Question

Which of the following statements is true of a traditional distribution structure?

1) The distribution system is national in scope.
2) The relationship between the importer and any middleman is similar to that found in a mass-marketing system.
3) The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common.
4) Independent agencies providing functions such as advertising, marketing research, and financing are part of this distribution structure.
5) The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

Answer 1

The true statement about a traditional distribution structure is that it consists of a chain of intermediaries, each selling to the next level until it reaches the consumer. This structured sequential process is common in traditional distribution, rather than the high-price, limited supply approach or being inclusive of independent agencies for marketing.

Step-by-step explanation:

The true statement about a traditional distribution structure is 3) The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. This distribution system involves various levels of intermediaries like wholesalers, retailers, and agents who are involved in moving the product from the manufacturer to the consumer. It is a sequential process where each member of the distribution chain buys from one level and sells to the next.

In contrast to the mass-marketing systems, traditional distribution structures usually involve more personal relationships between the importer and the middlemen. Furthermore, these structures do not necessarily have to be national in scope and can operate on local, regional, or international levels. They also do not inherently include independent agencies for advertising or marketing, although they may be used.

Lastly, traditional distribution does not invariably focus on selling limited supplies of goods at high prices to a few affluent customers. That strategy is more akin to a niche market approach rather than a trait of traditional distribution systems.