Hartselle Home Products, Inc., manufactures a variety of inexpensive household gadgets. The company has decided to cut costs by eliminating all of the marketing intermediaries who help distribute its products. Hartselle will be able to reduce its total marketing costs by eliminating the marketing functions these intermediaries perform.

Question

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Eliminating marketing intermediaries may save on distribution costs, but it is likely to lead to decreased sales and marketing support, which could ultimately harm the company's overall profitability. Marketing intermediaries, such as retailers and wholesalers, can help expand a company's reach and promote its products to a wider audience, ultimately driving sales and revenue.