What role do intermediaries play in business?

For manufactures to get their products to their end consumers, they normally use several channels of distributions. One of the main facilitators of distribution is intermediaries that work as connections between the manufactures and their end customers. Being that they are such a vital factor in the distribution chain, these intermediaries affect businesses in many ways. Marketing intermediaries are companies that are contracted by the manufacturer of a product to promote, sell, and distribute their product to the end customer. Some types of Marketing intermediaries include:

Distribution companies (Sell the product to customers)

Retailers (Sell the product to customers)

Wholesalers (Sell the product to customers)

Agents (Assist with product promotion)

Marketing agencies (Assist with product promotion)

Using intermediaries results in increasing product awareness, making the product available to a larger audience that ultimately drives increases in sales and revenue. Intermediaries also allow for lower distribution costs by lowering the cost of advertising/promotion that ultimately results in higher profits for the end product. They also work on researching the insights of customer relationship and their awareness within the consumer market. Using that information, they promote the product via the marketing channels that builds customers relationships that results in increasing brand loyalty and awareness. Using intermediaries and the development of a marketing plan, packaging, and promotion can help ensure that customers return, and even affect the success or failure of a product. The final question arises why use intermediaries? Because they play a large part in the promotion and distribution of products, intermediaries influence customer demand and sales. Being that marketing and distribution play such a large role in product sales, intermediaries also share an interest in the success of a product alongside the manufacturer. Essentially, intermediaries work hard to ensure that products and manufacturers have a successful result with their customers.

By: Brandon Diaz

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