Suppose the president of a carpet manufacturing firm has asked you to look into the possibility of bypassing the firm’s wholesalers (who sell to carpet, department, and furniture stores) and selling direct to these stores. What caution would you voice on this matter, and what type of information would you gather before making this decision?
Answer to relevant QuestionsWhat type of channel conflict is likely to be caused by dual distribution, and what type of conflict can be reduced by direct distribution? Why?In retail pricing, retailers often have a maintained markup. Explain how this maintained markup differs from original markup and why it is so important.Comment on this statement: The only distinction among merchant wholesalers and agents and brokers is that merchant wholesalers take title to the products they sell.Identify the sales promotion tools that might be useful for (a) Tastee Yogurt, a new brand introduction, (b) 3M self-sticking Post-it® Notes, (c) Wrigley’s Spearmint Gum.Some national advertisers have found that they can have more impact with their advertising by running a large number of ads for a period and then running no ads at all for a period. Why might such a fighting schedule be more ...
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