Answer to Question 1
The institutions involved in performing the eight marketing functions are usually broken into two categories: primary and facilitating. Facilitating marketing institutions are those that do not actually take title but assist in the marketing process by specializing in the performance of certain functions. Many institutions facilitate the performance of the marketing functions. Institutions that facilitate the buying and selling functions in the supply chain include agents and brokers. Marketing communications agencies facilitate the selling process by designing effective advertisements and advising management on where and when to place these advertisements. Institutions that facilitate the transportation function are motor, rail, and air carriers and pipeline and shipping companies. The major facilitating institution involved in storage is the public warehouse, which stores goods for safekeeping in return for a fee. A variety of facilitating institutions also help provide information throughout the supply chain. The role of computer specialists, referred to as channel integrators, in setting up computer channels for transmitting information is evident throughout the business world. Other facilitating institutions aid in financing, such as commercial banks, merchant banks, factors, stock and commodity exchanges, and venture-capital firms. Insurance firms can assume some of the risks in the channel, insuring inventories, buildings, trucks, equipment and fixtures, and other assets for the retailer and other primary marketing institutions.
Answer to Question 2
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