Marketing Essentials

Section 2: Distribution Planning

After You Read Online Action

Key Terms and Concepts

1. A company may use multiple distribution channels when its product fits the need of both industrial and 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.

Academic Skills

4. Manufacturer A's sales expense = $280,000. Manufacturer B's rate = 7 percent. Manufacturer B's rate is lower.
5. Code of Ethics statements will vary; student rewrites should demonstrate an understanding of the terms.