Do you know what the marketing intermediaries are? This may be a strange word to many people, but with great importance in the marketing.

A marketing channel is a group of interrelated organization that directs the flow of products from producer to ultimate customers. The channels are also called marketing intermediaries. The two major categories of marketing intermediaries are wholesalers and retailers. Wholesalers are individuals and organizations that sell primarily of goods. Retailers specialize in selling products to consumers. They generally resell products that they obtain form wholesalers.

Consumers often wonder whether products would cost less if one or more marketing intermediaries could be eliminated from the distribution system. Would cars be less expensive if customers could simply buy them straight from the manufacturer? Perhaps, but think about the practical aspects involved. How many consumers would be willing or able to go to Detroit to buy a car? Or maybe Japan? If manufacturers offered cars for sale by mail order, how many consumers would buy one without seeing and test-driving it? Carmakers selling vehicles directly to buyers from around the United States or around the world would be impossible.

Marketing intermediaries are vital in creating place, time, and possession utilities. They ensure that products are available on a timely basis where they are needed. Eliminating intermediaries does not eliminate the need for their services, such as storage, delivery, and providing a product assortment. The manufacturer, the consumer, or some other organization has to perform these essential services. Without intermediaries, most consumer purchases would be much less efficient. Products probably would cost more, not less.

Source by Fiona Keneth