Chapter 15

Question 1

Channel of Distribution:

Answer 1

the path that a product takes from producer to consumer

Question 2

Agent or Broker

Answer 2

Any intermediary with legal authority to act on behalf of the manufacturer

Question 3

Wholesaler

Answer 3

An intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets

Question 4

Retailer

Answer 4

An intermediary who sells to consumers

Question 5

Marketing Channel

Answer 5

Marketing Channels make possible the flow of goods from a producers, through intermediaries, to a buyer

Question 6

Functions Performed by Intermediaries:

Answer 6

-Transactional Function
- Logistical Function
- Facilitating Function

Question 7

Transactional Function:

Answer 7

• Buying: Purchasing products for resale or as an agent for supply of a product
• Selling: Contacting potential customers, promoting products, and seeking orders
• Risk taking: Assuming business risks in the ownership of inventory that can become obsolete or deteriorate

Question 8

Logistical Function:

Answer 8

• Assorting: Creating product assortments from several sources to serve customers
• Storing: Assembling and protecting products at a convenient location to offer better customer service
• Sorting: Purchasing in large quantities and breaking into smaller amounts desired by customers
• Transporting: Physically moving a product to customers

Question 9

Facilitating Function:

Answer 9

• Financing: Extending credit to customers
• Grading: Inspecting, testing, or judging products, and assigning them quality grades
• Marketing information and research: Providing information to customers and suppliers, including competitive conditions and trends

Question 10

Marketing Channels for Consumer Products and Services:

Answer 10

1. Direct Channel
2. Indirect Channel
   - Retailers
   - Wholesalers->Retailers - Agents->Wholesalers-> Retailers