Exam - Q6

Question 1

Marketing channel

Answer 1

A marketing channel (also known as a distribution channel), is a set of interdependent organisations involved in the process of making a product or service available to users. A marketing channel consists of various channel levels, these are layers of intermediaries who perform some work in bringing the product and its ownership closer to the final buyer

Question 2

Advantages of manufacturer to wholesaler channel

Answer 2

Distribution costs associated with bringing the products to market are significantly reduced.
Companies who do so are able to out-compete their competitors in the industry.

Question 3

Disadvantages of manufacturer to wholesaler channel

Answer 3

Due to the bulk of products involved is a loss of quality.
Retailers such as Costco will often require consumers to pay for a membership in order to be able to purchase products from their store

Question 4

Retailer

Answer 4

A retailer is a business whose sales come primarily from retailing. Retailing involves all activities involved in selling goods or services directly to final consumers for their personal, non-business use

Question 5

Wholesaler

Answer 5

A wholesaler is a firm engaged primarily in wholesaling activity. Wholesaling involves all activities involved in selling goods and services to those buying for resale or business use