Marketing intermediaries work to promote the product through marketing channels, which builds customer relationships and ultimately increases brand loyalty and awareness. The proper development of a marketing plan, promotion and packaging ensures repeat customers and can affect the success or failure of a product. Because of their large part in distributing and promoting the product, market intermediaries have significant influence on sales and customer demand.
With so much riding on marketing and distribution, market intermediary firms have just as much vested interest in the success of a product as the manufacturer. Therefore, they work hard to ensure the product and the company have a successful end result. Casey Anderson is a part-time writer and full-time marketer who has been published on websites such as Opposing Views and Salon.
She has also contributed articles to local Detroit Magazines, Strut and Orbit. A Wayne State University Master of Business Administration graduate, Nation began her writing career in and has extensive experience in business and research writing. Skip to main content.
Marketing Intermediaries Marketing intermediaries, also known as distribution intermediaries, are firms hired by the product manufacturer to promote, sell and distribute the products to the final consumer.
Middlemen must continuously be motivated and stimulated to perform at the highest level. In order to gain such a high level of performance, manufacturers need some sort of leverage.
Researchers have distinguished five bases of power: As new institutions emerge or products enter different life-cycle phases, distribution channels change and evolve. With these types of changes, no matter how well the channel is designed and managed, conflict is inevitable.
Often this conflict develops because the interests of the independent businesses do not coincide. For example, franchisers, because they receive a percentage of sales, typically want their franchisees to maximize sales, while the franchisees want to maximize their profits, not sales. The conflict that arises may be vertical, horizontal, or multichannel in nature.
When the Ford Motor Company comes into conflict with its dealers, this is a vertical channel conflict. Horizontal channel conflict arises when a franchisee in a neighbouring town feels a fellow franchisee has infringed on its territory.
Finally, multichannel conflict occurs when a manufacturer has established two or more channels that compete against each other in selling to the same market. For example, a major tire manufacturer may begin selling its tires through mass merchandisers, much to the dismay of its independent tire dealers. Wholesaling includes all activities required to sell goods or services to other firms, either for resale or for business use, usually in bulk quantities and at lower-than-retail prices.
Wholesalers, also called distributors, are independent merchants operating any number of wholesale establishments. Wholesalers are typically classified into one of three groups: Merchant wholesalers, also known as jobbers, distributors, or supply houses, are independently owned and operated organizations that acquire title ownership of the goods that they handle. There are two types of merchant wholesalers: Full-service wholesalers usually handle larger sales volumes; they may perform a broad range of services for their customers, such as stocking inventories, operating warehouses, supplying credit , employing salespeople to assist customers, and delivering goods to customers.
General-line wholesalers carry a wide variety of merchandise, such as groceries; specialty wholesalers, on the other hand, deal with a narrow line of goods, such as coffee and tea or seafood. Limited-service wholesalers, who offer fewer services to their customers and suppliers, emerged in order to reduce the costs of service. There are several types of limited-service wholesalers.
Cash-and-carry wholesalers usually handle a limited line of fast-moving merchandise, selling to smaller retailers on a cash-only basis and not delivering goods. Truck wholesalers or jobbers sell and deliver directly from their vehicles, often for cash.
They carry a limited line of semiperishables such as milk, bread, and snack foods. Drop shippers do not carry inventory or handle the merchandise. Operating primarily in bulk industries such as lumber, coal, and heavy equipment, they take orders but have manufacturers ship merchandise directly to final consumers. Rack jobbers, who handle nonfood lines such as housewares or personal goods, primarily serve drug and grocery retailers. Rack jobbers typically perform such functions as delivery, shelving, inventory stacking, and financing.
In less-developed countries , wholesalers are often the sole or primary means of trade; they are the main elements in the distribution systems of many countries in Latin America , East Asia, and Africa. In such countries the business activities of wholesalers may expand to include manufacturing and retailing , or they may branch out into nondistributive ventures such as real estate, finance , or transportation.
Until the late s, Japan was dominated by wholesaling. Even relatively large manufacturers and retailers relied principally on wholesalers as their intermediaries. However, in the late 20th century, Japanese wholesalers declined in importance.
Even in the most highly industrialized countries, however, wholesalers remain essential to the operations of significant numbers of small retailers. We welcome suggested improvements to any of our articles. You can make it easier for us to review and, hopefully, publish your contribution by keeping a few points in mind. Your contribution may be further edited by our staff, and its publication is subject to our final approval.
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Full Answer Marketing intermediaries can come in the form of wholesalers, retailers, brokers, agents, financial intermediaries or distributors. Learn more about Economics. What Is Collaborative Commerce c-Commerce? Collaborative commerce is defined as creating more efficient distribution and supply channels as a way to maximize production in the world economy and util You May Also Like Q: What Are the Five Managerial Functions?
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Individual or firm (such as an agent, distributor, wholesaler, retailer) that links producers to other intermediaries or the ultimate buyer. Marketing intermediaries help a firm to promote, sell, and make-available a good or service through contractual arrangements or purchase and resale of the item.
Marketing intermediaries: the distribution channel Many producers do not sell products or services directly to consumers and instead use marketing intermediaries to execute an assortment of necessary functions to get the product to the final user.
These intermediaries typically work with many businesses and cover a specific geographic area or market sector, performing several functions, including selling, delivery, extending credit and maintaining inventory. Sep 08, · What are 'marketing intermediaries? The marketing intermediaries refers to the firm or individual thatact as a link between the produces and the ultimate buyers. Thereare four types of the marketing intermediari es namely the agents,wholesalers, distributors and retailers.
PrimaryMarkets is the platform for delivering liquidity to Unlisted Securities and Investments. Intermediaries are able to connect interested Buyers and Sellers with one another for such off-market transactions. Marketing intermediaries, also known as distribution intermediaries, are firms hired by the product manufacturer to promote, sell and distribute the products to the final consumer. Basic types of marketing intermediaries include agents, marketing agencies, wholesalers and retailers and distribution companies.