9.2 Marketing Channel Profitability (Figure 9-5)How does the net marketing contribution and marketing ROI change if the business modifies its sales mix to 30% direct sales, 40% agent distributor, and 30% distributor retailer?How does the net marketing contribution and marketing ROI change if the business replaces the direct sales channel with the agent-distributor channel, with a sales mix of 60% agent distributor and 40% distributor retailer? FIGURE 9-5 CHANNEL STRATEGIES AND CHANNEL TRANSACTION PROFITABILITYArea of PerformanceDirectMixedIndirectTotalChannel StrategyDirectAgentWholesalerSales& Dealer& DealerTarget CustomerLargeMediumSmallServedAccountsAccountsBuyersMarketPercent of Sales40%20%40%100%Revenue per Purchase$10,000$3,000$1,000$5,000Retailer Discount20%Wholesale Price$3,000$800Distributor Discount15%15%Sales Agent Commission5%0%Net Price$10,000$2,400$680$4,752Company Sales Commission0%0%0%Transaction Cost5%2%1%Pocket Price$9,500$2,352$673$4,540Cost of Goods Sold$6,000$1,500$500$2,900Percent Margin36.8%36.2%25.7%36.1%Marketing & Sales Expense (%)15.0%8.0%5.0%9.6%Marketing & Sales Expense ($)$1,425$188$34$436Net Marketing Contribution$2,075$664$140$1,204Marketing ROS21.8%28.2%20.8%26.5%Marketing ROI146%353%415%276%

How does the net marketing contribution and marketing ROI change if the business modifies its sales mix to 30% direct sales, 40% agent distributor, and 30% distributor retailer? How does the net marketing contribution and marketing ROI change if the business replaces the direct sales channel with the agent-distributor channel, with a sales mix of 60% agent distributor and 40% distributor retailer?

How does the net marketing contribution and marketing ROI change if the business modifies its sales mix to 30% direct sales, 40% agent distributor, and 30% distributor retailer? How does the net marketing contribution and marketing ROI change if the business replaces the direct sales channel with the agent-distributor channel, with a sales mix of 60% agent distributor and 40% distributor retailer?

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter14: Marketing Channels And Supply Chain Management

Section14.1: Taza Cultivates Channel Relationships With Chocolate

Problem 1VC

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