Theory question 101
Distribution(a) State five functions of a wholesaler.
(b) Outline five factors that would influence the choice of a distribution channel by a producer.
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(a) Any five: buys in bulk and sells in small lots to retailers (breaking bulk); stores goods; finances producers by prompt payment; gives credit to retailers; bears risks; transports goods to retailers; gives market information to producers and advice to retailers; grades and packs goods; promotes products.
(b) Any five: nature of the product (perishable, bulky, technical); size and location of the market; producer's financial resources; degree of control desired; unit value of the product; availability of suitable middlemen; channels used by competitors; government policies; size of orders.
Give five separate points in each part.