Marketing Essentials

Section 2: Distribution Planning

After You Read Online Action

Reviewing Key Terms and Concepts

1. A company may use multiple channels of distribution when its product fits the need of both the industrial and the consumer markets.
2. They must consider costs and control. A direct sales force is costlier to maintain but offers companies a greater control over how its product is sold and allows for easier monitoring of sales agents. Conversely, independent sales agents are cheaper to maintain but harder to monitor and control.
3. E-marketplaces for B2B operations provide one-stop shopping and the potential for substantial cost savings.

Integrating Academic Skills

4. Manufacturer A’s sales expense  =  $280,000. Manufacturer B’s rate = 7%. Manufacturer B’s rate is lower.
5. Code of ethics statements will vary; your rewrites should demonstrate an understanding of the terms.