Changing market locations,resulting from geographical boundaries of existing markets expanding or the opening up of new,more distant markets,should signal the channel manager that:
A) Shorter channels are definitely needed.
B) A higher level of intensity is called for.
C) Modifications in channel structure may be needed.
D) Intermediaries should be dropped.
E) Market density is increasing.

Question

Quizplus · Accepted Answer

When market locations change, either through the expansion of existing markets or the opening of new ones, it may be necessary for the channel manager to modify the channel structure. This is because the current channels may not be reaching the new markets effectively or efficiently. Shorter channels or a higher level of intensity may be necessary as well, but these decisions should be based on a careful analysis of the new market conditions. It is not necessarily the case that intermediaries should be dropped, and while market density may be increasing, this is not the primary consideration when determining the appropriate channel structure.

Changing Market Locations,resulting from Geographical Boundaries of Existing Markets Expanding