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)
Role of marketing intermediaries
Walmart and Target
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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.
While marketing intermediaries may seem non-essential at first glance, their activities are crucial for enhancing efficiency and effectiveness in the marketing process. They facilitate the distribution of products, bridge the gap between producers and consumers, and provide valuable market insights. By handling logistics, inventory management, and customer relations, intermediaries enable manufacturers to focus on production and innovation. Thus, their role is integral to a streamlined and successful marketing strategy.
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.
Intermediaries provide logistic support that increases convenience to both the producer and the consumer by offering effective delivery and pre- and post-purchase customer service as well as facilitating manufacturer services, making them indispensable to most mid- and small-scale producers. Marketing channels make possible the flow of goods from a producer, through intermediaries, to a buyer.