One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability.The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability.The extent to which channel members share costs determines the margins received by each member and by the channel as a whole.While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability.Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.

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17-12-2022
Business

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One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of the following statements would be most accurate?The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability.The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability.The extent to which channel members share costs determines the margins received by each member and by the channel as a whole.While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability.Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.

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AyanBango AyanBango · Answer 1 · 2022-12-23T11:11:14+01:00

The most accurate statement regarding profitability and marketing channels is that the extent to which channel members share costs determines the margins received by each member and by the channel as a whole.

What is margin?

Margin is a term used to describe the difference between the amount of money you have invested in something and the profits or losses you make on that investment. It is the amount of money that is left over after your total costs (such as taxes, fees and commissions) have been paid. For example, if you buy a stock for $100 and sell it for $120, you will have a margin of $20. It can also refer to the amount of money you have to put down in order to purchase a security, such as a stock, bond or mutual fund. This is also known as the minimum margin requirement. Margin trading allows investors to borrow money from their broker and invest more than their own capital. Although it can amplify potential profits, it also increases the risk of losses.

As each member of the channel takes on more responsibilities in terms of distribution, advertising, and selling expenses, the margins received by each member and the channel as a whole can be increased. However, the manufacturer should always remain responsible for advertising expenses if the firm is looking for the greatest profitability. Finally, profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.

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