Question

Respond to the following in a minimum of 175 words: What marketing costs can be transferred to a distributor if a manufacturer decides to stop shipping direct to the customer and and use a distributor?

Answer 1

Marketing Cost

The cost incurred in the promotion and delivery of goods and services to the customer is known as the marketing cost. This process plays a vital role in connecting the customers with the organization and helping the organization establish itself in the market and achieve its organizational goals and objectives. Like any other cost that occurs while operating the organization marketing cost is also needed to be carefully monitored and controlled in order to save financial resources of the organization and to make sure this happens the organization chooses to ship the product and services to the distributor instead of shipping directly to the customer.

Now let us discuss which cost can be transferred when the organization starts shipping goods and services to the distributor instead of shipping directly to the customers.

• As the motive of the marketing team is promote and deliver the product to expand the organizational boundaries and by using distributor they can contact multiple distributors of different locations and this will be marketing cost of promoting the goods and services everywhere as it will be done by the distributors itself and this will really help to get new customers and still save a lot of costs.
• It also helps to save the delivery cost as in the situation when the organization delivers products and services directly to the customers can be expensive as they need to deliver each and every customer in different locations but when using distributor they need to only deliver the lot to the distributor and rest expense is faced by the distributor.