A Company May Be Inclined to Use Both Direct and Indirect

question 80

Multiple Choice

A company may be inclined to use both direct and indirect channels of distribution when

• A)serving multiple target markets.
• B)it wants total control over the marketing mix.
• C)suitable channel partners are hard to find.
• D)selling to business customers.
• E)selling to final customers.

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Definitions:

Average Variable Costs

The total variable cost divided by the quantity of output produced, reflecting the variable cost per unit.

Sales Promotion

A marketing strategy involving the use of short-term incentives to encourage the purchase or sale of a product or service.

Marginal Revenue

The increase in revenue that results from selling one more unit of a product.

Imperfect Competition

A market structure characterized by the presence of several competing firms but which lack the conditions of perfect competition, often leading to market power.