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Week 7 Assignment

In: Business and Management

Submitted By leister
Words 336
Pages 2
Marketing Management 6805

9.1 Channel Mapping and Pocket Price
1.) How does the overall average pocket price change if the business modify its sales mix to 30 percent direct sales, 40 percent agent-distributor and 30% distributor-retailer.
In this scenario if the overall pocket price is changed to 30% direct sales, 40% agent-distributor, and 30% distributor-retailer ther overall pocket price decreases from $4,540 to $3,993. This shows us that the average percent of sales per channel would be lower overall if we adjusted the channels to the above percentages.
2.) How the would the average pocket price change if the business replaced the direct sales channel with the agent-distributor channel such that the sales mix was 60 percent agent-distributor and 40 percent distributor-retailer?
In this scenario the pocket price would decrease even further from $4,540 to $1,680. This shows us that eliminating the direct channel reduces the percentage of sales from that channel and thus overall reducing the pocket price, compounded with the increase of the agent distributor channel.

9.2 Marketing Channel Profitability
1.) How does the overall average pocket price change if the business modify its sales mix to 30 percent direct sales, 40 percent agent-distributor and 30% distributor-retailer.
In this scenario though the pocket price decreases the Marketing ROI increases from 236% to 262% and in turn results in a higher percent margin of 33.3% from 32.2%.
2.) How the would the average pocket price change if the business replaced the direct sales channel with the agent-distributor channel such that the sales mix was 60 percent agent-distributor and 40 percent distributor-retailer?
In this scenario the Marketing ROI increases dramatically from 262% to 371% however due to the loss in direct sales channel there is an overall percent margin decrease to 32%. This…...

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