the key to success.
Any product can succeed, the thinking went, if a company just pushed it hard
enough. Kotler refers to this as businesses "selling what they make, rather than
making what the market wants to buy."

Situation Analysis

1. Consider each of the following firms and describe how the form goods and services can create
different types of utility, if necessary, on online to the company website to learn more about it.

a. Visa or Master card

 Visa and MasterCard are the only network payment processors that are
involved in all three areas of the payments market. Working exclusively as
network processors, these two companies have a unique edge but operate
differently.

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 b. Super value Supermarket
 SuperValue is a chain of locally owned and operated supermarkets in New
Zealand, established in 1964. The stores are operated under franchise
agreements, with franchise and group operation controlled by Wholesale
Distributors Limited (WDL).

c. Club Med
 Club Med SAS, commonly known as Club Med and previously known as
Club Méditerranée SA, is a French travel and tourism operator
headquartered in Paris, specializing in all-inclusive holidays.

2. Research one of the following electronic companies or another of your choosing and study its
effort to improve the sustainability of its product, particularly their safe disposal. What does the
company will do in the area? What could it be done to be better?

a. Microsoft
Microsoft Word or MS Word (often called Word) is a graphical word processing
program that users can type with. It is made by the computer company
Microsoft. Its purpose is to allow users to type and save documents.

The program is very popular.

Without configuration the program saved the document in a proprietary file
format, so other programs could not open it. When the user sent his document to
a friend, the friend needed a copy of Microsoft Word to read the document. Then
that friend would probably also save documents in the same secret format of
Word. This gave Microsoft Word a dominant position.

Similar to other word processors, it has helpful tools to make documents.

 Spelling & grammar checker, word count (this also counts
letters and lines)
 Speech recognition
 Inserts pictures in documents

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  Choice of typefaces
 Special codes
 Web pages, graphs, etc.
 Tables
 Displays synonyms of words and can read out the text
 Prints in different ways
Microsoft Word is a part of Microsoft Office, but can also be bought separately.

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 Retailing Management

1. How do you compare retailing to retailers?

 Retailers typically don't manufacture their own items. They purchase goods from
a manufacturer or a wholesaler and sell these goods to consumers in small
quantities. Retailing is the distribution process of a retailer obtaining goods or
services and selling them to customers for use.

2. What are the basic requirements for successful store management?

 Multi-tasking. Good managers must be able to oversee all the employees, keeping
their abilities and weaknesses in mind while prioritizing multiple projects.
 Decision-making. An effective manager has the ability to evaluate and decide
which are crucial to the success of your store. Retail often means actions must be
acted upon quickly, but making the right decision rapidly without mistakes means
evaluating information to weed through what is important and what isn't.
 Leadership. The best managers know how to get the most out of their team by
using their people management skills, listening skills, and problem-solving skills
to encourage their associates and sustain employee engagement.
 Motivation. This goes hand-in-hand with leadership. To be effective as a team
leader, being able to motivate employees is a must. Even though I'm a
motivational speaker, motivation to do well is internal.
 Organizational skills. A manager must be able to look for areas in which the rules
or procedures of the company can be improved.
 Effective communication. Only a small percentage of communication is the
spoken word. Body language, facial expressions, and tone of voice all combine
with words to convey a message.

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 3. Give the importance of Merchandize Budgeting and its benefits to the consumer or
public.
 Consistently having the right quantities of the right product in the right place at
the right price and at the right time is a cornerstone of effective retail
merchandising. This means that all the activities involved in purchasing and
moving retail goods from inventory to customers are components in a retail
merchandise plan. Just as with every other aspect of a retail operation,
merchandising operates within a budget.

4. Define the following:

a. Open to buy
 In the simplest terms, open-to-buy (OTB) is a financial budget for
merchandise buyers. By understanding inventory needs from a financial
perspective, including revenue and margin, retailers gain insight into their
open-to-buy process and ensure the organization will not overspend
merchandising budgets.

b. Mark down
 A markdown is a devaluation of a product based upon its inability to be
sold at the original planned selling price.

c. Scrambled merchandizing
 Scrambled merchandising refers to a retail tactic in which a retailer
broadens their assortment to include items that are generally outside their
focus or are usually sold in a different retail format.

Situation Analysis

As a student taking up business soon, then desire and requirements of present and potential
customer are the basis for formulating effective merchandize policies. What type and qualities of
merchandize you used as store owner and what in general do, they want? Are they attracted to
luxurious goods to the latest styles or to the best bargain?

As a future student in business and owner of the retail store, what unique qualities of the
business are considered and have an appealing to the customers?

