An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, your job is to troubleshoot the problem and get results. Your instinctive reaction is to open up new channels of distri

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   An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, your job is to troubleshoot the problem and get results. Your instinctive reaction is to open up new channels of distribution. Discuss (at least) five critical questions you should ask yourself before going ahead with your plan. Justify your response with logical reasoning 

  

Q1.  Has buyer behavior changed?

  

Q2.  Are intermediaries charge very high commission?

  

Q3.  Does the producer want to increase or decrease control over how, to whom, and at what price product is sold?

  

Q4. Has the firm added new products in portfolio?

  

Q5. Has the target customers changed?


    • 7 years ago
    The choice of distribution channel is influenced by market factors (such as buyer behavior, commission of intermediaries etc), producer factors (such as availability of resources, customer based skills to distribute the product etc), and product fact
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