Discussion – Marketing Intermediaries

Discussion – Marketing Intermediaries

Customers do not typically purchase products from the producers but from various intermediaries between them and the producer. Commonly, there are four types of intermediaries. They include wholesalers, retailers, distributors brokers, and agents. Notably, these intermediaries hold a crucial position and perform various functions. First, they perform a transactional role. Notably, the transactional function entails facilitating a sale between producers and customers, thus relieving producers of the stress of handling transactions between them and consumers. Further, marketing intermediaries purchase a substantial amount of products from producers and supply them to various customers, saving producers from incurring distribution costs and transactions (Kotler & Keller, 2016). Second, marketing intermediaries play a logistical function. Essentially, this function involves transporting commodities from production to places where customers can access them easily. The logistical function is crucial in ensuring that consumers get commodities quickly and easily. Finally, intermediaries play a facilitating function. They facilitate various activities. For instance, they facilitate revenue generation for producers and provide goods and services to customers.

Agents are essential intermediaries for large businesses because they play a significant role in marketing products and services on behalf of large producers under contractual obligations. They help large organizations outsource marketing functions. On the other hand, distributors are important marketing intermediaries for small businesses. Notably, this is so because distributors and small businesses have no contractual obligation that may not afford to maintain such obligations (Jenson et al., 2020). Further, additional marketing channel options can help serve the market through convenience and increased effectiveness. Notably, when additional channels are adopted, more customers can be served in their comfort and convenience. For instance, online channels help connect with customers in a short time. Additionally, customers can be served better through the addition of marketing channels because more feedback from customers can be obtained, and appropriate action will be taken.

 References

Jenson, I., Doyle, R., & Miles, M. P. (2020). An entrepreneurial marketing process perspective of the role of intermediaries in producing innovation outcomes. Journal of Business Research, 112, 291-299.

Kotler, P., & Keller, K. L. (2016). A framework for marketing management (6^th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.

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Discussion – Marketing Intermediaries

What are the various types and functions of marketing intermediaries? Which are more important for large businesses and why? Which are more important for the small business and why? How could additional marketing channel options in the simulation help you better serve your target market?