Similarities and Differences in the Functions Performed By Intermediaries
The main function of the intermediaries in a marketing channel is to ensure that the products get to the end user. Different intermediaries perform varied roles to link the manufacturers to the markets. Therefore, the firs similarity in the functions of intermediaries is the delivery of products to the final consumer. Although some of the intermediaries such as the sales agents do not take ownership of the produce, their function aid in the delivery of the produce from the manufacturer to the consumer. Additionally, all the intermediaries play the roles of marketers in promoting the products (Rosenbloom 51).
On the other hand, the functions of different stakeholders within the marketing channel vary from one intermediary to another. The position of the intermediary determines their roles within the distribution channel, thus creating the variations. For instance, some intermediaries have the authority to set the prices and determine the final method of delivery. Distributors, retailers, and merchants have a level of product ownership that allows them to determine the market price of the products (Rosenbloom 86). On the other hand, agents do not make any profit from selling the products, but depend entirely on the commission offered by the manufacturers.
Functions Performed By Intermediaries
The main functions of intermediaries include transactional, logistical and facilitation. The distributers, wholesalers, and the merchants help with the transactional, logistical and the facilitation of the products from the manufacturer to the consumer. Retailers are also part of the transactional intermediaries because they take risks through the ownership of the products. The agents, facilitators, brokers, only function as facilitators because they do not store the products, nor decide the market price of the goods. The three functions enhance the process of service delivery in business (Rosenbloom 106).
Rosenbloom, Bert. Marketing Channels: a management view. Australia Mason, OH: South-Western Cengage Learning, 2013. Print.