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Necessity of Marketing Channels & Intermediaries

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Why are marketing channels and intermediaries necessary?
With companies selling directly to customers over the internet in increasing numbers, is this always a good thing?
Why do channel arrangements sometimes need to be modified over time?

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Solution Summary

This solution discusses why marketing channels and intermediaries are necessary. It also discusses if companies selling to customers over the internet is always a good thing, and addresses why channel arrangements sometimes need to be modified over time. It gives examples and links.

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Marketing channels and intermediaries help manufacturers find the best outlets for their products. These options give manufactures an opportunity to sell through thousands of stores, and various channels. Intermediaries help move products from manufacturers to the end user by focusing on merchandising and marketing, which may not be the specialty of the manufacturer. By focusing solely on making the product, the producer can rely on sourcing materials and producing quality items at the best possible price. An intermediary can focus on marketing and advertising to retailers and consumers, focusing on sales. Also, an intermediary can make the distribution channel more effective as contacts are eliminated between manufacturers and consumers, and focused. Some chains don't want to deal directly with manufacturers so an intermediary will buy goods and sell them to businesses. Furthermore, an intermediary can offer the consumer or retailer a wider selection of products, thus attracting more consumers/retailers. ...

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Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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