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Rationale of having middlemen in the channels of distribution/Importance of middlemen in the channels of distribution

      

Rationale of having middlemen in the channels of distribution/Importance of middlemen in the channels of distribution

  

Answers


Faith
i) Breaking the bulk- some middlemen like the wholesalers, retailers or agents buys
in large quantity from the producers then sells to the consumers in small quantity
ii) They relieve the producer the function of storage. Wholesalers and large scale
retailers have large stores where they store the goods, a function which could have
been carried out by the producer
iii) Relieves the producer of some risks related to goods stored in the producers
warehouses
iv) Demand stimulation- large scale retailers such as supermarkets carry out
advertisements in attempt to increase demand for the goods in their stores. This
helps the producer to push the goods until they are bought by the consumers
v) Middlemen collect a lot of market information concerning consumers’ wants and
desires. This information is important to the manufacturers when designing the
products or the promotion programmes
Titany answered the question on November 12, 2021 at 08:31


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