Marketing Intermediaries And The Various Types

Marketing Intermediaries And The Various Types

Marketing intermediaries may seem a surplus in the distribution chain and this may tempt the
manufacturer to want to cut them off and reach the consumer directly in a bid to maximise
profits. But this may have a ricochet effect that may go to the contrary of the manufactures
expectations. The intermediaries do not just take a piece of the cake with each transaction but
on the converse do go a long way in aiding the logistical aspect of the business. With
intermediaries in its chain a manufacturer is able to specialize and concentrate on production
instead of straining its resources on individual customer concerns which would be very
expensive especially for a large firm (Principles of Marketing
Philip Kotler and Gary Armstrong, 2016).  The four types of marketing intermediaries
include wholesalers, agents and brokers, distributors and retailers.

Whsolesalers

Wholesalers are merchants who usually obtain goods often in bulk at prices below the retail
value and in turn redistribute the goods to retail outlets that can later mark up the prices and
sell to the consumer in retail quantities and prices. Wholesale establishments do not only
serve retail establishments but also could sell goods to other wholesale merchants and large
organisations. They are of 2 types full-service and limited-service wholesalers. Full-service
Wholesalers are preferred to limited service wholesalers when the amounts of goods involved
are substantial as their scope of service is broad which may include operating warehouses,
having a big stock inventory supply of credit lines to salespersons and clients as well as
delivery of goods to clients Limited service merchant wholesalers offer a less number of
services to their customers and exist more on the bid to reduce the cost of service.

Agents and Brokers

Agents and brokers unlike other marketing intermediaries never take ownership of a product
but are also an important link between a business and its intended clientele. They are
especially a common component in travel and real estate industries (Principles of Marketing
Philip Kotler and Gary Armstrong, 2016). Agents normally work as intermediaries on a
permanent basis while brokers are on a temporary basis. They are both usually paid in
commission as per agreeable terms.

Distributors

Distributors are commonly referred to as functional wholesalers. They may at times work like
merchant wholesalers or like agents and brokers or a hybrid blend the two. They are essential
in geographical dissemination of the products and