Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:
Cornitos’ has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customer through internet selling.
Identify the decision related to the element of marketing mix being discussed above.
Options:
Storing and assorting products in order to create time utility
Regarding the channels or using intermediaries
Both (1) and (2)
Regarding branding, packaging, labelling
Correct Answer:
Regarding the channels or using intermediaries
Explanation:
In case of large number of consumer products, the potential buyers are scattered over a wide geographical area. In order to contact these people efficiently and effectively, it is important to take the help of number of intermediaries as contacting them directly may not be cost effective and may be difficult even otherwise. These people, institutions, merchants, and functionaries, who take part in the distribution function, are called ‘Channels of Distribution’.