The dramatic growth in online sales in recent years has led many pundits to predict that mail order channels driven by paper catalogs would virtually disappear. But this has not happened. By the close of the first decade of the Twenty First Century, over 17 billion catalogs were mailed to U.S. homes, which helped to produce over $700 billion in sales via this “old fashioned” channel of distribution. Why do you think such vast numbers of paper catalogs are still printed and mailed and such high levels of sales are still generated in mail order channels?
Answer to relevant QuestionsOne of the major themes presented in this chapter is the need for choice as to how products and services are made available to customers. Thus, multi-channel strategies that provide a wide range of channels including an ...Identify and discuss several types of facilitating agencies and the role they play in channels of distribution. The average size of retail units (as measured by sales volume) has been increasing. What are some of the implications of this trend for channel management in producing and manufacturing firms? How does the impact of the environment on channel strategy differ from other major strategy areas of the marketing mix? Explain the four types of competition discussed in the chapter. Why is it important to recognize these different forms of competition?
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