Marketing intermediaries charge a price for the functions they perform.Thus,a sure-fire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.

Question

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While eliminating marketing intermediaries may reduce distribution costs, it can also lead to a loss of efficiency, effectiveness, and expertise in the distribution process. Marketing intermediaries perform valuable functions such as transportation, storage, promotion, and customer service. Removing them from the channel of distribution may result in higher costs and lower sales.

Marketing Intermediaries Charge a Price for the Functions They Perform