SS2 Marketing First term Lesson Notes

Types and Functions of Distribution l

Types and Functions of Distribution ll

Types and Functions of Distribution lll

Types and Functions of Distribution IV
Types and Functions of Distribution V
Marketing SSS2 First Term Mid-Term Assessment
Transportation l
Transportation ll
Transportation lll
Transportation lV
Transportation V
Marketing SSS2 First Term Final Assessment

WEEK 1
Types and Functions of Distribution l
Performance objectives
Students should be able to:
1. State the meaning of distribution.
2. List the types of distribution.
Content
I. Distribution
ii. Types of distribution.

Distribution
A distribution channel can be described "as an organized system
of marketing institutions and their interrelationships that promote
the physical flow of goods and services along with a title that
confers ownership from producer to consumer or business user. It
also connotes the network of organizations that creates time,
place and possession utilities for consumers and business users.
Examples: movement of textbooks from publishers to bookshops,
movement of agricultural products from farm to the commodity
market.
Types of Distribution
The distribution could be grouped into the following;
1. Dual Channel Distribution: This refers to the movement of
products through more than one distribution channel to reach the
same target consumers.
Examples are:
(a) Manufacturer---> Wholesaler---> Consumers
(b) Manufacturer---> Wholesaler---> Retailers
2. Reverse Channel Distribution: This relates to the backward
movement of goods from users to producers. This is the situation
when consumers are expected to supply certain information
before goods and services could be distributed. For instance,
registration of car owner allows manufacturers to send a proper
notification in the event of a recall.
3. Wholesaling Intermediaries: This is a broader term whereby
firms sell products primarily to retailers or to other wholesalers or
business users and only in insignificant amounts to the ultimate
consumer. These include agents and brokers who perform
important wholesaling activities without taking title to goods
which differentiates it from merchandising.
4. Sakes Channel: This is part of the distribution which involves
the buying, selling and transferring title. The participants in this
marketing channel are the manufacturers, retailers, consumers
and transportation company.
5. Facilitating Channel: These include public storage firms,
insurance companies, finance companies, market research firms
and several other types of firms also frequently participate as
facilitating organisations in various marketing channels. It is
essential that both the sales and facilitating channels are usually
needed to create time, place and possession utilities.

WEEK 2
Types and Functions of Distribution ll
Performance Objectives
Students should be able to:
1. Identify the channel of distribution.
2. State the functions of each channel of distribution.
Content
i. Channel of distribution
- Wholesaler
ii. Functions of wholesaler

Channels of Distribution
Channels of distribution connote the medium through which
products pass from manufacturers to consumers.

Wholesaler
A wholesaler is an intermediary entity in the distribution channel
that buys in bulk and sells to resellers rather than to consumers.
In its simplest form, a distributor performs a similar role but often
provides more complex services. Distributors and wholesalers
often work together as channel partners.

Functions of Wholesaler
1. Assembling:
A wholesaler buys goods in bulk from different manufacturers and
keeps them at one place. He collects goods from several places
much in advance of demand. He may also import goods from
foreign countries.
2. Warehousing or storage:
There is usually a large time gap between production and
consumption of goods. Goods must, therefore, be stored for a
considerable time.
A wholesaler stores goods in his warehouse and makes them
available to retailers as and when demanded. He stabilizes the
prices of the goods by adjusting the supply with the demand. He
creates time utility.
3. Dispersion:
A wholesaler distributes the assembled goods among a large
number of retailers scattered at different places. He sells goods in
small quantities according to the choice of retailers. This is known
as ‘breaking of bulk’.
4. Transportation:
A wholesaler arranges for the transport of goods from producers
to his warehouse and from the warehouse to retailers. He carries
goods in bulk thereby saving costs of transport.
Many wholesalers maintain their own trucks and tempos to carry
goods far and wide quickly. Thus, a wholesaler adds place utility
to the goods.
5. Financing:
A wholesaler often provides advance money with orders to
manufacturers. He purchases goods in bulk on a cash basis from
them. In addition, he often sells goods on credit basis to retailers.
In this way, he provides finance to both producers and retailers.
6. Risk -bearing:
A wholesaler assumes the risk of damage to goods in transit and
in storage. He also bears the risks arising from changes in
demand and bad debts. He serves as the shock absorber in the
distribution of goods.
7. Grading and Packing:
Many wholesalers classify the assembled goods into different
grades, pack them into small lots and put their own trademarks or
brand names. In this way, they perform the functions of grading,
packing and branding.
8. Pricing:
A wholesaler anticipates demand and market conditions. He helps
to determine the resale price of goods.

