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4 Types of Marketing Intermediaries

Channel functions and flows

❶They ship full truck-load or car-load of goods.

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Management of channel systems
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A company will incur frequent changeovers and shorter production runs to be able to provide a broad product line. Therefore its production cost will be high.

And since the company has to provide immediate delivery, inventory has to be kept in the retail stores. These companies incur low production cost but higher inventory cost as the product has to be made available in the retail store. Mail-order and e-stores follow this strategy.

They offer a wide range of products and supply them to the customers from a central warehouse. Some companies compete on the basis of low cost. These companies try to minimize transportation and inventory costs while maintaining adequate service levels.

These companies keep minimal amount of inventory in the stores. They use low-cost modes of transport like rail. They ship full truck-load or car-load of goods. They centralize inventory as much as possible, especially for low-volume items.

The low-volume items may be shipped by air-carriers if they are high-value items. Lower inventory costs outweigh higher transport charges for high-value, low volume items if they have to be delivered immediately. These companies also strive for lowest cost routing of products from plants to warehouses to customers. Channel intermediaries are responsible for ensuring the product is available at the right quantities, at the right time and place for end user consumption.

They also serve as a channel of communication between the consumer and producer regarding such issues as product quality. Intermediaries may sometimes provide transport and logistics management for the distribution process. They also offer storage and handling of the product as it makes its way towards the consumer. Channel intermediaries may also facilitate payment processing for certain products.

Explain the role of channel intermediaries in the product distribution process. Expert Answers Karen P. Definition and Function in Business " Starting with definitions , the product distribution system is a product flow channel that begins with logistical transportation to outlets, such as retailers, and ends with transportation to end customers Definition and Function in Business " Starting with definitions , the product distribution system is a product flow channel that begins with logistical transportation to outlets, such as retailers, and ends with transportation to end customers.

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Channel functions and flows In order to deliver the optimal level of service outputs to their target consumers, manufacturers are willing to allocate some of their tasks, or marketing flows, to intermediaries. Management of channel systems Although middlemen can offer greater distribution economy to producers, gaining cooperation from these middlemen can be problematic.

Wholesalers Wholesaling includes all activities required to sell goods or services to other firms, either for resale or for business use, usually in bulk quantities and at lower-than-retail prices. Merchant wholesalers Merchant wholesalers, also known as jobbers, distributors, or supply houses, are independently owned and operated organizations that acquire title ownership of the goods that they handle.

Full-service wholesalers Full-service wholesalers usually handle larger sales volumes; they may perform a broad range of services for their customers, such as stocking inventories, operating warehouses, supplying credit , employing salespeople to assist customers, and delivering goods to customers. Limited-service wholesalers Limited-service wholesalers, who offer fewer services to their customers and suppliers, emerged in order to reduce the costs of service.

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Channel Intermediaries: Definition. How does a consumer go about purchasing a product? Do they knock on the door of the producer? Most products are purchased from channel intermediaries, whose main purpose is to deliver product from the manufacturers to the end users. The purpose of a channel intermediary is to move products to consumers, .

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Intermediaries. Intermediaries, also known as distribution intermediaries, marketing intermediaries, or middlemen, are an extremely crucial element of a company’s product distribution channel. Without intermediaries, it would be close to impossible for the business to function at all.

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Channel intermediaries are defined as entities that facilitate one or more steps in the product flow channel and perform transactional, logistical, and facilitational functions required by the manufacturer. There are four types of channel intermediaries: distributors, agents, wholesalers, retailers. These intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers), distributors, or financial intermediaries, typically enter into longer-term commitments with the producer and make up what is known as the marketing channel, or .

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Importance of Channel intermediaries in Product Distribution! Products need to be made available in adequate quantities, in convenient locations and at times when customers want to buy them. Channel intermediaries are those organizations which facilitate the distribution of products from producers.