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 Standing out from the crowd can give you an edge over your competition. Below
are seven examples of different traits to make your company different from your
competitors. A unique selling proposition (USP) is a well-thought-out statement
that helps a company distinguish itself from other businesses in its category. In
most instances, companies will focus on a single feature or benefit that solves a
problem, satisfies a need, or takes away their customers' pain as their USP. In
order to articulate it to their customer base in a memorable way, companies will
create taglines or summaries of their USP and insert them into their advertising
messages.
 Convenience: Easy in, easy out. Customers love how easy it is to buy your
product or use your service.
 Reliability/Dependability: Your product or service never fails.
 Quality: Your product is luxurious. Your service is top notch. When customers
describe your company, they speak in superlatives.
 Creativity: Your product or service inspires people to think outside the box. Apple
told customers to “think different” with pictures of brilliant minds such as Albert
Einstein and Pablo Picasso.

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 Professional Salesmanship

1. What is the distinction between selling and salesmanship?

 Selling is the process of transferring goods or services to the buyer in return of money or
something else by Registered Business. On the other hand, Salesmanship is actually the
way you convince your prospect with logic, arguments and product features to buy it
from you and not from other suppliers.

2. What is the importance of salesmanship to our economy?

 Salesman helps the consumers in making the right decision and proper selection of the
products which they want to buy. Salesmanship increases the rate of turnover, and hence
reduces unsold stock. As such it minimizes the economic stagnation.

3. Explain the effect of COVID-19 in the life of Filipino people who became jobless until the end
of the year 2020.

 The outbreak of the COVID-19 pandemic has rapidly transformed into an unprecedented
global economic and labor market crisis, with severe impact on the world of work in the
Philippines. This report examines the multidimensional impact on employment and the
labor market. It provides an account of the evolution of COVID-19 in the Philippines and
its economic impact in the first half of 2020. Building on baseline labor market data prior
to the onset of COVID-19 and labor force survey data from April 2020, the report
provides insights into the preliminary employment and labor market effects and identifies
sectors experiencing high impact on their economic output due to the crisis. In the
context of increasing calls for digitalization, the report also attempts to identify
occupations and sectors facing a dual challenge of high impact due to COVID-19 job
disruption and the disruptive effect of digitalization.

4. Give the common duties and responsibilities of a good salesman.

 Selling products and services using solid arguments to prospective customers. Performing
cost-benefit analyses of existing and potential customers. Maintaining positive business
relationships to ensure future sales.

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Situation Analysis

1. Selling required motivation, as a student who will become a future salesman constantly
experience rejection and frustration to their job and there are times when salesman end up losing
the sale to a competitor such as order are not delivered on time, incorrect merchandize is
shipped, quality does not conform to the standard and credit is turned down by the company. As
a salesman what will you do to find out the real reason you may move in your presentation?

Give your ideas as a salesman on how you will motivate the buyer and reason that a
buyer to act by understanding buying behavior. Explain.

Understanding the motivations behind your buyers, how they interact with your ecommerce site,
and where they are in terms of their decision-making process is crucial for any seller.

 What are customers asking your customer service reps? Are they asking for
guarantees, discounts, refunds? Find out what they are asking questions about, as
well as what they are asking for — examine those trends over both the short and
long-term to gain better insight.
 What specific categories or products are buyers looking at on your site?
Alongside gleaning important details from your service rep’s conversations,
tracking your buyer’s activities is crucial. Being as familiar as possible with what
your buyers are looking at (and where) on your site will allow you to have a far
more detailed understanding of their motivations.

Buyer motivation is the driving force behind what makes your customers decide to make
purchases on your site.

Engaging with them at whichever stage they are at in their journey, knowing the right
psychological factors at play, and being able to know yourself and how to correctly position your
products in the marketplace complete this picture.

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 Product Management

1. Define the product and distinguish between goods and services and how they relate to the
goods, and services continuum.

 They are the most basic products of an economy. Goods are defined as tangible
consumable items (e.g. ice cream) while services describe tasks that are performed by
individuals for the benefit of others (e.g. teaching). Therefore, the distinction between
goods and services can be seen as a continuum.

2. Give the 3 common classification schemes for sought product that divides consumer goods
and services into 3 groups based on consumer buying behavior and illustrate samples of these
categories together with unsought classification.

