MINI-CASE Dow Corning Has Been a Market Leader in Silicon Technology

question 37

Multiple Choice

MINI-CASE
Dow Corning has been a market leader in silicon technology applications for over 50 years.Its products span many market applications in electronics,construction,health care,and a multitude of industrial applications.However,as some of its product-market applications reached the mature stage of the product life cycle,they became less competitive.Dow Corning's full service consultative engineering approach did not work in more mature,price-sensitive market applications.It was also unprofitable for Dow to pursue these customers as they represented a majority of target customers but only represented 20% of the revenue potential for the total market for their products.
-Mini-Case Question.In which of the following situations is Dow using a mixed channel system?

• A)Instead of using salespeople,Dow uses manufacturer's representatives and brokers,and pays them a commission on every product sold.
• B)Retailers take over Dow's sales and point-of-purchase distribution in consumer markets,but distributors or dealers assume this responsibility in B2B markets.
• C)Dow uses primarily direct mail and catalog sales to market its products,but also uses telemarketing to target large customers.
• D)Dow distributes its products directly to customers in the innovation/technology segment but finds that use of wholesale distributors and dealers are more efficient in reaching the service quality segment.
• E)Dow uses manufacturers' representatives,sales agents,and brokers who assume the selling responsibility for the business and receive a commission when a sale occurs,but do not take title to the products.

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