Assessment

Answer the following questions concisely.

1. Why is it necessary to reach the target market?

a. Choosing a target market is important because it enables the firm to direct its resources
to those customers with high potential for sales growth, interest in the product and
loyalty to the brand.
2. Explain mega selling.
a. What is Megamarketing? Megamarketing is the expansion of marketing beyond the
buyer to third parties that influence (or block) transactions. These third parties include
labor unions, cultural institutions, reform groups, banks, and—most significantly—
governments
3. How do retailers help the manufacturers? Explain and give examples.
a. Retailers use brands as resources to increase customer demand and benefit from
complementary resources such as manufacturer brand advertising. They can also obtain
market knowledge such as brand and market information from manufacturers.
4. Describe the vertical marketing system.
a. A vertical marketing system is the type of cooperation between the members of a
distribution channel. It includes a producer, a wholesaler, and a retailer collaborating to
deliver necessary products to their customers and aims at achieving better efficiency
and economies of scale.
5. How are the agent and the broker considered independent from each other?
a. There are two main differences between insurance agents and brokers:
i. Agents represent insurers, while brokers represent consumers.
ii. Agents can complete insurance sales (bind coverage), while brokers cannot.
b. Agents also receive appointments to represent one or more insurance companies, but
brokers do not. An appointment is a contract an agent and insurer sign that outlines the
products the agent can sell and for what commission rates.
c. Brokers, on the other hand, can solicit price quotes from multiple insurers. When
consumers are ready to buy, they must obtain a binder directly from an insurance agent
or the insurance company.
d. Like any small business, insurance agents and brokers both need business insurance to
operate.
6. What is the use of marketing intermediaries? Explain and give at least one example.
a. Marketing intermediaries work to promote the product through marketing channels,
which builds customer relationships and ultimately increases brand loyalty and
awareness. The proper development of a marketing plan, promotion and packaging
ensures repeat customers and can affect the success or failure of a product.
b. Wholesalers
i. Wholesaling includes all activities required to sell goods or services to other
firms, either for resale or for business use, usually in bulk quantities and at
lower-than-retail prices. Wholesalers, also called distributors, are independent
merchants operating any number of wholesale establishments. Wholesalers are
typically classified into one of three groups: merchant wholesalers, brokers and
agents, and manufacturers’ and retailers’ branches and offices.