Which of the following are two reasons why an intermediary might be better suited to lead a distribution channel than a producer?

• A. Intermediaries often have greater expertise in marketing and access to established distribution networks.
• B. Intermediaries usually have less information about consumer preferences than producers.
• C. Producers are generally more efficient at handling logistics and inventory management.
• D. Producers typically have more control over pricing and product design.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the role of intermediaries in a distribution channel. Intermediaries act as middlemen between producers and consumers, facilitating the movement of goods and services.
2. Step 2: Identify the key advantages intermediaries have over producers. These often include specialized expertise in marketing and established access to distribution networks, which can improve product reach and sales efficiency.
3. Step 3: Recognize that producers typically have more control over product design and pricing, but may lack the logistical capabilities and market knowledge that intermediaries possess.
4. Step 4: Evaluate the given options by comparing the typical strengths of intermediaries versus producers. For example, intermediaries usually have better marketing skills and distribution access, while producers have more control over product features.
5. Step 5: Conclude that the two reasons why an intermediary might be better suited to lead a distribution channel are their greater expertise in marketing and their access to established distribution networks.