LESSON 4

Question 1

A set of interdependent organizations and individuals that facilitate the movement and transfer of ownership of commodities from the producers to the ultimate users

Answer 1

Marketing Channel

Question 2

FUNCTIONS OF THE MARKETING CHANNELS

Answer 2

1. They routinize decisions and work.
2. They finance the process for moving goods from the producers to the consumers.
3. They are active participants in the pricing process.
4. They serve as a channel of communication between the producers and the consumers.
5. They assist in the promotional aspects of marketing.
6. They minimize the number of transactions in the system.

Question 3

marketing channel provides the manufacturers with a much reduced number of people to contact when transactions are made.

Answer 3

Ruotinization of Decisions

Question 4

FINANCING When manufacturers sell directly to consumers, they may have to reckon with the financing of the following:

Answer 4

1. Sales calls to prospective customers 2. Purchase of selling equipment
2. Construction of display stores 4. Extension of credit to customers
3. Training of retail salespersons

Question 5

the difficulty of pricing one’s products is aggravated by lack of direct contact with consumers, especially if they are scattered throughout a wide area of concern.

Answer 5

Pricing

Question 6

The changing requirements of users are oftentimes relayed to the distributor

Answer 6

Channels of communication

Question 7

When the distributor attempts top
increase his sales by promoting his products, he is actually complementing the promotional activities of the manufacturer.

Answer 7

Assistance in promotional activities

Question 8

The distributor plays an important

role in minimizing the number of transactions within the system.

Answer 8

Minimization of number of transactions