State and explain the different types of intermediaries in marketing.

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1. Retailers – sell direct to the consumers and may either purchase from manufacturers or wholesalers , depending on the purchasing power and volume. There are several types of retailers depending on their size and location.
2. Wholesalers : Classification of a wholesaler or retailer is determined by the purchaser, not by the price. If over 50% of sales is with other intermediaries then the intermediary is a wholesaler. If over 50% of sales is with the consumer, then the intermediary is a retailer. Firms can engage in wholesaling activities without being wholesalers.
3. Distributors and dealers _ add value to goods through special services associated with stocking ,or selling inventory, credit and after- sale services. They are more structured and have a close relationship with the producers .They require a certain level of expertise to be effective.
4. Franchisees- a franchise is a contractual relationship in which the franchisor licenses a franchisee to produce and market goods or services under the terms laid down by the franchisor for a fees and / or royalties .Franchisees therefore are intermediaries who hold contracts to supply and market product under the terms set by the franchisors for a fee or royalties. The franchise agreements covers specifications of the products and marketing services.
5. Agents and Brokers : Negotiate purchases, expedite sales but do not take title. Functional middlemen, that bring buyers and sellers together. Compensated with commission. Agents represent buyers and sellers on a permanent basis. Brokers represent buyers and sellers on a temporary basis.
• Manufacturers Agent-over half of all agents. Represent two or more sellers and offer customers complete lines. Handle non- competing (complementary) products. Written agreements.
• Selling Agent-market either all specified line or manufacturers entire output. Perform every wholesaling activity except taking title of the product. Used in place of a marketing department. Represent non-competing product lines.
• Commission Merchant-focus primarily on the selling task. Receive goods on consignment from local sellers and negotiate sales in large central markets.
• Auction Companies-provide storage for inspection. Sales made to the highest bidder.
• Brokers-negotiate exchanges-perform the fewest intermediary functions. Assume no risk.
6. Manufacturers Sales branches and offices : Resemble merchant wholesalers operations, 9% of wholesale establishments and generate 31% of wholesale sales. Manufacturer owned.
• Sales Branches-sell product and provide support services to manufacturers sales forces.
• Sales Office-serves normally associated with agents; like sales branches located away from a manufacturing plant-carry no inventory.

Lellah answered the question on November 8, 2021 at 05:15

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State and explain the different types of intermediaries in marketing.

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