As defined above, the source through which all goods and services are sold to the ultimate consumer is known as marketing intermediary. The marketing intermediary can be the agent of the company or it can be any middleman that might help in distributing the goods and services. This distribution process is known as distribution channel, the size of which depends upon the number of involved marketing intermediaries through which the goods or services will reach the intended buyer.
Agents and Brokers – Agents and brokers are those marketing intermediaries that help in selling the products and services on the basis of commission. When the product to be sold is real estate, they themselves act as clients. Agents act as a marketing intermediary on a permanent basis between buyers and sellers, while brokers act as a marketing intermediary on a temporary basis. Both of them work on a commission basis.
Merchant Wholesalers and Resellers – Merchant wholesalers and resellers are those marketing intermediaries that buy and sell goods and services. They buy products at the wholesale rates and sell the same products at retailer’s rates. As every business has the main objective of earning profit, this business earns profit by selling the products at a higher rate than their purchase costs.
Distributors and Functional Wholesalers – The distributors and the functional wholesalers are also marketing intermediaries that do not buy products from the producers. But they are the ones that increase the sales between the manufacturer and retailers. They are also paid commission as the agents or brokers. They can even get paid from the manufacturer in the form of fees.
Traditional and Online Retailers – A traditional retailer is the individual that does not manufacture the goods, but they act as another intermediary between the manufacturer and the ultimate buyer. Retailers provide a variety of goods to the customers as they are the ones who are in direct communication with the manufacturer and the customer and they know the needs of the customers. Online retailers are also one form of intermediary. The retail selling that takes place outside traditional physical locations is known as online retailing. There are many different forms of online retailing. This does not occur at a physical retail space. There are three types of non-store retailing, which are direct selling, distance selling and online selling.
Objectives of Marketing Intermediary
Objectives of Marketing Intermediary
Making the Product Available – The main objective of the marketing intermediary is to make sure that the goods and services are available to the customers. The marketing intermediary also ensures that the product is available in the best retail store and the correct market. The correct marketplace must be ensured for the goods to be sold to the consumers.
Enhancing the Prospect of Sales – The other main objective of the marketing intermediary is to enhance the prospect of sales. All the factors for each product or type of retail store will be reflected in the type of marketing intermediary chosen.
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