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Marketing: Developing a Channel of Distribution

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Marketing: Developing a Channel of Distribution

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Questions and Answers

Which of the following is a primary reason for developing a channel of distribution?

To make the product easily available to customers (correct)

To increase the price of the product

To reduce the number of intermediaries involved

To eliminate competition

What is a key benefit of developing a channel of distribution?

Increased customer satisfaction (correct)

Increased production costs

Reduced marketing efforts

Improved product quality

Which of the following is not a reason for developing a channel of distribution?

To reduce transportation costs

To provide after-sales service

To increase sales volume

To improve product quality (correct)

What is a potential consequence of not developing a channel of distribution?

<p>Reduced market share</p> Signup and view all the answers

Why is it important to develop a channel of distribution that meets customer needs?

<p>To improve customer satisfaction</p> Signup and view all the answers

Study Notes

Channel of Distribution

A primary reason for developing a channel of distribution is to make a product or service available to the target market.

Benefits of Developing a Channel of Distribution

A key benefit of developing a channel of distribution is to increase customer convenience, reduce transaction costs, and enhance customer satisfaction.

Reasons for Not Developing a Channel of Distribution

Not having a strategic business goal is not a reason for developing a channel of distribution.

Consequences of Not Developing a Channel of Distribution

A potential consequence of not developing a channel of distribution is reduced sales, poor customer satisfaction, and loss of market share.

Meeting Customer Needs

It is important to develop a channel of distribution that meets customer needs because it ensures that products or services are available to the target market at the right time, in the right place, and in the right quantities.

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Description

This quiz assesses understanding of developing a channel of distribution, including reasons, benefits, and consequences. It covers the importance of meeting customer needs and potential outcomes of not doing so.