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MK0010- Sales, Distribution and Supply Chain Management

DRIVE-Spring 2015


SUBJECT CODE & NAME-MK0010- Sales, Distribution and Supply Chain Management

Q1. Designing the marketing channel involves the decisions pertaining to the size of the channel, its coverage and number of levels. These decisions are significant since it ensures the availability of goods and services to customers at locations suitable for procurement. Discuss the factors like channel structure, breadth and costs involved which principally determines the Channel design. (Definition of marketing channel, Channel structure, Channel breadth or intensity, Costs involved) 2, 2, 3, 3

Answer: Marketing Channels: Marketing channels ensure availability of goods and services to customers at locations suitable for procurement. While finalizing marketing channels, decisions regarding the most suitable



Q2. Explain the various steps involved in the personal selling process. (Definition of personal selling process, Steps involved) 2, 8


Answer: Personal Selling:

The key to the development of the sales force is the finalization of the appropriate sales processes by each organization. Sales processes differ across products as well as approaches and strategies followed by an organization. For example, the process usually adopted in a consumer product business is significantly different from that found in an industrial product or institutional selling. Even in consumer product sales, the approach could



Q3 An organization needs to be extremely cautious in making investments in various types of inventories. The extent of control required to be maintained on all items is not the same. Explain some important tools of Inventory management like ABC analysis, Just-In-Time & Economic order quantity model.

(Definition of Inventory and Inventory Management, ABC analysis, Just-In-Time &Economic Order Quantity Model) 3, 7


Inventory and Inventory Management


The term ‘inventory’ means any stock of direct or indirect material (raw materials or finished items or both) stocked in order to meet the expected and the unexpected demands in the future.



Q4 Explain the SCOR model with a diagrammatic representation.

(SCOR model, Focusing Aspects with diagram) 5, 5


SCOR model

The SCOR model is used to understand simple or complex supply chains through common set of terms. Consequently, different industries can be related teach other to interpret any supply chain. SCOR is based on five


Q5 When one member of distribution channel tries to maximize its profits at the expense of rest of the members, it will create conflicts, resulting in the decline of profits. To avoid these conflicts, now retail firms have started forming vertical Marketing systems (VMS). Explain the three types of VMS through which goods and services are usually distributed to customers.

(Definition of VMS, Three types of VMS) 2, 8


Vertical Marketing systems (VMS)

A Vertical Marketing System (VMS) is a system in which almost all the members of distribution channel such as manufacturers, wholesalers and retailers work together to satisfy human needs and wants by facilitating the smooth flow of goods and services from manufacturer to the ultimate consumer. In traditional marketing system,


Q6 Describe the supply chain Benchmarking Procedure.

(Definition of Benchmarking, Procedure for supply chain benchmarking)2, 8



Benchmarking has been used variedly to refer to several activities. Several definitions have described as ‘benchmarking’. Some of these definitions are discussed to emphasize the diversity:

  • ‘A continuous


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