Accounting technicians scheme west africa
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- C.9.1 Functions of intermediaries
| C.9 Place (Distribution) Distribution involves the movement of goods from the producer to the customer at the right time and at the appropriate place. The producer cannot survive without some form of distribution because the product will be a liability and waste of resources. Distribution could be broadly classified into direct and indirect distribution. There is direct distribution if the producer supplies the product directly to the customer without the use of intermediaries (or middlemen. Indirect distribution involves the use of intermediaries to make the product available to the customer. C.9.1 Functions of intermediaries Intermediaries perform the under listed functions vii) They gather goods from various producers and make these available to customers. Throughout the country the agricultural sector in Ghana is characterised by a large number of small-scale farmers working in hundreds of thousands of locations scattered throughout every corner of the country. Without middlemen who visit these locations to buy the farm produce it will be impossible for consumers to have access to these farm produce in the market. viii) They help to match the product with the customer’s requirements. They do this through assembling and packaging. Market women match products like sugar, cigarettes, pens, fish, soap and edible oil and the like with the requirements of customers by breaking them into the assortment wanted by the consumer. ix) They transport and physically distribute goods throughout the country. They manage to do this in spite of the poor transport and communication network in the country. x) They finance the activities of producers by providing them with ready market for their products or at times pre-financing production. xi) They gather a lot of information that the marketing research section of an organisation may find valuable for product development purposes. xii) They help to spread information about products through promotional activities. |