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

Question

Quizplus · Accepted Answer

Marketing intermediaries not only add costs to products, they also create value by storing, transporting, selling, and performing other marketing functions. Moreover, the reason intermediaries have survived is that they often perform these functions more efficiently than producers or consumers could perform them for themselves. Thus, eliminating marketing intermediaries could raise overall distribution costs rather than reduce them.

Marketing Intermediaries Must Charge a Price for the Functions They