Topic

Managing Retailing, Wholesaling, and Logistics

Instructions

What are intermediaries and why are they important?

Answer Preview

Market intermediaries are also termed as the distribution intermediaries or middlemen, and they are important components of the product dissemination channel. In essence, intermediaries are businesses or people who make it possible for the good or product to make it from the producer to the consumer, essentially streamlining the sales process. Intermediaries are important because they usually fulfill a logistics and information role. Intermediaries also create value by simply adding efficiency to marketplaces for services or products that are innately “many-to-many” in nature. Most marketers have numerous suppliers as well as many consumers. It might be inefficient for each supplier to introduce contact and interact directly with each consumer.

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