Concept of Marketing Intermediaries

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Concept of Marketing Intermediaries
The third P of the 4 Ps of marketing is place. Marketing intermediaries, also known as resellers, buy products to resell at a profit. Intermediaries include certain types of resellers such as wholesalers and retailers, who purchase products from manufacturers, then distribute them to consumers and other buyers. A channel of distribution includes the locations where sellers market their products to the final consumer. This could be a combination of institutions through which sellers deliver their product (i.e., wholesalers, retailers, agents). There are many marketing functions that are handled by these intermediaries, including buying, selling, sorting, financing, storage, and transportation. The conventional channels of distribution involve many methods of getting products to the final consumer. These methods may include distribution from the manufacturer directly to the consumer, distribution from the manufacturer to a retailer to the consumer, and several others. From a strategic point of view, the term "supply chain management" connotes a holistic, systems approach to viewing product distribution as an integral component of partnering with vendors, suppliers, and various intermediary marketers.
When determining a channel of distribution plan for a company, the choice of channel may be influenced by the distribution coverage required, the degree of control the company desires, the total distribution costs, economies of scale, and channel flexibility. Distribution "can be viewed along a continuum ranging from intensive to selective to exclusive distribution" (Peter and Donnelly, 2007, p. 150):
 Intensive distribution − "the manufacturer attempts to gain exposure through as many wholesalers and retailers as possible" (Peter and Donnelly, 2007, p. 150). An example of intensive distribution would be marketing…...

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