Chapter 2 Takeaways

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.
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