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Medi Instruments Ltd., is a company dealing in the distribution of medical instruments. The company recently imported 15,000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.
In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Hitesh, another Zonal Head, added that since lots of money had been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by Sanjay.
Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.
In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Hitesh, another Zonal Head, added that since lots of money had been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by Sanjay.
Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.
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Question : 32
Total: 32
Also explain briefly the other considerations to be taken care of in each factor identified in part ( a )
Solution:
Other consideration to be taken care of, in each of the factors identified above are:
(i) Product related factor : Nature of the product : Customised product require direct marketing as they involve interaction between buyer and seller where as standarised product are sold through a number of intermediaries.
(ii) Company related factors: Financial health: If the firm has enough fund, it may go for direct selling as it involve huge investment on opening its own retail shops and engaging work force.
If the firm has shortage of funds it may think for intermediaries.
(iii) Market related factors: Nature of Market: For consumer goods, the channels of distribution are mostly indirect, where as for industrial goods direct channels are preferred.
(i) Product related factor : Nature of the product : Customised product require direct marketing as they involve interaction between buyer and seller where as standarised product are sold through a number of intermediaries.
(ii) Company related factors: Financial health: If the firm has enough fund, it may go for direct selling as it involve huge investment on opening its own retail shops and engaging work force.
If the firm has shortage of funds it may think for intermediaries.
(iii) Market related factors: Nature of Market: For consumer goods, the channels of distribution are mostly indirect, where as for industrial goods direct channels are preferred.
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