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Intermediaries, role and function

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Advertising: product, place/market where available, manufacturer, price, quality and quantity. Manufacturer's reputation goes a long way in helping a customer make up his mind to purchase the item. A customer will be prepared to pay higher price for the reputed manufacturer's product than to one manufactured by unknown producer, even though the quality may be better than the former's. The intermediary advertises about the product and the offers that he is making on the purchase of it to buyers.

Advertising is the means of communication persuading audience to continue buying the same product or try a new one
The messages are generally sponsored and viewed on TV, Magazines, Radio, or these days through direct mails, blogs, websites or text messages. Intermediary arranges for all these facilities leaving the manufacturer concentrate on production.

Provide three examples when advertising to intermediaries might be necessary? What are the objective(s) of such advertising?

In the first the resources of intermediaries are channelized in setting up marketing linkages and contacts with customers. Intermediaries either themselves perform this role or engage the service of specialized agencies particularly in case of highly sophisticated technical items.

B) Logistical: It is a vital role in maintaining the price level by helping the producer keep low inventory and distributing the finished products fast. It is physical distribution of product after sorting and storing and making available to final consumer when needed. It enables the producer use the vacant space for any more useful alternative use, and avoid blocking of huge funds in inventory and storing finished goods.

C) Facilitating: The intermediary arranges for storage and renders financial support to the marketing chain. He further helps buyers purchase in installments.

Together, these functions performed by the intermediary ensure market coverage, reduce the cost of market coverage, increase the availability of cash flow in the distribution channel, and increase end-user convenience. A producer can bypass an intermediary by elimination or substitution, but the tasks performed by the intermediary cannot be eliminated.

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Necessity and objective advertising through intermediaries.

It is very important that the consumer has the knowledge of the place where he can complete his transaction.The goal of the producer is to identify the place where he can market his product. The final consumer must have an idea of this place to complete his transaction. In absence of it, despite the quality of rest of marketing mix the result will be a catastrophic causing severe down slide in sales.

It basically is the reason to ascertain whether the need of the consumer can be met profitably using the skills and resources of the producer. When we talk of the skill we mean intra as well inter-organizing skills. The producer may not have these skills. Intermediaries fill the gap between points of production and sale.

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