Podcast
Questions and Answers
When is it necessary to employ retailers for a product?
When is it necessary to employ retailers for a product?
When the product is meant for the consumer market.
What are the important factors regarding the nature of the market?
What are the important factors regarding the nature of the market?
Whether the product is meant for consumer or industrial buyers, the number of potential customers, geographic concentration of the market, and order size.
What should be done if the product is meant for both consumer and industrial markets?
What should be done if the product is meant for both consumer and industrial markets?
More than one channel will have to be employed.
How does the geographic concentration of the market influence the selling strategy?
How does the geographic concentration of the market influence the selling strategy?
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In what circumstances may direct selling be economically feasible?
In what circumstances may direct selling be economically feasible?
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Study Notes
Market Nature
- The market nature is a crucial factor in determining the distribution channel strategy.
- The type of market, whether consumer or industrial, affects the choice of distribution channels.
Distribution Channels
- Consumer markets often require retailers to be employed.
- Industrial markets may require different distribution channels, including multiple channels if the product is meant for both markets.
Customer Base
- A large number of potential customers may necessitate the use of multiple intermediaries.
- A small customer base may allow for the company's sales force to handle sales directly.
Geographic Concentration
- If customers are concentrated in a few areas, direct selling can be effective.
- Widespread customer bases may require a large number of intermediaries.
Order Size
- Large sales volumes can make direct selling economically feasible, such as in the case of food products sold to grocery chain stores.
Industrial Operating
- Geographic concentration and order size are important considerations in industrial operating contexts.
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Description
Test your understanding of market nature and channel selection with this quiz. Explore the factors influencing market selection, such as consumer vs. industrial buyers, retail distribution, and the impact of potential customer base on channel decisions.
