Types of intermediaries, Marketing Management

Types of intermediaries:

1. Sole selling agent\marketer: when a manufacture prefers to stay of the marketing and distribution task he appoints a suitable agency as his sole selling agent\marketer and entrusts the marketing job with him. A sole selling agent or a marketer is usually a large marketing intermediary with large resources and extensive territory of operation. He will be having is own network of distributors\stockists\wholesalers semi whole salers and retailers. He takes care of most of the marketing and distribution functions on behalf of the manufacture. Obviously a sole selling agent marketer will earn a large margin commission compared to other types of intermediaries.

2. c&f agents (cfas): in many cases manufactures employ carrying and forwarding agent often reffered to as c&f agents or cfas.the cfas can be described as special category whole sellers. They supply stocks on behalf of the manufacture to the whole sale sector or the retail sector. Their function is distribution. Their distinguishing characteristic is that they do not resell products but act as the agent representative of the manufacture. They act on behalf of the manufacture and as his extended arm. In essence they are manufactures branches.

3. Wholesaler\stockist\distributor: a wholesaler or stockist or distributor is also a large operator but not on a level comparable with a marketer or sole selling agentin size resources and terriotory of operation. The whole saler stockist distributor opeates under the marketer sole selling agent where such an arrangement is used by the manufacture.

4. Semi wholesalers: semi whole sellers are intermediaries who buy products either from producersor whole salers in bulk break the book or resell the goods mostly to retailersin assortments needed by them. Like the whole salers semi whole salers too perform the various whole selling functions that are part of the distribution process. In some cases they may also perform the retailing functions. Their strength is specialization by region. They assist the producer is reaching a large number of retailers efficiently.

5. Retailer or dealer: retailers sell to the house hold ultimate consumers. They are at the bottom of the distribution hierarchy working under whole saler or stockist or distributors or semi whole sellers as the case may be. In cases where the company operates a singlr tier distribution system, they operate directly under the company. The retailers are also sometimes referred to as dealer or authorized. They operate in a relatively smaller territory or at a specific location; they do not normally perform the stock - holding and sub -division functions. The stock that they keep is operational stocks necessary for the immediate at the retail outlet.

Value - added resellers (VARs): they are intermediaries assume ownership of the goods that they sell to customers or other intermediaries. Merchants usually taken physical possession of the goods that they sell.

Posted Date: 9/19/2012 7:21:32 AM | Location : United States

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