WEEK 3
Types and Functions of Distribution lll
Performance objectives
Students should be able to:
1. Identify the channel of distribution
2. State the functions of the retailer as a channel of distribution.
Content
i. Channel of distribution - retailer
ii. Functions of a retailer.

Retailer
A retailer, or merchant, is an entity that sells goods such as
clothing, groceries, or cars directly to consumers through various
distribution channels with the goal of earning a profit. ... In
general, retailers don't manufacture the goods they sell.
Functions of Retailer
The functions of the retailer can be explained as follows:
i. Connecting Link:
A retailer is a connecting link between the wholesaler and
consumer. He purchases goods from the wholesaler and sells the
same to the end consumer.
ii. Marketing Function:
Whenever the wholesaler is not capable of carrying out marketing
functions transportation and warehousing of goods, the retailer
takes over the responsibility. The retailer also helps in advertising
the goods and services effectively as he is in direct contact with
the consumers.
iii. Market Information:
A retailer provides the following information to the wholesaler:
a. Tastes and preferences of consumers,
b. Current market trend for a particular product and
c. Demand for competitors’ product.
This helps the wholesaler in understanding the products that are
currently in demand. A retailer provides the consumers with
detailed information regarding the product attributes, price,
warranty etc. enabling them to make an informed decision
regarding the purchase.
iv. Helps Distribution:
In the case of perishable goods like fruits, vegetables, poultry or
dairy products, it is necessary that the goods reach the end
consumers in time. This is because they have a short shelf life.
Since retailers are in direct contact with a large number of
consumers, they help in the faster distribution of goods.
v. Creates Demand:
A retailer tries to draw consumers’ attention towards the newly
launched goods through the medium of window display and
banner advertisements. The retailer is also able to convince the
customers into buying a certain product due to personal relations
he has with them. This helps in creating demand for the products.
vi. Local Convenience:
Retailers are usually located in residential areas and remain
operational throughout the day. The customers have the flexibility
of purchasing goods from such nearby retailers as per their
convenience. They do not have to travel long distances to reach
the wholesaler or the producer. Also, the manufacturer is assured
that his goods are reaching the place of consumption on a timely
basis.

WEEK 4
Types and Functions of Distribution IV
Performance Objectives
Students should be able to:
1. Explain the term consumer in the channel of distribution.
2. State the functions of a consumer
Content
i. Consumer
ii. Functions of the consumer.
Consumer
A consumer is a person or a group who intends to order, orders,
or uses purchased goods, products, or services primarily for
personal, social, family, household and similar needs, not directly
related to entrepreneurial or business activities.
Functions of Consumer
1. A consumer is the one that buys goods for consumption and
not for resale or commercial purpose.
2. The consumer is an individual who pays some amount of
money for the thing required to consume goods and services.
3. Consumers play a vital role in developing the economic system
of a nation.
4. With consumer demand, producers have motivations to
produce and to sell.
5. The consumer also forms part of the chain of distribution.

WEEK 5
Types and Functions of Distribution V
Performance Objectives
Students should be able to:
Explain the factors that influence the choice of distribution
channel
Content
Choice of Distribution Channels

Choice of distribution channels

The choice of channels depends on various factors. Usually,
manufacturers consider which distribution channel would be
objective and efficient.
The selected channels must have the lowest cost with a
maximum overall profit. It should also be remembered that there
is no single channel of distribution that will always result in
optimum profit. The integrated marketing concept has prompted
many manufacturers to employ several kinds of channels.
Choice of distribution channels can be influenced by the following
criteria or considerations:
1. Market Variables: This relates to where the majority or bulk of
the consumers has related i.e nearness to consumer location,
patterns of consumer buying behavioural.
2. Product Variables: This relates to weight, unit, value,
technicality, and perishability of a product, nature of product e.g.
agricultural products, petroleum products, machinery and plants.
3. Company Variables: This relates to the financial capacity of
manufacturers, size, expertise and desire for managerial control.
4. Intermediary Variables: This relates to cost, availability and
kind of services provided.
5. Behavioural Variables: This relates to collective bargaining and
behavioural pattern of consumer.
6. External Environmental Variables: This relates to government
policy/regulations/policies competition, technological innovation,
prevalent economic conditions, political and cultural settings etc.

