Middlemen
| MIDDLEMEN | | 5/14/2013 |
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Marketing can be described as a business activity that satisfies customer wants and needs by developing, pricing, distributing, and promoting products focused at achieving organisational goals to buy their products (Rix 2011,7). It is distributed from two different main channels, namely the direct and indirect channel. Direct channel is business to consumer while indirect channel is business to business (Rix 2011, 395). In indirect channel, most businesses use intermediaries or middlemen to ship to the wholesalers and retailers before the merchandise is displayed to the consumers (Rix 2011, 396). This essay examines the benefits of eliminating middlemen by dealing directly to the end users.
Intermediaries can be described as an acting party that offers a service by charging a commission for the work they provide for aiding the producer to sell. Necessity of intermediaries can differentiate in various situations, leaning on the scope of its transaction, the product and the location (Reed 2007, 198). Intermediaries consist of agents, wholesalers and retailers. First of all, agent is an initial salesperson that represents the producer on contractual basis to inform and discuss with customers face to face about certain products whether it is a new product or old. Secondly, you build up a close relationship with the agent in order to get satisfactory result. Their role is to get orders from the users and pass it on to the producers and it a sale is made the agents will receive a commission. Agents do not stock the products. Agents are needed for those companies who just started or don’t have the source or ability to sell to different regions. Agents help these companies to extend their market overseas (Biemans 2010,196).
Retailer is an organization or individual that sells the merchandise or product or item directly to the end customers. Unlike wholesalers or suppliers, who usually sell the goods or products to another
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Marketing can be described as a business activity that satisfies customer wants and needs by developing, pricing, distributing, and promoting products focused at achieving organisational goals to buy their products (Rix 2011,7). It is distributed from two different main channels, namely the direct and indirect channel. Direct channel is business to consumer while indirect channel is business to business (Rix 2011, 395). In indirect channel, most businesses use intermediaries or middlemen to ship to the wholesalers and retailers before the merchandise is displayed to the consumers (Rix 2011, 396). This essay examines the benefits of eliminating middlemen by dealing directly to the end users.
Intermediaries can be described as an acting party that offers a service by charging a commission for the work they provide for aiding the producer to sell. Necessity of intermediaries can differentiate in various situations, leaning on the scope of its transaction, the product and the location (Reed 2007, 198). Intermediaries consist of agents, wholesalers and retailers. First of all, agent is an initial salesperson that represents the producer on contractual basis to inform and discuss with customers face to face about certain products whether it is a new product or old. Secondly, you build up a close relationship with the agent in order to get satisfactory result. Their role is to get orders from the users and pass it on to the producers and it a sale is made the agents will receive a commission. Agents do not stock the products. Agents are needed for those companies who just started or don’t have the source or ability to sell to different regions. Agents help these companies to extend their market overseas (Biemans 2010,196).
Retailer is an organization or individual that sells the merchandise or product or item directly to the end customers. Unlike wholesalers or suppliers, who usually sell the goods or products to another