Role of Intermediaries in distribution process

Cards (6)

  • They are finding and locating buyers on behalf of the producer, as well as help promote the product
  • Intermediaries are specialists in selling, so the producer may be able to reach a wider audience
  • Manufacturers achieve greater sales by using intermediaries
  • The producer may not have the expertise or resources necessary to sell directly to the public
  • The intermediary may be able to provide more efficient distribution logistics. (transporting to various points of sale)
  • Overall distribution costs may be lower using an intermediary that if the business undertook distribution itself, even with the intermediary's commission.