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20 - Types & Functions of Intermediaries - Ishita

The document discusses the types, number, and responsibilities of intermediaries in distribution channels. It identifies wholesalers, retailers, agents, franchises, and internet intermediaries as common types and describes strategies for selecting an exclusive, selective, or intensive number of intermediaries. The document also outlines some of the terms and mutual responsibilities that should be defined between producers and intermediaries.

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Vineet Kumar
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52 views

20 - Types & Functions of Intermediaries - Ishita

The document discusses the types, number, and responsibilities of intermediaries in distribution channels. It identifies wholesalers, retailers, agents, franchises, and internet intermediaries as common types and describes strategies for selecting an exclusive, selective, or intensive number of intermediaries. The document also outlines some of the terms and mutual responsibilities that should be defined between producers and intermediaries.

Uploaded by

Vineet Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Types & Functions of

Intermediaries

By:
Ishita Dhingra
(30)
Identifying Channel Alternatives

1.Types of 3. Terms &


available 2. Number of Responsibilities
Intermediaries Intermediaries of
Intermediaries
Types of Intermediaries
 Wholesalers:
 Buy from producers and resell to retailers

 Break down 'bulk' into smaller packages for resale

 Stock a range of products- several producers

 Take ownership or 'title' to goods

 Provide storage facilities

 Reduce the physical contact cost


Types of Intermediaries
 Retailers:
 Stronger personal relationship with the consumer

 Hold several other brands and products

 Offer credit to the customer

 Products and services are promoted &


merchandised by the retailer

 Set final selling price to the product

 Strong 'brand' themselves


Types of Intermediaries
 Agents:

 International markets

 Take an order for a producer and will take a


commission

 Don’t take title to the goods

 Can be very expensive to train

 Physical distances

 Difficult to control
Types of Intermediaries
 Franchise:
 Independent businesses
 Operate a branded product (usually a service)
 In exchange for a license fee and a share of
sales.

 Internet:
 Geographically disperse market
 Products reach a wider audience
 Use e-commerce technology
 paradigm shift in commerce and consumption
Number of Intermediaries
 Strategies available :

1.Exclusive
2. Selective 3. Intensive
Distribution
Distribution Distribution
Exclusive Distribution
 Limiting the no. of intermediaries

 Exclusive dealing agreements

 Dedicated selling

 Greater partnership between seller & reseller

 Used in:
• Distribution of new automobile
• Women apparel brands
Selective Distribution
 No. of intermediaries > few

 Used by established companies

 More control, less cost than intensive

 Enables producer to gain adequate market


coverage

 Eg:
 Nike
Intensive Distribution
 Product at as many outlets

 Increase coverage & sales

 Helps in short term performance

 Used by where great deal of location convenience required


by consumer

 Used in:
 Tobacco products
 Soap
 Snack foods
 Gum
Terms and Responsibilities
 Opportunity to be profitable

 Respect ,rights & role to be defined

 Elements of trade relation mix:


• Price policy
• Conditions of sale
• Distributors territorial rights
• Mutual services and responsibilities

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