Answer to Question #265070 in Marketing for Umar

Question

Through distribution, producer’s (manufacture’s) product can pass to a wholesaler, then to a retailer before finally reaching a consumer. Alternatively, it may go first to a retailer finally to reach a consumer. In these cases, there are intermediaries between the producer and the finally consumer. However, the producer can sell directly to the final consumer. In this case, there is no an intermediary. The intermediaries may be short or long. It is long, for instance, when the product passes through an agent, a wholesaler, retailer, and short when it only passes through a retailer to reach a consumer. Intermediaries, such as retailers and wholesalers, tend to add efficiency because they can do specialized tasks better than the consumer or the manufacturer. Using the case study, Describe the two classifications of distribution channel and show how Intermediaries add efficiency to the system.

Answer 1

The term “distribution channel” refers to the methods used by a company to deliver its products or services to the end consumer. It often involves a network of intermediary businesses such as manufacturers, wholesalers, and retailers. Intermediaries create a win-win situation by providing benefits to both manufacturers and consumers. Improving efficiency, allowing for a better assortment of products and routinization of transactions makes the process easier and the customer experience more positive .Two main types of marketing intermediaries are wholesalers and retailers. Wholesalers sell primarily to retailers, to other wholesalers, and to organizational users such as government agencies, institutions, and commercial operations.