Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Sharp Focus carries out this plan, 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 perform important functions such as transportation, warehousing, promotion, and information sharing. Eliminating them from the channel of distribution may result in increased costs and inefficiencies for the company. While Sharp Focus may be able to perform some of these functions on its own, it is unlikely to be as efficient or effective as specialized intermediaries.

Sharp Focus Cameras Is Facing Intense Competitive Pressure