Which statement best describes the role of a broker in marketing channels?

Which statement best describes the role of a broker in marketing channels?

• A. An independent sales representative who contracts to represent manufacturers to sell and market their products to foodservice operators and wholesalers
• B. A company employee who handles only large retailer orders
• C. A consultant who provides pricing analysis
• D. A distributor who takes ownership of goods

Answer: (A)

Brokers act as independent sales representatives who contract with manufacturers to promote and sell their products to foodservice operators and wholesalers. They don’t own the goods and aren’t employees of the manufacturer; instead, they use their market knowledge and relationships to extend the manufacturer’s reach, help introduce products to buyers, and close sales for a commission. This distinguishes them from distributors, who purchase and take title to the goods, and from internal staff or pricing consultants who handle orders or pricing analysis rather than representing manufacturers in sales negotiations.

Brokers act as independent sales representatives who contract with manufacturers to promote and sell their products to foodservice operators and wholesalers. They don’t own the goods and aren’t employees of the manufacturer; instead, they use their market knowledge and relationships to extend the manufacturer’s reach, help introduce products to buyers, and close sales for a commission. This distinguishes them from distributors, who purchase and take title to the goods, and from internal staff or pricing consultants who handle orders or pricing analysis rather than representing manufacturers in sales negotiations.