Capital requirements are likely to be less when intermediaries take on much of the responsibility for promotion in the channel.

Question

Quizplus · Accepted Answer

Intermediaries such as wholesalers, retailers, and distributors can help promote and sell a company's product, reducing the need for the company to spend as much on advertising and other promotional activities. This can lower the capital requirements for the company.

Capital Requirements Are Likely to Be Less When Intermediaries Take