Answer to Question #262283 in Marketing for Safina jillo

Question #262283

Question Two

Through distribution, producer’s (manufacture’s) product can pass to a wholesaler, then to a retailer before finally reaching a consumer. Alternatively, it may go first to a retailer finally to reach a consumer. In these cases, there are intermediaries between the producer and the finally consumer. However, the producer can sell directly to the final consumer. In this case, there is no an intermediary. The intermediaries may be short or long. It is long, for instance, when the product passes through an agent, a wholesaler, retailer, and short when it only passes through a retailer to reach a consumer. Intermediaries, such as retailers and wholesalers, tend to add efficiency because they can do specialized tasks better than the consumer or the manufacturer. Using the case study, Describe the two classifications of distribution channel and show how Intermediaries add efficiency to the system. (15marks)

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