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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Definitions:

Growing Economy

Describes an economy that is experiencing an increase in goods and services produced over time, indicative of economic development and expansion.

Interest Rate

The cost of borrowing money or the return on savings, expressed as a percentage of the amount borrowed or saved.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed as an annual rate.

Investment Project

A project involving the allocation of funds or resources towards a venture with the expectation of generating income or profit in the future.