Venue ____________________
MKTG3007 Retail Marketing and Distribution
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School of Marketing
EXAMINATION
End of Semester 2, 2017
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Materials
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None
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Calculator
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A non-programmable calculator is permitted in this exam
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Instructions to Students 11
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The increased utilization of the Web, including social media, has had a
major influence on shopper marketing. A study by the Grocery Manufacturers
Association (www.gmaonline.org) found that 62 percent of shoppers now look
for deals on line before at least one-half of their shopping trips. This behaviour
shifts channel power to manufacturers by influencing shoppers through
discount coupons and other special incentives. Manufacturers such as General
Mills have also become more adept at reaching shoppers by using social media
and other digital tools. The goal for General Mills is to "build a relationship with
them [consumers] so that they take that relationship into the stores and you
don't have to work as hard to win in that moment when they're at the shelf."
1. Provide three of your own examples of shopper marketing that are beneficial for
both manufacturers and retailers. (5 marks)
2. Is a retailer's desire to build up its private-label brands an inevitable source of
channel conflict? Explain your answer. (5 marks)
3. Describe how digital coupons offered by manufacturers shift channel power to the
manufacturer. (5 marks)
Question 1
Outline the contingency plan a retailer could have in the event of each of these
occurring: (10 marks)
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End of Semester 2, 2017
MKTG3007 Retail Marketing and Distribution
Question 2
(a) Describe the different factors retailers must consider when devising
merchandise plans. (3 marks) Provide appropriate examples to illustrate how
these factors have impacted the merchandise placed in retail stores. (2
marks)
(b) Describe the different types of brands that retailers can carry in their stores. (3
marks) Provide appropriate examples to illustrate how retailers are currently
using these brands. (2 marks)
Question 3
(a) There are six types of perceived risk: functional, physical, financial, social,
psychological and time. Using examples, explain how a retailer selling
expensive furniture could reduce the six types of perceived risk. (6 marks)
(b) How could a seasonal retailer improve its cash flow during periods when it
must buy goods for future selling periods? (4 marks)
Question 4
(a) Describe the different obstacles for conducting a retail audit. (3 marks)
Provide appropriate examples to illustrate how retailers can reduce these
obstacles. (2 marks)
(b) Describe the different reasons for holding inventory. (3 marks) Provide
specific examples to illustrate the different strategies that retailers can use to
reduce inventory levels. (2 marks)
END OF EXAMINATION
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