BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

INTERNATIONAL MARKETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Channel designers develop distribution systems that minimize costs. The idea that all costs must be taken into consideration when designing a channel of distribution is called ____
A
A total cost concept
B
A marginal cost concept
C
A perpetual cost concept
D
An inventory cost concept
Explanation: 

Detailed explanation-1: -Channel design is the strategic process that commercial organizations use to balance resources across direct and indirect channels or routes to market. Direct channels typically include field sellers and e-commerce platforms, while indirect channels can include a mix of partners, distributors and marketplaces.

Detailed explanation-2: -Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer.

Detailed explanation-3: -1) Market Variables Market variables are the most fundamental variables to consider when designing a marketing channel.

Detailed explanation-4: -Distribution channels offer salesmanship: The distribution channels offer pivotal role of a sales agent. They help in creating new products in market. They specialize in word of mouth selling and promotion of products. They assure pre-sale and post-sale service to the consumers.

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