Test: Marketing SSS2 First Term Mid-Term Assessment

1. _________ relates to backward movement of goods from users to producers?

sakes channel

reverse channel distribution

facilitating channel

dual-channel distribution

2. ___________ refers to the movement of products through more than one distribution
channel to reach the same target consumers?

sakes channel

reverse channel distribution

facilitating channel

dual-channel distribution

3. _________ is part of the distribution which involves the buying, selling and
transferring the title?

sakes channel

reverse channel distribution

facilitating channel

dual channel distribution

4. __________ include public storage firms, insurance companies, finance companies,

market research firms and several other types of firms also frequently participate as
facilitating organisations in various marketing channels?

sakes channel

reverse channel distribution

facilitating channel

dual-channel distribution
5. . ___________ can be described "as an organized system of marketing institutions
and their interrelationships that promote the physical flow of goods and services along
with title that confers ownership from producer to consumer or business user?

distribution

reverse channel distribution

facilitating channel

dual-channel distribution

6. Does a wholesaler anticipate demand and market conditions?

True

False

7. . Grading and Packaging is one of the functions performed by Wholesaler?

True

False

8. ___________ is an intermediary entity in the distribution channel that buys in bulk

and sells to resellers rather than to consumers?

retailer

channel of distribution

wholesaler

grading and packaging

9. . __________ connotes the medium through which products pass from

manufacturers to consumers?
warehouse

channel of distribution

wholesaler

grading and packaging

10. Does a wholesaler never assume the risk of damage to goods in transit and in
storage?

True

False

11. A retailer is a connecting link between the

manufacturer and consumer

merchant and wholesaler

wholesaler and consumer

consumer and buyer

12. . Retailers are usually located in residential areas and remain operational?

True

False

13. A retailer provides the following information to the wholesaler except?

Tastes and preferences of consumers,

Current market trend for a particular product and

Demand for competitors’ product.

The lack of money of the consumers

14. A retailer tries to draw consumers’ attention towards the newly launched goods
through the medium of window display and banner advertisements?

True

False

15. Does a retailer never create demand?

True

False

16. . Consumers don't use purchased good, instead, they keep it?

Yes

No

17. With consumer demand, producers have motivations to produce and to sell?

True

False

18. A consumer is the one that buys good for consumption and not for resale or
commercial purpose?

True

False

19. The consumer does not form part of the chain of distribution?
True

False

False

20. Do consumers play a vital role in developing the economic system of a nation?

True

False

21. ________ relates to where the majority or bulk of the consumers is related i.e
nearness to consumer location, patterns of consumer buying behavioural?

behavioural variables

company variables

product variables

market variables

22. __________ relates to collective bargaining and behavioural pattern of consumer?

behavioural variables

company variables

product variables

market variables

23. ___________ relates to weight, unit, value, technicality, perishability of a product?

behavioural variables
company variables

product variables

market variables

24. _________ relates to government policy/regulations/policies competition,

technological innovation, prevalent economic conditions, political and cultural settings?

behavioural variables

company variables

product variables

external environment variables

25. _________ relates to the financial capacity of manufacturers, size, expertise and
desire for managerial control?

behavioural variables

company variables

product variables

market variables
WEEK 6
Transportation l
Performance Objectives
Students should be able to:
1. Explain the meaning of transportation in marketing
2. List the importance of transportation in marketing
Content
i. Meaning of transportation
ii. Importance of transportation in marketing.

