ANSWER QUESTIONS 1 AND 2

Section A: Answer Both Questions Read the following carefully and answer questions 1 and 2. Distribution: Distribution policy is influenced by a variety of factors, but the final decision is based on which chain of distribution will provide the best service to the customer for any given product As it is rare for a product to have a single market segment, most businesses will attempt to have several distribution policies, aimed at different market segments. The important thing, in marketing terms, is that any product is available to its consumers at an outlet which they can access easily and at a price which they can afford. A small company which specialises in selling personalised holidays in Australia and New Zealand uses two main distribution chains. In the first, the company sells its products to specialist travel agents, which then sell on the products to consumers who visit their outlets In the second it sells directly to its consumers through advertising in magazines which specialise in walking and outdoor activities. However, both these distribution chains tend to attract similar customers: people who wish to see a great deal of Australia and New Zealand while spending relatively small sums of money The company therefore also sells its services to a much larger tour company, which offers package holidays with all catering and accommodation arranged in advance. People taking these holidays are offered the opportunity to arrange single-day excursions throughout the package, using the smaller company. Question 1 (20 Marks) As a Marketing Consultant: a) Differentiate between goods and services. b) How can you differentiate the distribution policy for goods and services? c) Why distribution policy important to any given business? d) Identify and state what determines the selection of the channels of distribution? Question 2 (20 Marks) a) What is the difference between direct and indirect distribution? b) How does physical distribution differ from channels of distribution? c) Why is it important for the company to work closely with channel partners at different levels in the supply chain? d) Recommend the distribution approach that a small company which specialises in selling personalised holidays can use