Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

Which marketing function helps businesses match supply with demand?

1. Promotion

2. Distribution

3. Product development

4. Pricing

The correct answer is: Distribution

The correct choice focuses on the distribution function, which is crucial for aligning supply with consumer demand. Distribution encompasses the logistics and processes involved in getting products from manufacturers to consumers. It ensures that products are available in the right locations and at the right times, thereby facilitating access for consumers and optimizing sales opportunities. Effective distribution strategies help businesses manage inventory levels, avoid stockouts or overstock situations, and respond to consumer demand fluctuations. By carefully selecting distribution channels and managing them efficiently, companies can ensure their products reach the market effectively, thus matching supply with the demand that exists in different regions or segments. Promotion is primarily concerned with communicating product benefits to consumers, product development focuses on creating new products to meet consumer needs, and pricing deals with setting the right price points. While these functions play important roles in marketing strategy, they do not directly engage in the logistical aspect of matching supply with consumer demand to the same extent as distribution does.