Meaning of Transportation
Transportation can be described as the physical movements of
products from places of manufacturing to other channels of
distribution to get to the hands of the ultimate users.
This connotes the physical carriage of finished products from the
place of manufacturing to the place where it would be accessible
and available to the target audience either wholesaler, sales
agent, retailers and ultimately to the final consumer. Production
of goods and services might not have completed until the goods
and services get to ultimate consumers and consumed by the
buyers of the product. It is otherwise known as routes of
marketing products.
Importance of transportation in marketing
1. It generates employment for different categories of skilled and
semi-labour such as commercial drivers, mechanics, dealers and
suppliers of motor spare parts etc.
2. It helps to bring products nearer to the consumer.
3. It helps to stabilize the exchange process.
4. It enhances social interaction.
5. It helps in sustaining the economic activities of a nation.
6. It promotes business transaction and negotiation efficiency.
7. It promotes international trade and relations.
8. It facilitates and enhances the exchange process.
9. It helps in the exchange of foreign currencies.
10. It promotes transnational and cultural relationships and
languages.

WEEK 7
Transportation ll
Performance Objectives
Students should be able to:
1. State the major modes of transportation
2. State the form of land transport.
3. Identify the advantages and disadvantages of land transport.
Content
I. Mode of transportation
- Land
ii. Forms of land transport
- Road
- Rail
iii. Advantages and disadvantages of each form of land transport.

Land
Land transport is the transport or movement of people, animals or
goods from one location to another location on land. The two
main forms of land transport are rail transport and road transport.
Forms of Land Transport
Road Transport
These include vehicles such as trailers, buses, cars, etc. that carry
products from one place to another. The road is a route between
two destinations, which has been either paved or worked on to
enable transportation by way of motorised and non-motorised
carriages.

Advantages of Road Transport

1. Less Capital Outlay:
Road transport required much less capital investment as
compared to other modes of transport such as railways and air
transport. The cost of constructing, operating and maintaining
roads is cheaper than that of the railways. Roads are generally
constructed by the government and local authorities and only a
small revenue is charged for the use of roads.
2. Door to Door Service:
The outstanding advantage of road transport is that it provides
door to door or warehouse to warehouse service. This reduces
cartage, loading and unloading expenses.
3. Service in Rural Areas:
Road transport is most suited for carrying goods and people to
and from rural areas which are not served by rail, water or air
transport. Exchange of goods, between large towns and small
villages, is made possible only through road transport.
4. Flexible Service:
Road transport has a great advantage over other modes of
transport for its flexible service, its routes and timings can be
adjusted and changed to individual requirements without much
inconvenience.
5. Suitable for Short Distance:
It is more economic and quicker for carrying goods and people
over short distances. Delays in transit of goods on account of
intermediate loading and handling are avoided. Goods can be
loaded directly into a road vehicle and transported straight to
their place of destination.
6. Lesser Risk of Damage in Transit:
As the intermediate loading and handling are avoided, there is
lesser risk of damage, breakage etc. of the goods in transit. Thus,
road transport is most suited for transporting delicate goods like
chinaware and glassware, which are likely to be damaged in the
process of loading and unloading.
7. Saving in Packing Cost:
As compared to other modes of transport, the process of packing
in motor transport is less complicated. Goods transported by
motor transport require less packing or no packing in several
cases.
8. Rapid Speed:
If the goods are to be sent immediately or quickly, motor
transport is more suited than the railways or water transport.
Water transport is very slow. Also, much time is wasted in
booking the goods and taking delivery of the goods in case of
railway and water transport.
Road transport not only requires less initial capital investment,
the cost of operation and maintenance is also comparatively less.
Even if the rate charged by motor transport is a little higher than
that by the railways, the actual effective cost of transporting
goods by motor transport is less. The actual cost is less because
the motor transport saves in packing costs and the expenses of
intermediate loading, unloading and handling charges.

Disadvantages of Road Transport

1. Seasonal Nature:
Motor transport is not as reliable as rail transport. During rainy or
flood season, roads become unfit and unsafe for use.
2. Accidents and Breakdowns:
There are more chances of accidents and breakdowns in case of
motor transport. Thus, motor transport is not as safe as rail
transport.
3. Unsuitable for Long Distance and Bulky Traffic:
This mode of transport is unsuitable and costly for transporting
cheap and bulky goods over long distances.
4. Slow Speed:
The speed of motor transport is comparatively slow and limited.
5. Lack of Organisation:
The road transport is comparatively less organised. More often, it
is irregular and undependable. The rates charged for
transportation are also unstable and unequal.

