Commercial Applications
Direct selling eliminates the need for intermediaries and can result in higher profit margins for the manufacturer.
- True
- False
Answer
True
Reason — In direct selling, the producer directly sells goods to ultimate consumers and there is no middleman or intermediary. By eliminating middlemen, the manufacturer saves the commission and margins paid to them, which can result in higher profit margins. The producer also has direct contact with customers and full control over distribution.
Related Questions
Berrylicious is a very famous wafer brand among children, currently in its growth stage. Which of the following statements is/are correct about this stage?
(1) Competition is virtually absent.
(2) Marginal producers are forced to go out of the market.
(3) Promotional expenditure remains high.
(4) Sales may decline rapidly.
- Only 2
- Only 2 and 3
- Only 1 and 4
- Only 1
How do customers know about the new product in the market?
- Branding
- Pricing
- Promotion
- Labelling
This marketing component is most likely to be standardized ……………
- Brand
- Price
- Advertising
- Distribution
Which stage of the product life cycle is marked by falling costs and rising revenues?
- Introduction stage
- Growth stage
- Maturity stage
- Saturation stage