Can you please give me four examples that will explain the four channels below
Channel advantage is very similar to competitive advantage in that it occurs in companies that are successful in switching their customers to lower cost channels without having to assume the loss of sales or deterioration in service or quality. For example a Chicago manufacturer wants to sell its items on the West Coast and has to decide between 2 alternatives. The first one calls for hiring 10 new sales reps who would operate out of a sales office in San Francisco and would receive a both a base salary and commission. The other alternative would be to use a San Francisco manufacturer's sales agency that has extensive contracts with retailers. The agency already has 30 reps and would receive commission based on sales only. First the manufacturer has to determine which alternative would produce more sales. Second it must determine the cost of selling different volumes through each channel. After doing this the manufacturer will pick with channel is more economical to it and will lead to an increase in sales without forgoing ...
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