Under which of the following conditions may a manufacturer wish to have its own sales force?
A) The manufacturer is a small player in its category.
B) The market for its products is geographically concentrated.
C) The products require minimal presale and postsale services.
D) The market consists of many small customers.

Question

Under which of the following conditions may a manufacturer wish to have its own sales force?
A) The manufacturer is a small player in its category.
B) The market for its products is geographically concentrated.
C) The products require minimal presale and postsale services.
D) The market consists of many small customers.

Quizplus · Accepted Answer

The direct channel is often used in the distribution of organizational goods as most organizational markets often have relatively few but extremely large customers. Also, many organizational products need a great deal of presale and postsale service. Agents are used in cases where manufacturers do not wish to have their own sales forces. Such an arrangement may be used by small manufacturers, when the market is geographically dispersed, or when the market consists of many small customers. Under such conditions, it may not be economical for sellers to have their own sales organization.

Under Which of the Following Conditions May a Manufacturer Wish