IBM, at One Time Sold Its Products Using Its Own

question 98

Multiple Choice

IBM, at one time sold its products using its own sales force exclusively. Today, however, the market has prompted changes in IBM's distribution philosophy. The company now has 18 new channels in addition to its own sales force. The correct description of this form of marketing would be to characterise IBM's approach as being one where_________ are used.

• A) horizontal marketing systems
• B) diversified marketing systems
• C) vertical marketing systems
• D) hybrid marketing systems
• E) parallel marketing systems

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Definitions:

Agency Agreement

A contract where one party (the agent) agrees to act on behalf of another party (the principal) in commercial transactions.

Principal

The amount of money originally invested or loaned, in contrast to interest or profit earned on that amount.

Partially Disclosed

Pertains to transactions or agreements where some but not all relevant information is revealed to one or more parties involved.

Apparent Authority

The situation in which an agent's actions lead a third party to reasonably believe that the agent has the authority to act on behalf of the principal.