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What are the various types and functions of marketing intermediaries? Which are more important for large business and why? Which are more important for the small business and why? How could additional marketing channel options in the simulation help you better serve your target market?
Submitted on:
Jan 19, 2024, 6:39 PM
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Angelique Mares
Jan 22, 2024, 11:58 PM
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Hello class,
Types and Functions of Marketing Intermediaries:
Marketing intermediaries are entities that facilitate the distribution of products or services from producers to consumers. They help bridge the gap between manufacturers and end customers by performing various functions. The types of marketing intermediaries include wholesalers, retailers, distributors, agents and brokers (Daniels, 2021). The various functions performed by marketing intermediaries include distribution, promotion, financing, market information, risk taking, and negotiation and contracts. In distribution, intermediaries ensure that products reach the right locations efficiently, coordinating transportation, warehousing, and inventory management. In promotion, intermediaries engage in marketing activities to promote products and build brand awareness among target customers. In financing, they provide financial resources to manufacturers, such as offering credit terms or loans, to support their production and distribution activities. In market information, intermediaries gather market insights, consumer behavior data, and information about competitors, helping manufacturers make informed decisions in their marketing strategies. In risk taking, intermediaries assume some degree of market and financial risk by investing in inventory and assuming responsibility for the product’s success in the marketplace. Lastly, intermediaries negotiate contracts and terms between manufacturers and buyers, streamlining the purchasing process and ensuring smooth transactions.
Importance of Marketing Intermediaries for Large vs. Small Businesses:
For large businesses, the functions of marketing intermediaries related to distribution, financing, and risk-taking are often more critical. Large businesses typically have extensive product offerings, widespread distribution networks, and higher production volumes. Therefore, they rely on intermediaries to efficiently manage logistics, secure funding for large-scale operations, and assume risks associated with market fluctuations.
Conversely, small businesses may benefit more from intermediaries’ functions related to promotion, market information, and negotiation. These businesses often have limited resources and may lack the marketing expertise or access to market information that intermediaries can provide. Intermediaries can help small businesses reach their target audiences, gather insights about consumer preferences, and negotiate favorable terms with retailers or distributors.
Benefits of Additional Marketing Channel Options in Simulation:
Additional marketing channel options can better serve the target market in the simulation by providing greater accessibility, flexibility, and convenience. For example, online e-commerce platforms offer an additional channel for customers to purchase products, providing 24/7 accessibility and a wide geographical reach. This helps reach customers who prefer online shopping or who may not have access to physical retail locations. Also, introducing direct sales channels, such as company-owned stores or pop-up shops, allows businesses to interact directly with customers, provide personalized experiences, and gather valuable feedback. Another marketing channel is a subscription service. Offering subscription-based models can provide recurring revenue streams and build customer loyalty through convenience, customization, and exclusive perks for members. By expanding marketing channel options, a business can customize and serve to the preferred purchasing behaviors and preferences of their target market, enhancing customer satisfaction and ultimately driving sales and growth (Peek, 2023).
Thank you for reading.
Angelique Mares
References
Daniels, R. 2021, April 1. Marketing intermediaries | Functions and levels. Business Study Notes. https://www.businessstudynotes.com/marketing/principle-of-marketing/marketing-intermediaries/
Seek, P. 2023, November 16. Expanding distribution channels. Business.com https://www.business.com/articles/expanding-distribution-channels/
Marketing intermediaries: The distribution channel. Britannica. https://www.britannica.com/money/topic/marketing/M…
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