Exam 15: Distributing Products

Marketing intermediaries have survived because they have been able to perform marketing functions more efficiently and effectively than a manufacturer or consumer could perform these functions.

Mardelay Industries has discovered a defect in one of its products that may result in injury to users.The company believes it must quickly develop and implement a recall program.It is likely that Mardelay soon will be placing a great deal of emphasis on:

Bunny Babbett has just become an independent contractor selling the products of Tweethouse,a firm that makes elaborate (and expensive)birdhouses and bird feeders.Bunny was recruited to the firm by Sylvester Katt,who already sells the Tweethouse products as an independent contractor.Sylvester told Bunny that both he and she would receive a commission on every item she sold.He also pointed out that she could boost her income significantly by recruiting more people to sell the products,because she would receive a commission on her recruits' sales.The arrangement described by Sylvester suggests that Tweethouse is using: