MKTG 3340 Exam 3 Questions and Answers 100% Correct!

How do intermediaries create value? - ANSWER-Transactional Function: buying/selling/risk taking Logistical Function: storing/assorting (mix of products)/sorting(lots of a single product)/bulk breaking(one large item broken down)/transporting Facilitating: financing/grading/marketing info and research We use intermediaries to: - ANSWER-make a product or service available by consumers or industrial use be more efficient: reduce # of contacts allow firms to focus on core competencies reduce financial risk and investment Different types of intermediaries - ANSWER-Merchant Wholesalers Agents and Brokers Middlemen (intermediary between manufacturer and end-user) Retailer (sells to consumers) Distributor (variety of distribution functions) Dealer (can be a distributor, wholesaler, retailer, etc) Merchant Wholesalers - ANSWER-Independently owned firms take title to own the merchandise -Full service: general or specialty -limited service: Rack jobbers (stock racks), cash and carry wholesalers (sell to those who call, provide transportation and pay cash), drop shippers (desk jobbers- solicit orders and ship directly w/o handling stock), or truck jobbers (have warehouse with stock, use trucks to distribute) Agents and brokers - ANSWER-Don't own merchandise and perform fewer channel functions; make $ from commission or fees rather than sales -manufacturer's agent: carry noncompetitive, complementary products in an exclusive territory -selling agent: represent a single producer and are responsible for entire marketing function (drug reps) -broker: independent with the function of bringing buyers and sellers together to make sale (real estate) Multi-channel marketing - ANSWER-Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining and building relations with consumers