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Questions and Answers
What is the primary role of merchant wholesalers?
What is the primary role of merchant wholesalers?
Which of the following best defines agents, brokers, and commission merchants?
Which of the following best defines agents, brokers, and commission merchants?
What is one of the distribution tasks performed by merchant wholesalers for manufacturers?
What is one of the distribution tasks performed by merchant wholesalers for manufacturers?
Which of the following is NOT a type of wholesaler mentioned?
Which of the following is NOT a type of wholesaler mentioned?
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How do merchant wholesalers help reduce costs for manufacturers?
How do merchant wholesalers help reduce costs for manufacturers?
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Which type of wholesaler is categorized as independent middlemen?
Which type of wholesaler is categorized as independent middlemen?
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What function does a manufacturer’s sales branch typically perform?
What function does a manufacturer’s sales branch typically perform?
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Which of the following is a facilitating agency that supports channel participants?
Which of the following is a facilitating agency that supports channel participants?
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What primary role do wholesalers serve in relation to manufacturers?
What primary role do wholesalers serve in relation to manufacturers?
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How do wholesalers break bulk for customers?
How do wholesalers break bulk for customers?
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What aspect of customer service do wholesalers typically provide?
What aspect of customer service do wholesalers typically provide?
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What is one benefit of wholesalers extending credit to customers?
What is one benefit of wholesalers extending credit to customers?
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What type of wholesalers specialize in market coverage and sales contact?
What type of wholesalers specialize in market coverage and sales contact?
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What is one of the major developments affecting retailers today?
What is one of the major developments affecting retailers today?
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Which task is NOT typically performed by retailers?
Which task is NOT typically performed by retailers?
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What type of assistance do wholesalers provide in terms of technical support?
What type of assistance do wholesalers provide in terms of technical support?
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What is the primary function of facilitating agencies in the distribution process?
What is the primary function of facilitating agencies in the distribution process?
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Which type of facilitating agency focuses primarily on the storage of goods?
Which type of facilitating agency focuses primarily on the storage of goods?
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What advantage does offering storage provide to suppliers?
What advantage does offering storage provide to suppliers?
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Which agency helps relieve manufacturers from the burden of processing orders?
Which agency helps relieve manufacturers from the burden of processing orders?
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How do insurance companies contribute to the role of a channel manager?
How do insurance companies contribute to the role of a channel manager?
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What role does a transportation agency play in the distribution process?
What role does a transportation agency play in the distribution process?
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Which of the following tasks is NOT typically performed by facilitating agencies?
Which of the following tasks is NOT typically performed by facilitating agencies?
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In what way can advertising agencies support channel members?
In what way can advertising agencies support channel members?
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Study Notes
Channel Participants Overview
- Channel participants include producers/manufacturers, intermediaries, and facilitating agencies.
- Producers/manufacturers create products.
- Intermediaries help distribute the products. These include wholesalers and retailers who sell products to end consumers.
Wholesalers
- Merchant wholesalers buy, take title to (own), store, and physically resell products in bulk to other businesses. They handle large quantities.
- Agent, brokers, and commission merchants act as independent middlemen, negotiating sales without owning the products. They are paid commissions.
- Manufacturer's sales branches and offices are owned by manufacturers and distribute their products.
Facilitating Agencies
- These agencies support the distribution process.
- Transportation firms move products.
- Storage firms store products.
- Advertising agencies promote products.
- Financial firms provide credit and financial assistance.
- Insurance firms manage risks (e.g. damage during transport, inclement weather).
- Marketing research firms provide market data.
Wholesaler Tasks for Manufacturers
- Inventory holding: Wholesalers take product titles, reducing manufacturer risk of holding excess inventory.
- Market coverage: Wholesalers provide wider market access for manufacturers.
- Order processing: Wholesalers handle small orders for multiple customers.
- Market information: Wholesalers relay information, including customer needs.
- Customer support: Wholesalers extend service for product exchange, return, and repair.
- Product availability & customer service: Wholesalers stock and deliver products to customers.
Retail Intermediaries
- Retailers sell goods to consumers.
- Retail developments: Increasing customer size, improved technology application, and superior marketing strategies.
Agent Wholesalers' Tasks
- Manufacturing agents (reps): focus on market coverage and sales.
- Selling agents: handle broader distribution tasks like market coverage, order processing, information availability, and customer service.
Distribution Tasks Performed By Retailers
- Offering manpower and physical facilities: Providing local access to products to customers.
- Providing personal selling: Direct customer interactions about products.
- Providing advertising and display: Promoting products to boost sales.
- Interpreting customer demand: Collect and convey consumer information to producers.
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Description
This quiz explores the roles of various channel participants including producers, intermediaries, and facilitating agencies. Understand the differences between wholesaler types and the functions of supporting agencies in the distribution process. Test your knowledge on how products are created, distributed, and promoted.
