Theory question 102
Distribution(a) Distinguish Between: (i) primary product and secondary product; (ii) market facilitator and market union. (b) List four market facilitators and state one function of each in aiding the activities of marketers.
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(a)(i) A primary product is in its natural, unprocessed state (e.g. cassava, crude oil); a secondary product has been processed from primary products (e.g. garri, petrol).
(a)(ii) A market facilitator is a firm that helps marketing take place without buying or selling the goods (e.g. bank, transporter, insurer); a market union is an association of traders selling the same product in a market, formed to protect their interests.
(b) Any four, with a function each: banks (give loans and handle payments); insurance companies (cover goods against risk); transport companies (move goods); warehouses (store goods); advertising agencies (promote products); marketing research firms (provide information); communication firms (link buyers and sellers).
Give each point as a full sentence, with an example where possible.