Chapter 10

Define middleman

Another name for intermediary

Define agent or broker

Any intermediary with legal authority to act on behalf of another cha

Define wholesaler

Any intermediary who sells to other intermediaries, usually to retailers

Define retailer

An intermediary who sells to consumers

Define distributor

A general term used to describe intermediaries who preform a variety of functions, including selling, maintaining inventories, extending credit, and others

Define dealer

General term that can mean the same as a distributor, a retailer, or a wholesaler

What are the 3 functions preformed by intermediaries for marketing channels?

Transactional Function

Logistical Function

Facilitating Function

Define transactional function

Buying: Purchasing products for resale

Selling: Contacting potential customers, promoting products, and seeking orders

Risk Taking: Assuming business risks in the ownership of inventory

Define logistical function

Selection: Putting together a selection of products from several different sources

Storing: Assembling and protecting products at a convenient location

Sorting: Purchasing in large quantities and dividing into smaller amounts

Transporting: Physically moving a product to customers

Define facilitating function

Financing: Extending credit to customer

Marketing information and research: Providing information to customers and suppliers, including competitive conditions and trends