marketing intermediaries why marketing intermediaries are used

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litteacher8's profile pic

litteacher8 | High School Teacher | (Level 3) Distinguished Educator

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I think that social media and internet marketing are the best examples of marketing intermediaries being very successful. Yelp, Twitter, Facebook and Groupon can help businesses target customers, and expand to new markets. Basically, social media is the age-old standby of word-of-mouth brought to the next level. Companies can very successfully take advantage of these online networks to take advantage of the customers who like their services, using them to reach out to new customers in a way much more powerful than traditional marketing.

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amy-lepore | High School Teacher | (Level 1) Educator Emeritus

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Marketing intermediaries are used because some businesses need the "middle man" to deliver the goods to the public.  Marketing intermediaries perform a series of functions that ultimately get the product to the customer, and in some cases manufacturers are not able to perform these functions without the help of the intermediaries (retailers, wholesalers, distributors, dealers, franchises, and agents just to name a few).

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user3442534 | eNotes Newbie

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Insurance marketing is concept selling. Hence awareness has to be created first.needs are existing but has be realised and their desires are to be converted jnto wants.to do this intermediaries are required.iintermediaries are independent and play the role of connecting theseller and the buyer of tbe service. He is representing either party to the opposite party.his role is crucial in the sensethat the whole legal contact of insurance is initiated,

Professed and complete with his intervention only. Not only that he ia paid the majority claim or death claim.HE owe thelots of responsibility toward both the parties morally and legally.

krishna-agrawala's profile pic

krishna-agrawala | College Teacher | (Level 3) Valedictorian

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Marketing intermediaries are independent businesses that form the distribution channels through which a product passes on its way from a manufacturer to end user. While some manufacturing companies sell their products to end-users directly, most prefer to use distribution channels consisting of intermediaries.

A part of the price paid by the end users for the product they buy is retained by the distribution channel as its margin to cover their costs and also profit. Yet, manufacturers use their services because they also provide some benefit or advantage to manufacturers to justify the remuneration they get for their services.

Generally goods are manufactured in large quantities at a few centralized locations, to reap the advantages of economy of scale. However the end users are widely dispersed over large geographical areas. The goods manufactured must be transported from the manufacturing locations, and delivered to each retail customers, when and where they want. Toilet soap is purchased by millions of customers from retail stores hundreds of thousands of retail stores. A soap manufacturer will find it find it very expensive to deliver soaps directly to each of these millions of customer directly. Using the services of middlemen the manufacturers distribute their product economically and quickly.

Distribution channel provides many benefits to customers also. When a person is suffering from some illness and the doctor prescribes a life saving medicine, we are generally able to buy immediately from a medicine shop near our house. If we were to buy such medicines, directly from the pharmaceutical companies manufacturing them, we will find it very expensive and time consuming. If we need multiple medicines, manufactured by different companies, our problems get multiplied further. But distribution channels make the task of buying medicines very simple. We can buy what we want quickly and conveniently.

Intermediaries enable customers to buy many different items manufactured by different manufactures at one place. For example, customers generally buy bread or butter together, although these two items are rarely manufactured by the same company. Also customers can examine alternative brand or variety of products at one place and decide what suits their requirements. Thus they have a wider range of products to choose from. The retailers may also provide advice and add on service to customers to help them choose the right product. A salesman in a shoe shop may advice its customer on the right type of shoes for different purposes like jogging, mountain climbing, and very cold climates. They also help the customers to try out the fit of the shoes.

The distribution channel also supplements the resources of the manufacturers in many ways. The distribution intermediaries invest substantial amount of money in stocks, credit extended to customers, warehouse, offices, shops and other facilities used for distribution of products.

Distribution intermediaries help manufacturers by providing resource support and services in many other ways. Perhaps the most important of these resources is the widely dispersed geographical presence. As compared to manufacturers, the distribution intermediaries are much more widely distributed. Even the biggest auto companies in the world have don’t have more than dozen or so final assembly plants, but dealers selling their automobile numbering thousands have their presence in many different countries.

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