WAEC Marketing 2015 Theory question 101

Theory question 101

Distribution

(a) State five importance of middlemen in marketing.
(b) Explain five factors that can determine the type of channels of distribution to be used by a company.

Show the model answer
Model answer

(a) Any five: break bulk into small quantities; link producers and consumers; store goods (warehousing); transport goods closer to consumers; give credit to retailers/consumers and finance producers; pass market information both ways; help promote and sell the product; grade, sort and repackage goods; bear some risks.
(b) Any five, each explained: nature of the product (perishable, bulky, technical goods need short channels); size and spread of the market (many scattered buyers need middlemen); the firm's resources (capital to run its own outlets); degree of control wanted over price and display; availability and cost of suitable middlemen; channels used by competitors; government regulations; the marketing environment.

Explanation

List five clear points for (a); for (b) name each factor and say how it affects the channel.