One important reason channel members are included between producers and end users is to overcome discrepancies. Name and briefly describe four discrepancies channel members overcome.
What will be an ideal response?
DISCREPANCY OF QUANTITY. Large quantities produced to achieve low unit costs create quantity discrepancies (the amount of product produced compared to the amount an end user wants to buy). Marketing channels overcome quantity discrepancies by making products available in the quantities that buyers desire.
DISCREPANCY OF ASSORTMENT. This discrepancy occurs when mass production does not allow a firm to produce all the items necessary for buyers to receive full satisfaction from products. Marketing channels overcome discrepancies of quantity by assembling assortments of products that buyers want in one place.
TEMPORAL DISCREPANCY. This is created when a product is produced but the consumer is not ready to purchase it. Marketing channels overcome temporal discrepancies by maintaining inventories in anticipation of demand.
SPATIAL DISCREPANCY. Mass production requires a large number of potential purchasers, so markets are usually scattered over large geographic regions. Marketing channels overcome spatial discrepancies by making products available in locations convenient to consumers and business buyers.
You might also like to view...
How did the Plymouth Company endeavor to create a colony in New England differ from previous English colonies like Jamestown?
a. It had a strong religious component and goal. b. It lacked backing by a royal charter. c. It involved no debts to the crown. d. It was not a business venture.
Cozy Country Market entered the candle business with a unique product: a line of candles made from soy that produces less smoke and lasts up to twice as long as other candles. The firm sold this unique product exclusively to a few niches
The candles were priced at twice the cost charged for normal candles. The product was also sold online and in unconventional outlets not dominated by market leaders. In this case, Cozy Country Market was using a(n) ________ against the market leaders. A) pre-emptive attack B) guerrilla attack C) counter offensive attack D) indirect attack E) frontal attack
Quantitative research is most likely to be used when:
A. the objective is to validate relationships and test hypotheses. B. the objective is to identify new ideas and thoughts for a product. C. the objective is to understand hidden underlying psychological processes. D. one has access to small samples. E. the main goal is to uncover unanticipated findings and reactions.
Recruiting third country sales professionals may be problematic for the firm because they will lack an understanding of _____________________.
(a) The firm’s products (b) Host-country culture (c) Home-country culture (d) All of the above (e) (b) and (c) only