Marketing Intermediaries Importance for Business: When a business manufactures a certain product then it can transfer the bulk of its product units to a large number of customers through marketing intermediaries. Distribution is an important function of any business which is not possible without the involvement of marketing intermediaries. Marketing Intermediaries consist of a chain of suppliers that help in effective delivery of products and services from the end of producers to the other end of consumers. It may include distributors, whole sellers and retailers, etc.
Importance of Marketing Intermediaries
The business can have the option to directly sell its products or services to the customers. But it is more profitable for a business to employ a suitable chain of marketing intermediaries in its distribution channels. Although apparently it seems disadvantageous to involve marketing intermediaries, because in this way a business gives some control to them regarding the decisions of to whom and how products should be sold. But actually the availability of products or services to the targeted customers becomes efficient and effective through the use of marketing intermediaries. The reason behind their efficiency is the experience, specialization, scale of operation and their contacts that can make possible for them to achieve something extra than the independent achievement of the business organization.
In fact the intermediaries lower the burden of workload by the manufacturers and customers in searching for their desired items. The marketing intermediaries buy the bulk of quantities of different types of products from different manufacturers. They then make a wider assortment of this product, but in smaller quantities. In this way these intermediaries match the different demands of customers with the different supply of products from different manufacturers.
Besides the physical products and services are effectively distributed to the demanding customers by the employment of marketing intermediaries both in private and public sector, service provider organizations still pay special attention to the customers.
Functions of Marketing Intermediaries
The products or services are transferred from manufacturer to the customers through marketing intermediaries. The place, time and possession gaps are overcome by the marketing intermediaries that separate the products or services from their users. Following are the important functions of marketing intermediaries.
1) Information: One big function of marketing intermediaries is that they are helpful in provision of useful information about the forces and actors in the markets in the management and marketing research teams.
2) Promotion: They also communicate with the customers about the new offering of the businesses.
3) Contact: Prospective customers are found by the marketing intermediaries and then they are effectively communicated by these intermediaries.
4) Matching: Marketing intermediaries also match the various diversified needs and wants of customers to the different supplies of the manufacturers including the assembling, grading and packaging of products.
5) Negotiation: This is an important function in which the intermediaries negotiate with the customers in order to reach at a certain price so that the ownership of the product is shifted.
There are also some other functions that are performed by these intermediaries which are.
6) Physical Distribution: The physical distribution of products is also done by them.
7) Financing: Intermediaries also provide some funding to the businesses which are properly used by the businesses to cover some of their distribution costs.
8) Risk Taking: These intermediaries also take some risk in acquiring different old and new products or services from various businesses.