Marketing managers at Focal Point Cameras are looking for ways to cut costs as the company is facing intense competitive pressure. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Focal Point does this, it is likely to find that
A) most of the marketing functions performed by marketing intermediaries are helpful, but they aren't really necessary.
B) as the producer of the products, it will be able to perform the same functions more efficiently.
C) it will be unable to perform the functions as efficiently as they were performed by the marketing intermediaries.
D) telemarketing will become the only viable means of distributing its products.

Question

Quizplus · Accepted Answer

Marketing intermediaries can be eliminated, but their functions still must be performed. Manufacturers and final customers may be able to perform these functions without intermediaries. However, because intermediaries specialize in the marketing functions they perform, they often can provide them more efficiently and effectively than producers or consumers, thus creating value. The elimination of marketing intermediaries will not only eliminate the costs they add, it will also eliminate the value they create.

Marketing Managers at Focal Point Cameras Are Looking for Ways