Channels and intermediaries
This consists of interdependent entities that are aligned for the purpose of transferring possession of a product from producer to consumer or business user.
Often, intermediaries provide a sales force to represent a manufacturer’s product line. What function does this intermediary serve?
This is any business activity that creates value in the delivery of goods and services to consumers for their personal consumption and is an essential component of the supply chain.
Independent business entity that links producers and end-user consumers or organizational buyers.
Without readily available credit at various stages in the distribution process many channels could not operate. In any given channel, when credit is required by one channel member it may be facilitated by another channel member such as a producer, wholesaler, or retailer, depending on the situation.
Wholesale middleman, found especially when selective or exclusive distribution is common and strong promotional support is needed. Sometimes used synonymous for a wholesaler.
Because intermediaries are closer to end-user consumers and business users than manufacturers, they are in an ideal position to gather information about the market and consumer trends. Collecting and sharing market and competitive information helps members of the channel continue to offer the right product mix at the right prices.
ability to see/try on product?
ask questions of salesperson?
Entity primarily engaged in buying, taking title to, storing (usually), and physically handling goods in large quantities. They resell the goods (usually in smaller quantities) to retailers or to organizational buyers.
Intermediaries frequently receive incentives from manufacturers to participate in helping promote products in the channel.
Entity primarily engaged in selling to end-user consumers
Relatively few producers operate their own transportation networks or provide warehousing facilities. Producers make money by pushing finished goods out the door and into the channel of distribution. As such, these functions are among the most commonly provided channel intermediary activities.
This type of strategy means that much of the intensive promotional activities take place from the manufacturer downward through the channel of distribution.
For example, Kraft foods gives TOPS promotional allowances to advertise their products.