Rail Transport
These involve trains that carry heavy plants and machinery. Rail
transport is a means of transferring passengers and goods on
wheeled vehicles running on rails, which are located on tracks.
Advantages of Rail Transport
1. Dependable:
The greatest advantage of the railway transport is that it is the
most dependable mode of transport as it is the least affected by
weather conditions such as rains, fog etc. compared to other
modes of transport.
2. Better Organized:
Rail transport is better organized than any other form of
transport. It has fixed routes and schedules. Its service is more
certain, uniform and regular as compared to other modes of
transport.
3. High Speed over Long Distances:
Its speed over long distances is more than any other mode of
transport, except airways. Thus, it is the best choice for long-
distance traffic.
4. Suitable for Bulky and Heavy Goods:
Railway transport is economical, quicker and best suited for
carrying heavy and bulky goods over long distances.
5. Cheaper Transport:
It is a cheaper mode of transport compared to other modes of
transport. Most of the working expenses of railways are in the
nature of fixed costs. Every increase in railway traffic is followed
by a decrease in the average cost. Rail transport is economical in
the use of labour also as one driver and one guard are sufficient
to carry much more load than the motor transport.
6. Safety:
The railway is the safest form of transport. The chances of
accidents and breakdowns of railways are minimum as compared
to other modes of transport. Moreover, the traffic can be
protected from exposure to sun, rains, snow etc.
7. Larger Capacity:
The carrying capacity of the railways is extremely large.
Moreover, its capacity is elastic which can easily be increased by
adding more wagons.
Disadvantages of Rail Transport
1. Loss of Goods:
Because goods in bulk quantities are carried chances of goods
getting lost are high in the case of railway transport as compared
to air and road transport.
2. Unsafe for Fragile Items:
Railway transportation is particularly unsafe for carrying fragile
items like glass because these items can easily break at times
when a train halts unexpectedly of when the train is speeding up
at times.
3. Late Bookings:
Because the railway is the cheapest medium of transport, it is
hard to find suitable bookings for the transportation of your
goods. Railway transport is not suitable in cases of emergency.
4. Unsuitable for Short Distances:
Railway transport is unsuitable for carrying goods at shorter
distances; road transport is most suitable in this case.
5. Unsuitable for Rural Areas:
The proper railway system is not build up in the Indian villages as
a result of which railway transport is unsuitable in the villages of
India. Whatever be the disadvantages of railway transport it was,
it is and it will always be the safest and the best means for the
transportation of goods.

WEEK 8
Transportation lll
Performance Objectives
Students should be able to:
1. Explain transportation by air
3. State the advantages and disadvantages of air transport.
Content
i. Air transport
ii. Advantages and disadvantages of air transport.

Air Transport
These include the aeroplanes, cargo planes, helicopters, jets, etc.
that carry high-priced speciality goods, machinery and industrial
products etc. Air transport is an important enabler to achieving
economic growth and development. Air transport facilitates
integration into the global economy and provides vital
connectivity on a national, regional, and international scale. It
helps generate trade, promote tourism, and create employment
opportunities.
Advantages of Air Transport
1. High Speed
It is the fastest mode of transport and therefore suitable for the
carriage of goods over a long distance. It requires less time.
2. Quick Service
Air transport provides comfortable, efficient and quick transport
services. It is regarded as the best mode of transport for
transporting perishable goods.
No Infrastructure Investment
Air transport does not give emphasis on the construction of tracks
like railways. As no capital investment in the surface track is
needed, it is a less costly mode of transport.
3. Easy Access
Air transport is regarded as the only means of transport in those
areas which are not easily accessible to other modes of transport.
It is therefore accessible to all areas regardless of the obstruction
of land.
4. No Physical Barrier
Air transport is free from physical barriers because it follows the
shortest and direct routes where seas, mountains and forests do
not obstruct.
5. Natural Route
Aircrafts travels to any place without any natural obstacles or
barriers because the custom formalities are compiled very
quickly. It avoids delay in obtaining clearance.
6. National defence
It plays a significant role in the national defence of the country
because modern wars are conducted with the help of aeroplanes.
Airways has an upper hand a destroying the enemy in a short
period.
The disadvantage of air transport
In spite of many advantages, air transport has some disadvantage
also.
1. Risky
Air transport is the riskiest form of transport because a minor
accident may put a substantial loss to the goods, passengers and
the crew. The chances of accidents are greater in comparison to
other modes of transport.
2. Very Costly
Air transport is considered costlier as compare to other modes of
transport. The operating cost of aero-planes are higher and it
involves a great deal of expenditure on the construction of
aerodromes and aircraft. Because of this reason, the fare for air
transport is high that common people can’t afford it.
3. Small Carrying Capacity
The aircraft have small carrying capacity and therefore these are
not suitable for carrying bulky and cheaper goods. The load
capacity cannot be increased as it is found in case of rails.
4. Unreliable
Air transport is unreliable as it depends on the weather forecast.
Normally if the weather is not certain the flight may get delayed.
5. Huge Investment
Air transport requires huge investment for construction and
maintenance of aerodromes. It also requires trained, experienced
and skilled personnel which involves a substantial investment.

