Channel intermediaries link producers to other intermediaries or the ultimate buyer. They promote, sell and make available products and services through contractual arrangements or purchase and resale of the item. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until the item reaches the final buyer.
Different Marketing Channel Intermediaries
- An independent individual or company
- Primary selling arm of the producer and representing the producer to users.
- Agents take possession of products, but do not own them.
- Make profit from commissions or fees paid for the services they provide to the producer and users.
- Independent firms that take title to the merchandise they handle.
- Own the products they sell.
- Purchase product in bulk, store it until they can resell it.
- Generally sell the products they purchased to other intermediaries, usually retailers for a profit.
- Distributors only carry complementary product lines (Pepsi or Coke)
- Usually maintain close relationship with suppliers and customers.
- Take title to products and store them until they are sold.
- A retailer takes title or purchases products from other intermediaries.
- Retailers can be independently owned small shops or part of a large chain.
- Sell products to end users for a profit.