1.

Explain how middlemen tend to benefit by advertisement.

Answer»
  • Contact with producers : 

The producers / marketeers advertise their products through different channels, so that middlemen can contact them for taking the product’s distribution agency. Similarly, wholesaler advertises the products, so that the retailers if interested, can contact them.  

  • Helps in sales : 

Advertisement mentions the name of dealer / agent, wholesaler, etc. of the product, so the customers can directly approach these middlemen. 

  • Lowers the risk : 

Due to constant advertising, describing the unique features and uses of products, repeated buying is encouraged. Adventure goods enjoy a ready market and little sales effort is required for selling them. Because of high sales turnover of advertised goods, dealer’s risk of unsold stock is reduced.


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