The document discusses intermediaries, which are organizations that help facilitate transactions between manufacturers and consumers. It defines intermediaries and describes the main types, including wholesalers, retailers, distributors, and agents. It also outlines the key functions performed by intermediaries, such as buying and selling products, taking on business risks, sorting and storing inventory, transporting goods, financing transactions, and providing market research. Finally, it briefly mentions intermediary strategies without going into details.
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Intermediary
The document discusses intermediaries, which are organizations that help facilitate transactions between manufacturers and consumers. It defines intermediaries and describes the main types, including wholesalers, retailers, distributors, and agents. It also outlines the key functions performed by intermediaries, such as buying and selling products, taking on business risks, sorting and storing inventory, transporting goods, financing transactions, and providing market research. Finally, it briefly mentions intermediary strategies without going into details.
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INTERMEDIARY
MARK ALFIE DAVID, MBA
• What is Intermediary • Kinds of Intermediary • Functions Performed by Intermediary • Intermediary Strategies Intermediary • Also known as Marketing Channel or Distribution Channel • Is as set of independent organizations involved in the process of making product or service available to the consumer or business user. • Helps the company to promote, sell and distribute its products to final users. Kinds of Intermediary • A middleman plays the role of an intermediary in a distribution or transaction chain who facilitates interaction between the involved parties. • Any intermediary between manufacturer and end users markets. • Any intermediary with legal authority to act on behalf of the manufacturer. • Agents or broker specialize in negotiations of selling or buying transactions. • An intermediary who sells to other intermediaries: usually to retailers. • This is a company or individual that purchases great quantities of products from manufacturers, farmers, other producers, and vendors and sell them on to retailers (shops and stores) and businesses. • Wholesalers focus on B2B rather than B2C. • An intermediary who sells to consumers • is the one who sells goods/services directly to consumers for their personal or non-business use. • An imprecise term, usually used to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credits and so on. • An even more imprecise term, that can mean the same as distributor, retailer, wholesaler and so forth Functions Performed by the Intermediaries Transactional • Buying – Purchasing products for resale or as an agent for supply of a product • Selling – Contacting potential customers, promoting products, and soliciting orders • Risk Taking – Assuming business risks in the ownership of inventory that can become obsolete Logistical • Assorting – creating product assortments from several sources to serve customers • Storing – assembling and protecting products at a convenient location too offer better customer service • Sorting – purchasing in large quantities and breaking into smaller amounts desired by customers • Transporting – physically moving a products to customers Facilitating • Financing – Extending credit to customers • Grading – Inspecting, testing, or judging products, and assigning them quality grade • Marketing information and research – providing information to customers and suppliers including competitive conditions and trends. Intermediaries Strategies
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