Intermediary

Examples of Intermediary in the following topics:

• Functions of Intermediaries

  • Intermediaries, also known as distribution intermediaries, marketing intermediaries, or middlemen, are an extremely crucial element of a company's product distribution channel.
  • Without intermediaries, it would be close to impossible for the business to function at all.
  • For example, merchants are intermediaries that buy and resell products.
  • A firm can have any number of intermediaries in its channels.
  • A "level zero" channel has no intermediaries at all, which is typical of direct marketing.

• Competitive Priorities in Marketing Channels

  • The Impact the attitudes of channel intermediaries have on the product
  • For example, merchants are intermediaries that buy and resell products.
  • Agents and brokers are intermediaries that act on behalf of the producer but do not take title to the products.
  • Selective distribution - producers rely on a few intermediaries to carry their product.
  • Exclusive distribution - producers select only very few intermediaries.

• Distribution Intensity

  • The manufacturer attempts to get as many intermediaries of a particular type as possible to carry the product.
  • As a drawback, it can be extremely difficult to stimulate and control the large number of intermediaries.
  • In selective distribution, the producer relies on a few intermediaries to carry their product.
  • In exclusive distribution,the producer selects only very few intermediaries.
  • Success of the product is dependent upon the ability of a single intermediary.

• Selecting Marketing Channels

  • In intensive distribution (such as candy) the manufacturer attempts to get as many intermediaries of a particular type as possible to carry the product
  • The two-level channel (producer to consumer) is a direct channel and is possible only if the producer or customer are willing to perform several of the tasks performed by intermediaries.
  • There are several types of intermediaries that operate in a particular channel system.
  • The objective is to gather enough information to have a general understanding of the distribution tasks these intermediaries perform.
  • Other possible performance criteria include maintenance of adequate inventory, selling capabilities, attitudes of channel intermediaries toward the product, competition from other intermediaries and from other product lines carried by the manufacturer's own channel members.

• Channel Member Characteristics

  • The company must decide whether to sell its products through an intermediary (such as a chain store) or attempt to sell its products directly to the customer.
  • Using an intermediary may sometimes lower transaction costs, as much of the burden is shifted from the producer to the intermediary.
  • Selective distribution means that the producer relies on a few intermediaries to carry their product.
  • Exclusive distribution means that the producer selects only very few intermediaries, such as is often the case with luxury goods.

• Types of Marketing Channels

  • There are basically 4 types of marketing channels: direct selling; selling through intermediaries; dual distribution; and reverse channels.
  • A marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer is called an indirect channel.
  • Each one flows from producer to intermediary (if there is one) to consumer.
  • This one goes in the reverse direction and may go -- from consumer to intermediary to beneficiary.

• Product, Placement, Promotion, and Price

  • Product distribution (or placement) is the process of making a product or service accessible for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
  • Selective distribution means that the producer relies on a few intermediaries to carry their product.
  • Exclusive distribution means that the producer selects only very few intermediaries.

• The Dynamic Environment

  • The micro-environment includes the company itself, its suppliers, marketing intermediaries, customer markets, and competitors.
  • Marketing intermediaries refer to the people that help the company promote, sell, and distribute its products to final buyers.

• What Are Markets

  • Finally, a market may be somewhere other than a geographical region, such as a catalog or ad that allows you to place an order without a marketing intermediary.
  • All intermediaries that buy finished or semi-finished products and resell them for profit are part of the reseller market.

• Streamlining Distribution

  • Streamlining distribution involves the planning and efficient use of supply chain resources and may involve working with intermediaries.