Global Competition Has Never Been Greater.

Abstract

This research paper entails the importance of intermediaries, their role in value addition to the product and principals used for the choosing of intermediaries. This research papers gives the details on the types of intermediaries, their function, role and importance, how values are added by them, how they affect businesses and principals that are used for the selection of intermediaries.

Table of Content

Abstracti

Introduction2

Discussion2

Types of Intermediaries3

Agents3

Wholesalers3

Distributors3

Retailers4

Functions of Intermediaries4

How Intermediaries Add Value5

Affect on Business by Intermediaries6

Effect on Price6

Packaging and Promotion7

Sales and Revenue7

Principals for Use of Intermediaries8

Analyzing Consumer Needs8

Setting Channel Objectives9

Identification of Alternatives9

Alternatives Evaluation10

Conclusion11

References12

Global Competition Has Never Been Greater

Introduction

Marketing generates valuable exchange amongst the consumers and producers. The foundation and sole propose of the business is to satisfy customer needs, to survive in the competitive economy. Satisfying customer needs assists business to sustain, flourish and nurture. Every customer have different needs, and different means to satisfy its need, businesses need to understand and address needs of customer , which have recently become a very difficult task. The traditional marketing mix model of 4Ps was visualized as the only means to cater the demands and needs of customer; however, Drucker (1974) envisaged that to business in twenty-first century, the changes are to be brought not only in methods of production and consumption, but changes are also vital in distribution channels (Jobber, 2001). Traditionally, goods and services were sold directly to the consumer, which in present day's tasks such as distribution activities, which includes storage and transportation, marketing activities like promotion, selling and pricing are performed by external intermediaries.

Discussion

Marketing intermediaries are also referred as distribution intermediaries or middlemen, who are integral part of distribution channel of the product. Intermediaries can be a business or individuals, who facilitate the sales process by making product available from manufacturer to the end users.

Types of Intermediaries

There are four types of intermediaries, which includes agents, wholesalers, distributors and retailers (http://smallbusiness.chron.com).

Agents

Agents are individuals or company, who act as intermediaries performing function of acting as the primary selling arm of the producer, and work as a representative of the producer to the end user. They earn profits in form of fees paid for the services or commissions (http://smallbusiness.chron.com).

Wholesalers

A wholesaler, in contrast to agents owns the products they sell. They are firms that re independently owned, which takes title for the merchandise they handle. Wholesales purchases they products from the manufacturers, and store in warehouse till they can resell it again. They usually resell the purchased products to retailers, for profits (http://smallbusiness.chron.com).

Distributors

Distributors perform similar function like wholesaler, with the slightest difference. Wholesaler purchases the products in bulk form different manufacture, where some of the products are of competitors, like Pepsi and Coke; however, distributors carries the product of only complementary product lines, like either Coke or Pepsi products. Distributors like wholesalers, takes title of the products and store till they are resold. They retain close relations with customers and suppliers (http://smallbusiness.chron.com).

Retailers

A retailer purchases the products from other intermediaries in the distribution channel, rather than ...