Teagan Torregrossa
Chapter 2 Take Away
In chapter 2 we we're able to learn 3 different ways to approach marketing. The first was
The Functional Approach, in this approach you have your exchange functions, physical
functions and facilitating functions. The exchange function consists of buying and selling
of needs and goods. The physical function is more for things like storage, transportation,
and processing. Lastly there is facilitating functions which is an easy smooth transition of
exchange and physical functions.
We learned about the marketing pipeline. This started with the raw products which also
act as the commodity market, allowing the "producer" one of two choices. They can keep
their raw products at home for consumption or they can turn around and sell to the
consumer. We then moved on to the farm gate which included processing, transportation,
storage, and finance. All these things help to add to the result of finished foods or value
added.
We also learned a lot about the middleman, we know that you can eliminate the
middleman, but you can't eliminate their functions! There are all kinds of middlemen, in
chapter 2 we went over 5 of them in detail. The thing with middlemen is you really have
no idea how many are involved in a process from start to finish. Just because you took
your truck to the dealership to get modifications doesn't mean that the dealership does all
the work. They more than likely sent the truck off to multiple middlemen to get various
jobs done before you've returned to get your truck back. So, from the moment we left the
truck to the moment we got back all we really know is that we left our truck with the
dealership. We have no clue how many middlemen worked on that truck before it made it
back to us.
A few of the middlemen that we covered were the Speculative Middlemen, these guys are
important because they move the money around and have the ability to be the jack of all
trades. They do anything from buy and sell to profiting on prices. We also covered the
middle of all middlemen, Processors and manufactures. They bring in all the benefits of
the products adding time, form, place, and possession utilities to what they are doing.
