Marketing Channels and Channel Intermediaries

which of the following statements is true regarding marketing channels and channel intermediaries

The most important distinction between marketing channels and channel intermediaries is that a channel intermediary assists in the distribution process, but does not hold title to the goods. These intermediaries generally operate on a contractual basis, sell only in a specific geographic area, and handle non-competing lines of goods. They serve as a temporary representative of the seller and buyer, and can be eliminated if a company no longer needs their services.

In general, manufacturers allocate some of their marketing flows to channel intermediaries. Channels perform various functions, such as collecting market research information, disseminating persuasive communications, and acquiring funds and assuming risks. Channels also assist with the storage and movement of goods. They help a producer reach a wider range of consumers and perform functions that the sales force is unable to do.

Trade promotions can be broadly classified into two broad categories: pull and trade. In the latter category, the goal of trade promotions is to encourage intermediaries to carry a particular product. These promotions are commonly known as ________ activities. Price-oriented promotions, on the other hand, target households that are sensitive to price. A good example of a price-oriented promotion is an offer to a brand-name-advertising intermediary in exchange for a certain amount of money or goods.

Which of the following statements is true regarding marketing channels? Using channel intermediaries depends on the type of product and the type of intermediaries. While the process of marketing varies greatly from one product to another, it is essential to understand how a product moves through each step. Marketing channels vary in cost, availability, and profitability. Depending on the size, manufacturing process, and cost of distribution, a product may be sold by more intermediaries than in a direct-to-consumer model.

Which of the following statements is true about marketing channels and channel intermediaries? once again: intermediaries act as an agent between creators of merchandise and consumers. By acting as a middleman between the two, intermediaries enable companies to profit before the final buyer. Channel intermediaries also help with logistics, ensuring timely delivery of products. For this reason, intermediaries are essential to the success of many businesses.

Direct marketing is not always effective, and often discourages customers. Trade promotion techniques, like free samples and coupons, usually involve direct contact with consumers. Trade promotions involve a combination of long and short channels, with the latter being more expensive. While increasing the number of channels increases sales and profits, they can also create a complex system with little profit for intermediaries. And the more complex the system, the longer the distribution channel will be.