Which of the following statements about marketing intermediaries is false? The main function of a marketing intermediary is to bring demand and supply together in an orderly fashion. The role of a marketing intermediary is to recruit, hire, and retain people to help with flow functions. Unlike producers, however, marketing managers are often not tasked with gathering consumer information to help them design their products. Rather, their sole job is to recruit and retain people who can produce goods and services efficiently.
Marketing intermediaries make it possible for a company to perform marketing functions cheaper and faster than a producer would. Because intermediaries add costs and value to a product, they are required to be present along every channel of distribution. Which of the following statements about marketing intermediaries is false?? The correct answer depends on the specific circumstances of the situation. The following statements are true about marketing intermediaries:
As an intermediary, marketing intermediaries reduce the costs of personalized marketing by reducing the amount of work involved in the process. They include financial institutions, agents, wholesalers, retailers, marketing services agencies, logistics companies, and other entities. While the cost of a business transaction is lower, the costs of an agency or a distributor are higher. Moreover, a distributor or a broker doesn’t have the legal authority to act on behalf of a manufacturer or a company.
A distributor or a wholesaler owns the product and stores it, selling it to retailers and other intermediaries at a profit. A distributor of Coca Cola won’t distribute Pepsi products. A distributor of Pepsi products will not sell their product. A retailer maintains a closer relationship with its suppliers than a wholesaler. A retailer is a buyer who purchases products from a market intermediary.
The most important advantage of marketing intermediaries is that they help reduce the cost of personalized marketing. These intermediaries are usually very creative and open to new ideas. They can be very involved in a company’s marketing process and offer many services. They also have a professional approach to the business. In general, though, they are not a part of a manufacturing firm. They are not authorized to act on behalf of the manufacturer.
A retailer sells his or her product through a network of intermediaries. A wholesaler sells products and distributes them. The latter is a reseller. A retailer buys the product from the wholesaler. The seller then resells the product to consumers. The intermediary then sells it to the end users. This chain of distribution is known as a marketing channel. The products flow from the manufacturer to the distributor to the retailer.