Identify and discuss the five main functions in marketing channels.

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A marketing channel is made up of people and institutions that move the product from manufacturers to consumers. The functions of a marketing channel are as follows:

  1. Source of Information: The brokers distribute information about the product to the consumers. They tell the customer how the product will help them....

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A marketing channel is made up of people and institutions that move the product from manufacturers to consumers. The functions of a marketing channel are as follows:

  1. Source of Information: The brokers distribute information about the product to the consumers. They tell the customer how the product will help them. The intermediaries also provide information to manufacturers. They tell them what customers think should be improved.
  2. Promotion: The intermediaries entice customers to buy their products through various discount offers and loyalty rewards. Another method that agents use to promote products is by a special display. The item can be on the first page of the broker’s website.
  3. Keep the Goods: The intermediaries store the goods before distributing them to the final consumer. During this period, they will sort the goods according to quality, quantity, and other specifications.
  4. Price Negotiations: The marketing channels negotiate purchase prices from the manufacturers. They have to consider their profits and how much the consumer is willing to pay for the goods. The brokers also negotiate with the customer by convincing them to buy their products.
  5. Risk Takers: Brokers in the marketing channel take the risk of purchasing stock from a manufacturer, hoping that customers will buy all of it. In reality, some goods may go bad or break during transportation. When that happens, the broker shoulders the financial burden.
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