Question

Intermediaries perform three basic functions: a transactional function, a logistical function, and a facilitating function. (a) Briefly describe an activity that can be an example of a logistical function and (b) another example of an activity related to a facilitating function performed by intermediaries.

Answer 1

In marketing, the intermediaries has three functions which includes Transactional, Logical and Facilitating function. Among the functions, the transactional function helps to connect between the customers and market with the resources. it mainly adds value to the distribution channel. It either directly undertake the marketing or may acts as a connection between the manufacturer and the retailers. risk-taking, negotiating, etc. are examples of transactional function. On the other hand, logical function helps in the physical distribution of the goods. It helps to store the goods within the reach of the final customers. to sort out the channel of distribution, it aims to manufacture the goods on smaller portions rather than in the bulk amount. examples of logical functions are storing, sorting, etc. Facilitating function, is not under the logistic but it helps to support the marketing chain financially by investments, so that customers can still buy the products even when they don't have money with them available with the help of purchasing agreements. One of the examples of facilitating function is financing, marketing, etc.