Exam 10: Channels of Distribution

BizCo is a B2B firm specializing in selling highly complex computer networking systems and software that allow clients to work more efficiently. Mark is the VP of Sales at BizCo, and is concerned about some of the complaints he's received from customers and prospective customers. Which of the following is one of the complaints Mark is MOST likely to hear?

The downstream partners that help a company reach consumers comprise the channel members.

Storage and display are activities.

Some products are complicated and expensive, and require the help of a salesperson for a customer to make a purchase decision. These product, therefore, need to be distributed .

Barnes & Noble started as a retailer but then opened warehouses to stock books and later began publishing "classics" with its own imprint. This is an example of which of the following?

The system with an intermediary channel member is more efficient than all firms going direct to consumers.

BrainTrust company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?

When a manufacturer gives an incentive to a retailer as a part of push marketing, the retailer has to pass that incentive on to the customer.

strategies are incentives a manufacturer offers to its distribution partners such as dealers, wholesalers, retailers, and the like to sell products to the end users.

Archie and Betty are examining the way their firm manages the sales process, and they are considering making some changes. They feel their sales force is not as effective as it should be. In making their decision as to whether or not to maintain a sales force, they should keep in mind that although sales forces are useful, they are also expensive to maintain.