WEEK 9
Transportation lV
Performance Objectives
Students should be able to:
1. Explain the meaning of water transport
2. State the advantages and disadvantages of water transport.
Content
i. Water transport
ii. Advantages and disadvantages of water transport.

Water Transport
These include the speed boat, canoes, ships etc. that carry both
heavy plants and machinery or lightweight products. Water
transportation is the intentional movement of water over large
distances, and is the process of moving people, goods, etc. by
barge, boat, ship or sailboat over a sea, ocean, lake, canal, river,
etc.
Advantages of Water Transport
1. Less Maintenance Cost:
Maintenance cost in rail and road transport is quite high but the
maintenance cost of water transport is quite less.
2. Cheap:
The transport channel is quite cheap as compared to rail and road
transport.
3. Useful for Bulky Goods:
Heavy and bulky goods can be transported easily at little cost
through water transport.
4. Useful During Natural Calamities:
During natural calamities like flood and rains, when rail and road
transport is disrupted, relief operations can be operated through
water transport.
5. Helpful in Defence:
Development of shipping is essential for the defence of the
country also. It is also called the second line of defence.
6. Important for Foreign Trade:
Water transport plays important role in foreign trade. India’s
foreign trade is mainly dependent on water transport.
Disadvantages of Water Transport
The following are the disadvantages of water transport:
1. Slow Speed:
It is a slow means of transport. Failure of monsoon results into fall
in the water level of rivers making navigation difficult.
2. Riskier:
Water transport is riskier as compared to other means because
there is always the danger of sinking ships or boats.
WEEK 10
Transportation V
Performance Objectives
Students should be able to:
1. Identify the document used in transportation in marketing
2. State the factors that influence the choice and documents used
in transportation.
Content
I. Choice of transportation
ii. Document used in transportation in marketing.
Choice of Transportation
Marketing firms decision on the choice of transportation to make
use of in transporting their products to the end-users is influenced
by the following factors:
i. The nature of the product: Perishability, durability, storage, the
fragility of the product.
ii. The product variables: Weight, kilogrammes, packaging,
heaviness decide the choice of transportation. E.g, industrial
plants and machinery/equipment are usually transported by
either rail or water.
iii. Cost advantage: Marketing firms also consider cost variables
as to cheapness of carrying a product. For instance, it is better to
carry several tons of cement from point of manufacturing through
the railway to a far distance place than using a trailer. It is less
expensive compared to the use of trailers.
iv. Nearness to market: When the market or the location of the
ultimate consumer is very close to the producer, this most often
determine the mode of transport use.
v. Location of the company: When the company is not too far to
the market or not in remote areas dues to raw materials as an
important factor that determines the location of a company,
organisations make use of best transportation that is cheaper and
convenient.

vi. Company Variables: This relates to the financial capacity of

manufacturers, size, expertise and desire for managerial control.
vii. Intermediary Variables: This relates to cost, availability and
kind of services provided.
viii. Behavioural Variables: This relates to collective bargaining
and behavioural pattern of consumer.

