Intermediaries is an individual or firm such as an agent, distributor, wholesaler, and retailer that links producers to other intermediaries or the ultimate buyer. Marketing intermediaries help a firm to promote, sell and make available a good or service through contractual arrangements or purchase and resale of the item. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until the item reaches the final buyer. Also called distribution intermediary. In marketing often, the wholesaler will fill a role in the promotion of the products that it distributes. This might include creating displays for the wholesaler’s products and providing the display to retailers to increase sales. The wholesaler may advertise its products that are carried by many retailers.
However, to deliver a finished product to the end user, a corporation will use several channels of distribution. One of the core facilitators of distribution is the market intermediary that works as the connection between the products and the end users. Because intermediaries are such an influential part of the distribution chain, these intermediaries will affect the business in a few of ways. A businesses use market intermediaries because of their large part in distributing and promoting the product, market intermediaries have big influences on sales of the products and customer demand in the market. With so much riding on marketing and distribution, market intermediary firms have just as much vested internet in the success of a product as the manufacturer. Therefore, they work hard to ensure the product and the company have a successful result.
Besides that, business to business marketing involves the sales of one company’s product or services to another company. B2B marketing techniques rely on the same basic principles as consumer marketing, but are carry out in a unique way. The consumers are not choosing products based on price but on the product popularity, status, and other emotional triggers, B2B buyers make decisions on price and profit that have potential to increase. Finding a new way to encourage relationships throughout social media is currently a hot topic in the B2B marketing world. Social media platforms have opened up two way conversations between businesses. The businesses are more likely to buy a product from companies that they believe and track through social media (Chadwick Martin Bailey, 2012) Tech-savvy B2B companies have continued to find innovative ways to use social media to their advantage. B2B marketing also involves building valuable relationship to guarantee lasting customers.
Choosing the right distribution channel to be used by the company products is vital to the success of the business. By knowing what the implications of engaging intermediaries are and obtain a well-documented agreement before commencing business. I agree with the point that technology use in marketing intermediaries give more benefits.
There are more advantages of technology to the intermediaries, Intermediaries are engaged with one another as they provide logistic support for the company. They ensure the process is smooth and effectives on physical distribution of goods. They take care of sorting and storage of supplies at facilities of products that are close and easily reachable to the end customer. Generally, a business bulk inventory is divided up into smaller section and distributed among intermediaries for distribution process. Intermediaries also facilitate manufacturer with services and also provide customer care services both before and after sales. Other than that, intermediaries provide transactional functions. Intermediaries can use their contacts to effectively aid coverage. This is suitable for both the manufacturer and the end user. Intermediaries usually carry out marketing, sales activities and responsible for set up and enhancing buyer and seller relations between the producer and retailer. Intermediaries often boosts sales by make use of various persuasive techniques such as attractive promotion offers and product displays. They also provide customer feedback to the producer so it can make lead to changes.
However, there is disadvantages of technology that effect the intermediaries. It’s lack of control. When the company use marketing and sales intermediaries, they might be one of many companies they represent, and they most likely won’t pay the same attention to communicating the messages and protecting the brand as they would. If a retailer can’t sell its inventory of company product, they should make discount and it so low that the public thinks they have a product that’s low or won’t sell. Customers might also come to the company intermediaries for the products post-sales services and get a bad experience. Based on negotiate agreements that has been specify on how intermediaries can promote the products in the market, where they can sell them, and what prices they can charge. Other than that, it’s increased will increase costs. When the company use intermediaries, they must pay them a commissions or offer a discount. This decreases the company profit margins, even though they might have increased sales and revenues. Project company gross profits before they sign a long-term distribution agreement to determine if it’s a cost-effective option for the company.
There is marketing implication when the companies are using intermediaries in their business. When intermediaries are switching to technology in operating their business, it’s become more effective than the old way. The internet and the web will radically change the distribution channel. The new medium will affect the key expectation upon which traditional distribution philosophy is based, and in practices provide many conventional channels and intermediaries obsolete.
Understandably at these early stage, what the technology can do for intermediaries is their focus has either been on the web from a general marketing perspective, or as a marketing communication medium. While this attention is important and justify, they give less attention to the web’s impacts on distribution channels, and this become more significant than its impacts on communication. Indeed, as we shall argue, in the future distribution may change from channels to media. Thus, major effects that electronic commerce will have on distribution where it will kill distance, homogenize time, and make location irrelevant.
Major effect that electronic commerce will have on distribution where it will make the location irrelevant. Any screen-based activity can be operated anywhere. The web bookstore Amazon.com, one of the most written about of the new web-based firms, supplies books to customers who can be located anywhere, from book supplier who can be located anywhere. The location of Amazon.com matters to neither book buyer nor book publishers. No longer will location be key to most business decisions. The company that have moved from marketplaces to marketspaces. To compare marketspaces-based firms to their traditional marketplaces- based alternatives, one needs to contrast three issues on content what the buyer purchase, context on the circumstances in which the purchase occurs, and infrastructure that simply what the firm needs in order to do the business.
However, to differ the effects of technology vertically, with the basic functions of distribution channels horizontally, it gives permits on the construction of a three-by-three grid, that called as the internet distribution matrix. The company can give an idea that help to a powerful tool for managers who wish to identify the opportunities for using the internet and the web in order to improve or change distribution strategy. It can also aid in the identification of competitive threats by allowing managers to concentrate on areas where competitors will use technology in order to perform distribution function more effectively.