Understanding the 4 Types of Marketing Intermediaries in Business
Every business in the world needs marketing intermediaries to facilitate their product distribution. Marketing intermediaries are the middlemen between the producers and the consumers who aid in the movement of goods from the producer to the final consumer. Essentially, intermediaries help reduce the number of contacts between producers and consumers, which can be a great advantage in managing the process of product flow efficiently. In this article, we will look at the 4 main types of marketing intermediaries and how they work.
Wholesalers
One of the oldest types of marketing intermediaries, wholesalers are a vital link in the supply chain, particularly for businesses that rely on bulk sales. Wholesalers, also known as distributors, purchase products in large quantities from manufacturers and sell them to retailers at a price that is slightly lower than the retail price. Retailers then resell these products to consumers for a higher price, making a profit and keeping the supply chain moving.
Wholesalers are an ideal intermediary for businesses that need to move large quantities of products, as wholesalers typically have extensive distribution networks and expertise in supply chain management. For example, a company that produces furniture may use a wholesaler to sell large quantities of their furniture to retailers across the country, who can then sell them to individual customers.
Retailers
Retailers are the most common type of intermediary that most people are familiar with. Essentially, retailers purchase products from wholesalers and sell them directly to consumers for a profit. Retailers are essential to the supply chain since they provide consumers with easy access to products and expose producers to a vast audience.
Many businesses rely on retailers to move their products since they can reach a large customer base in a short amount of time. For example, a cosmetic company that produces makeup might use retailers such as Sephora or Ulta to distribute its products to a wider audience, bringing in more sales and boosting revenue.
Agents
Agents are a type of intermediary that works closely with businesses by helping them market and sell their products to other businesses. Agents act as a liaison between producers and consumers to facilitate the sales process. These intermediaries help negotiate the terms of sale, arrange distribution and shipping, and handle other important tasks that help businesses achieve their sales goals.
Agents are often used in industries where there is a high level of competition, and businesses need to leverage their relationships with other companies to gain a competitive advantage. For example, a car manufacturer may use agents to help them sell their products to dealerships, ensuring that their vehicles get maximum exposure and generate sales.
Brokers
Brokers are intermediaries who connect buyers and sellers and facilitate transactions between them. Essentially, brokers bring together two parties and charge a commission for their services. Brokers are used in a variety of industries, such as real estate, stock trading, and art auctions.
For example, a broker may help a person who is looking for a new home find a suitable property to purchase. The broker will charge a commission for their services, which usually is a percentage of the sale price of the property.
Conclusion
Marketing intermediaries play an essential role in the distribution of goods between producers and consumers. By understanding the four main types of intermediaries – wholesalers, retailers, agents, and brokers – businesses can choose the most suitable intermediary for their needs and boost their sales, expanding their customer base and increasing revenue. By leveraging the expertise of intermediaries, businesses can better manage the logistics of the supply chain and focus on producing quality products that meet customer needs.
