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Trade Margin in Marketing

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Why is trade margin an important aspect,in the financial aspects of marketing?

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Solution Summary

Cost of using a distributor or dealer is discussed step-by-step in this solution. The response also contains the sources used.

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In the financial aspects of marketing, the marketer seeks to reduce the costs of marketing so that the price charged to the consumer can be kept at its lowest. The price strongly affects the competitiveness of the marketer. In addition, lowering the cost of marketing helps increase the profitability of the product. In case the marketer uses a distributor or a dealer, the trade margin is an important cost of marketing. The trade margin affects the price at which the goods are sold to the customers. In addition, the trade margin also ...

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