A firm wants to study the efficiency of its various distribution channels (in terms of computing gross profit as a percentage of revenues). What technique should it use?
A) Marketing cost analysis
B) A horizontal marketing audit
C) Sales exception reporting
D) The 80-20 principle

Question

Quizplus · Accepted Answer

Marketing cost analysis is the correct technique for studying the efficiency of various distribution channels in terms of computing gross profit as a percentage of revenues. This analysis helps in understanding how marketing costs contribute to or detract from gross profit, allowing for optimization of distribution channels.

A Firm Wants to Study the Efficiency of Its Various