types of distribution intermediary
Introduction There is a variety of intermediaries that may get involved before a product gets from the original producer to the final user. These are described briefly below: Retailers Retailers operate outlets that trade directly with household customers. Retailers can be classified in several ways: • Type of goods being sold( e.g. clothes, grocery, furniture)
• Type of service (e.g. self-service, counter-service)
• Size (e.g. corner shop; superstore)
• Ownership (e.g. privately-owned independent; public-quoted retail group
• Location (e.g. rural, city-centre, out-of-town)
• Brand (e.g. nationwide retail brands; local one-shop name) Wholesalers Wholesalers stock a range of products from several producers. The role of the wholesaler is to sell onto retailers. Wholesalers usually specialise in particular products. Distributors and dealers Distributors or dealers have a similar role to wholesalers - that of taking products from producers and selling them on. However, they often sell onto the end customer rather than a retailer. They also usually have a much narrower product range. Distributors and dealers are often involved in providing after-sales service. Franchises Franchises are independent businesses that operate a branded product (usually a service) in exchange for a licence fee and a share of sales. Agents Agents sell the products and services of producers in return for a commission (a percentage of the sales revenues)
The marketing intermediaries refers to the firm or individual that act as a link between the produces and the ultimate buyers. There are four types of the marketing intermediaries namely the agents, wholesalers, distributors and retailers.
Role of marketing intermediaries
me
Walmart and Target
Retailers
4 types of Marketing IntermedieriesResellerPhysical Distribution FirmMarketing Service AgenciesFinancial Intermediries
logistical functions
These are the intermediaries used while marketing industrial goods to customers/companies.There may be zero/one/two/three level marketing channels in accordance with how many intermediaries are working in between the manufacturers and customers.
One of the most basic values provided by intermediaries is the optimization of the number of exchange relationships needed to complete transactions.
Marketing was with trade
Since they understand buyers' and sellers' needs, intermediaries are well positioned to reduce the uncertainty of each. They do this by adjusting what is available with what is needed.
Marketing intermediaries play a crucial role in connecting producers to consumers. They help in distributing products and ensuring that they reach the target market efficiently. Intermediaries also provide services such as promotion, market research, and market feedback, thereby aiding in market expansion and customer satisfaction. Overall, marketing intermediaries are vital in bridging the gap between producers and consumers, and in facilitating the smooth flow of goods and services in the marketplace.
But as the number of intermediaries approaches the number of organizations in the channel, the law of diminishing returns kicks in. At that point, additional intermediaries add little new value within the channel.