Observation

1. Distinguish between direct and indirect channels of distribution
   A direct channel of distribution involves the producer distributing his goods to the final consumers without using intermediaries, while indirect channel of distribution involves the producer distributing his goods to the final consumers using intermediaries.

   Response:

   
   (i)         Functions of the wholesaler to the producer

   • The wholesaler provides financial support to the producer through    advanced payments.
   • He assists in promoting the goods of the producer.
   • He offers market information to the producer.
   • He provides warehousing/storage facilities to the producer.
   • He assists in repackaging of the producer’s goods.
   • He buys goods in bulk from the producer.

    

                                       (ii)        Functions of the wholesaler to the retailer

   • The wholesaler breaks bulk for the retailer.
   • He offers credit facilities to the retailer.
   • He offers delivery services to the retailer.
   • He provides market information to the retailer.
   • He provides merchandising/point of sales display materials to   the retailer.
   • He offers storage facilities to the retailer.
   • He could give the retailer an opportunity to earn more profits from certain goods.

    

               Comments
   This question was well attempted by most of the candidates with good scores.
   Question  6