Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 13.14MA
Summary Introduction
Case summary:
Company W manufactures the bicycles that are sold through the retail bicycle shops in Country U. The firm has 2 salespeople and they maintain good relationship with the bicycle shops to better meet the customer’s requirements. The firm’s owner is planning to maximize it to rest of the country, which requires more salespeople to be hired. Every salesperson gets $40,000 in addition to 2% commission on every yearly sales. Another way is to utilize the sales agents for which they will be paid 5% of sales.
Characters in given case:
Company W
To compute: The level of sales and explain the benefits and disadvantages of utilizing the own sales force company versus the independent agents.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Company Miraitowa is manufacturing a range of bulk novelty products to be sold at the Olympics in Tokyo. Company Miraitowa is located in Beijing China. Examples of the products include key rings, caps, socks and vacuum insulated water bottles to name a few. Answer the following questions related to Company Miraitowa.
Briefly state the alternative channels of distribution Company Miraitowa can use to get the novelty products to the customers
Distribution systems and strategies do not guarantee the success or growth of e-commerce and e-business in the distribution industry. However, recognising the importance of distribution systems and strategies and developing and continuously improving distribution systems significantly affected the current success of Amazon. Analyse these statements and advise Amazon on the factors to consider when selecting a distribution channel.
The AB e-commerce company has started operating by using a 3PL partner and benefits from saving time and money with a more streamlined order fulfillment process and inventory management. By outsourcing fulfillment, the 3PL is automatically notified when an order is placed.Also, partnering with a 3PL helps reduce logistics costs in the long run. Unlike hiring an internal team to manage inventory and shipping, 3PLs store the inventory and their team of fulfillment experts are trained to keep overall logistics costs down. Furthermore, 3PL arrangement helps split inventory across locations so the company can eliminate shipping to the highest, most expensive shipping zones and keep inventory closer to more customers.To have a more integrated distribution process, would reducing dependency on 3PL be a viable option in the long term for the AB company for cost management and control? Justify with your understanding of supply chain management concepts. also, using your knowledge of other open…
Chapter 13 Solutions
Marketing: An Introduction (13th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Most of the jewellers sell and market their own brand of jewellery and/or watches. It is usually a vertical-market operation, does not utilise local suppliers, and does not distribute to third-party stockists on a large scale. (Source: Jewellermagazine.com) Explain the most appropriate category of vertical marketing system (VMS) adopted by the jewellers. Identify a real company that adopted the same category of VMS in other industries and explain how the company implemented the system.arrow_forwardA retailer's supply chain includes the vendors that supply products, warehouses that store the product, distribution centers that deliver product to the retailers, and retailers who offer the product to the ultimate purchaser. An effective supply chain is crucial to any business and can result in lower costs, improved profitability, and greater customer satisfaction and loyalty. Although Target continues to be a powerful player in the U.S. retail market, it has had an ongoing problem with out-of-stock product. Experts say a major cause of this problem is that Target's supply chain was designed for brick-and-mortar store operations and isn't able to handle the additional demand and complexities of online orders. CEO Brian Cornell has recognized this as a critical problem for the retailer, noting that "Target's growth hinges on our ability to enhance the fundamental aspects of our business, starting with the supply chain." So when Target recently decided to upgrade its supply chain, it…arrow_forwardA fish farmer in central Malaysia is looking at marketing channels for his fishes. There are three general marketing channels available to the fish farmer: Sell to wholesaler Sell to retailer Sell directly to consumers Discuss the advantages and disadvantages of each marketing channel for the fish farmer. State and justify which marketing channel would be most profitable for the fisharrow_forward
- The themes of Unit 6 are creating value for customers through marketing channels and management of the supply chain. Make a journal entry that explains the structure of the logistics process in your country.arrow_forwardHow has the Internet transformed the ways in which tourism products (goods and/or services) are distributed? What are the advantages and disadvantages of online booking systems for suppliers and intermediaries? Why would customers in the tourism distribution system choose to use or not to use online booking systems? this is basic on tourism industry and not businessarrow_forwardSupply Chain Logistics networks are designed to maximize operational efficiency. Companies attempt to optimize logistics through either a developed network or designing their own network. Discuss when it would be appropriate for a company looking to expand to design their own logistics network or utilize a 3pl or 4pl provider. Specifically address what criteria company would use to make this decision.arrow_forward
- discuss four justifications for wholesaler operations in Ghana’s Tourism Industry and give examplesarrow_forwardLogistics management focuses on the efficiency and effective management of daily activitiesconcerning the production of the company’s finished goods and services. This type of managementforms part of supply chain management and plans, implements and controls the efficient, effectiveforward, and reverse flow and storage of goods. This process, as mentioned, happens between thepoint of origin and the point of consumption in order to meet requirements set by customers.The main aim of logistics management is to allocate the right amount of a resource or input at the righttime. It is also ensuring that it gets to the set location in a proper condition while delivering it to thecorrect internal or external customer. Logistics management is also crucial for creating visibility intoany company’s supply chain. As historical data is analyzed and the movement of goods is tracked inreal-time by advanced transportation management systems (TMS), logistics uses this information forprocess…arrow_forwardExplain multi-channel distribution systems while also describing the advantages of disadvantages of this system.arrow_forward
- Describe What is the relationship between transportation models and more general logistics models?arrow_forwardThe world’s largest retailer, Walmart, owns and manages its own fleet of trucks. The company has often received praise for its distribution capabilities. The practice, however, seems to represent a stark contrast to the practice of outsourcing not only shipping, but other logistics operations to third-party logistics providers. Address the advantages and disadvantages of these different policies. Under what conditions would it make sense for a firm to own and manage its own trucking operation?arrow_forwardThe basic purpose of the supply chain is to fulfill demand, drive customer value, improveresponsiveness, facilitate financial success and build a good network what focused areas shouldbe considered in logistics management?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
