What is a business intermediary?
A business which acts like a link between the sellers and the buyers.
What does a distribution intermediary do?
help a firm to promote, sell, and make available a good or service through contractual arrangements or purchase and resale of the item
Who does a business intermediary usually represent?
They generally represent the sellers, and sometimes the buyers.
what does the word intermediary mean?
someone who plays the middle role of any case
Why need a business intermediary?
the process of selling can be long, complex, and frustrating and an intermediary can help find buyers quickly and help to sell to them
What advantages does intermediary give?
Adds great value, market coverage, customer contacts, lower costs, systematic cash flow
What is the process of distribution intermediary?
Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until the item reaches the final buyer
Whats another word for distribution intermediary?
Whether to use an intermediary depends on what?
determining whether the needs of the consumer can successfully be met by the available resources and skills of the producer.
What are the 3 basic functions of an distribution intermediary?
transactional, logistical, facilitating
What is the function of transactional?
This function adds value to the distribution channel by either undertaking the marketing and sales function, or establish buyer-seller relationships by being the link between manufacturer and the retailer.
What is the function of logistical?
This function involves the physical distribution of goods. It sorts and stores supplies, and also breaks up the bulk production into smaller portions, and transport smaller shipments
What is the function of facilitating?
It supplements the entire marketing flow of the product. It financially supports the marketing chain by investing in storage capabilities.
How does the intermediary add value to the market?
By bringing in specialization, marketing knowledge, selling skills, and has the capacity to segment the market
How do some manufacturers see intermediaries?
Some see them as parasites rather than assets.
What are some fears producers have of intermediaries?
Fear of losing control, of customer contact, and of customer ownership.
What are some examples of intermediaries?
Retailers, wholesalers, distributors and dealers, franchises, and agents.
Whats another word for intermediaries?