Documents used in Transportation in Marketing

Transport documents are contracts for carriage of goods
exchanged between different actors. They differ depending on the
method of carriage used.
Bill of Lading
The Bill of Lading (B/L) is a contract for maritime carriage that
specifies the taking of responsibility, or the loading, of goods by
the carrier. It contains detailed information on the goods, the boat
and the port of destination.
It is a document of title to the goods, that gives the right to their
ownership. The carrier commits to delivering the goods to the
person who holds the bill of lading and who will come and get the
goods. It is a transferable title: the originals may be transferred
by endorsement.
Sea Waybill
The Sea Waybill documents only the carriage contract signed by
the shipper and the maritime transport line and represents the
receipt of the goods. It contains detailed information on the port
of embarkation, the port of destination, the name of the ship, the
name of the shipper, the name and the address of the recipient.
Different from the Maritime Bill of Lading, the Sea Waybill is not a
document of title to the goods and is non-transferable.
Consignment Note (CMR)
The CMR consignment note certifies the carrier's taking of
responsibility for the merchandise and shipping upon signature by
the carrier. It documents a carriage contract of the goods that
exist independently of them. It must be established in the form
specified by the "Convention on the Contract for the International
Carriage of Goods by Road" (CMR).
Air Waybill (AWB)
The Air Waybill constitutes the proof of the carriage contract, the
taking of responsibility for the goods and the documentation of
the prices. It certifies the effective shipment once the carrier has
entered the date and number of the flight. It is standardized by
the IATA (International Air Transport Association), that moreover,
develops solutions for the dematerialization of AWB's.
In the case of grouping, when goods are gathered with other
goods to complete a load for the same destination, the forwarder
that groups the goods becomes legally, with respect to the
carrier, the shipper and thus the drafter of the parent air waybill,
referred to as the Master Air Waybill (MAWB). A "daughter" air
waybill referred to as the House Air Waybill (HAWB) documents
the contract between the forwarder and each of the shippers
included in a grouping.
Rail Consignment Note (CIM)
The Rail Consignment Note (CIM) or International Consignment
Note is a document governed by the 1980 Convention concerning
International Carriage by Rail (COTIF-CIM). It is issued by the
carrier and is considered as the rail carriage contract. This
document is non-transferable and is not requested upon arrival.

Test: Marketing SSS2 First Term Final Assessment

1. Does transportation generate employment?

True

False

2. Does transportation never help in exchange for foreign currency?

True

False

3. Does transportation promote international trade?

True

False
4. Transportation can be described as the physical movements of products from places
of manufacturing to other channels of distribution to get to the hands of the ultimate
users?

True

False

5. Transportation does not promote transnational and cultural relationships and

languages?

True

False

6. Motor transport is not as reliable as rail transport?

True

False

7. _______ involves trains that carry heavy plants and machinery?

road transport

rail transport

sea transport

cargo transport

8. ________ is the transport or movement of people, animals or goods from one

location to another location on land?

road transport

rail transport
sea transport

land transport

9. _________ is the safest form of transport?

road transport

rail transport

sea transport

cargo transport

10. _________ include vehicles such as trailers, buses, cars,etc. that carry products
from one place to another?

road transport

rail transport

sea transport

cargo transport

11. . Air transport is the fastest mode of transport?

True

False

12. Air transport is the riskiest form of transport?

True

False
13. . __________ include the aeroplanes, cargo planes, helicopters, jets?

road transport

rail transport

sea transport

air transport

14. Do the aircraft have a small carrying capacity?

True

False

15. Air transport is unreliable as it depends on the weather forecast?

True

False

16. Maintenance cost in rail and road transport is quite high but the maintenance cost of
water transport is quite less?

True

False

17. Does water transport include the speed boat, canoes, ships, vehicles, and tricycle?

True

False

18. Water transport is riskier as compared to other means because there is always the
danger of sinking ships or boats?
True

False

19. Heavy and bulky goods can be transported easily at little cost through water
transport?

True

False

20. India’s foreign trade is mainly dependent on water transport?

True

False

21. __________ certifies the effective shipment once the carrier has entered the date
and number of the flight?

sea waybill

bill of landing

rail consignment note

air waybill

22. _____________ is a contract for maritime carriage that specifies the taking of
responsibility, or the loading, of goods by the carrier?

sea waybill

bill of landing

rail consignment note

consignment note

23. __________ certifies the carrier's taking of responsibility for the merchandise and
shipping upon signature by the carrier?

sea waybill

bill of landing

rail consignment note

consignment note

24. __________ documents only the carriage contract signed by the shipper and the
maritime transport line and represents the receipt of the goods?

sea waybill

bill of landing

rail consignment note

consignment note

25. ___________ is issued by the carrier and is considered as the rail carriage
contract?

sea waybill

bill of landing

rail consignment note

consignment note