 Products can be classified as: - A. Consumer Products B. Industrial Products. Some of the
types of consumer goods are:
1. Convenience Goods
2. Shopping Goods
3. Specialty Goods
4. Impulse Goods
5. Emergency Goods.
Some of the types of industrial goods are:
1. Raw Materials
2. Fabricating Materials and Parts
3. Installations
4. Accessory Equipment
5. Supplies
6. Services.
 Convenience Products are usually low priced, easily available products that customer
buys frequently, without any planning or search effort and with minimum comparison
and buying effort. Such products are made available to the customers through widespread

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 distribution channels-through every retail outlet. This category includes fast moving
consumer goods (FMCG) like soap, toothpaste, detergents, food items like rice, wheat
flour, salt, sugar, milk and so on.
 Shopping products are high priced (compared to the convenience product), less
frequently purchased consumer products and services. While buying such products or
services, consumer spends much time and effort in gathering information about the
product and purchases the product after a careful consideration of price, quality, features,
style and suitability.
 Specialty Products are high priced branded product and services with unique features and
the customers are convinced that this product is superior to all other competing brands
with regard to its features, quality and hence are willing to pay a high price for the
product.
 Unsought product is consumer products that the consumer either does not know about or
knows about but does not normally think of buying. In such a situation the marketer
undertakes aggressive advertising, personal selling and other marketing effort. The
product remains unsought until the consumer becomes aware of them through
advertising. The price of such product varies.

Situation Analysis

1. On your own or with a classmate, choose one of the following goods for choose one of your
own, Visit the company site to learn as much as you can about your product and the way it is
marketed. Then create a marketing strategy for developing the services to support your product
and make it stand out from others:

a. Black Berry Smartphone

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2. With your classmate, create a plan for further extending one of the firm product lines.
Describe the strategy you would recommend for extending the line as well as new product.

 Analyze customer data. While it may be tempting to leap in head first and try to do
anything to increase sales, first, take the time to survey your customers. For example,
developing a customer satisfaction survey or a consumer product survey can generate
information about what is important to your customers, and gather their opinions and
comments.
 New products & services. Your customers may be craving something new or different.
Before you move forward and expand your product lines or offer additional services, be
sure to conduct thorough research.

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  Find new markets. Research emerging markets that may have a need for your products or
services. In order to penetrate more profitable markets, you must remain open to change.
Ask “what if” or “in what ways” questions to develop new market ideas.
 Expand distribution channels. Distribution is one of the classic “4 Ps” of marketing
(product, promotion, price, and placement, a.k.a. distribution). Distribution helps you
expand your reach and grow revenue.
 Target existing customers. Current customers will often be repeat customers. Loyal,
ongoing customers are the backbone of every business. In today’s highly competitive
environment, current customers cannot be ignored or else they may be won over by your
competition.

Advertising Management

1. What is advertising? How do you consider the importance of advertising to a company?

 Advertising is a marketing tactic involving paying for space to promote a product,

service, or cause. The actual promotional messages are called advertisements, or ads for
short. The goal of advertising is to reach people most likely to be willing to pay for a
company's products or services and entice them to buy.
 Advertising helps your business compete– There are only so many consumers in the
market that are willing to buy your product at any given time. Advertising helps
businesses stay ahead of the game while competing with other businesses. Advertising is
how you convince the consumer that you are the one they should choose.

2. How do you classify the advertising objectives which aim is to inform, persuade, remind or
reinforce?

Advertising has three primary objectives: to inform, to persuade, and to remind.

 Informative Advertising creates awareness of brands, products, services, and ideas. It

announces new products and programs and can educate people about the attributes and
benefits of new or established products.

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  Persuasive Advertising tries to convince customers that a company’s services or products
are the best, and it works to alter perceptions and enhance the image of a company or
product. Its goal is to influence consumers to take action and switch brands, try a new
product, or remain loyal to a current brand.
 Reminder Advertising reminds people about the need for a product or service, or the
features and benefits it will provide when they purchase promptly.

3. Let us presume that as a student and an advertiser of an agency what steps to develop a
creative strategy, message generation, message evaluation, and selection execution and social
responsibility? Explain each strategy.

 creative strategy is the long-term approach of how you develop visual stimuli for
your brand, product, or service. It dictates the theme, look and feel of all of your
assets. The creative strategy should again adhere to the overarching strategy.
 He tries to generate as many as possible advertising themes/messages. Message
creation involves discovering the key benefits a product offers. Sometimes, a
marketer has to change benefits without changing the product when consumers
seek new or different benefits.
 Message Evaluation: Strategies. In order to evaluate whether a message is
effective, we can ask ourselves a series of questions which reflect a message's
simplicity, specificity, structure, and stickiness.
 Social responsibility is an ethical framework and suggests that an individual has
an obligation to work and cooperate with other individuals and organizations for
the benefit of society at large.

Situation Analysis

1. Choose one of the products in a certain company and learn how you will market your product.
Create a marketing strategy for developing the services to support the product.

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2. Create a plan for further extending of product lines and describe the strategy you would
recommend for a new product.

 Apple focuses on their UVP (unique value proposition), which is beautiful design that
works right out of the box with ever-smaller packaging. It's a marketing strategy that gets
juice throughout social media and is very much a competitive advantage for Apple and its
market share.

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