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