Basics of Marketing - Kotler Philip

Marketing intermediaries

Marketing intermediaries ? These are firms that help the company to promote, market and distribute its products among the clientele. These include trade intermediaries, specialist firms in the organization of goods circulation, marketing services agencies and credit and financial institutions.

TRADING MEDIATORS . Resellers? These are business firms that help the company to look for customers and / or directly sell their products to them. Why do we need trading intermediaries for Schwinn? The answer is that the resellers can provide the convenience of space, time and procedure for purchasing goods to customers at a lower cost than Schwynn could have done. The convenience of the place is created by the resellers by accumulating the bicycle stocks in the locations of the customers themselves. The convenience of time is created by exhibiting and ensuring the availability of bicycles during periods when consumers want to buy them. The convenience of the acquisition procedure is the sale of goods with the simultaneous transfer of ownership. If Schwynn wanted to provide the aforementioned facilities on its own, it would have to finance, organize and operate a large system of outlets throughout the country. Therefore, the company considers it more reasonable to maintain cooperation with a system of independent trade intermediaries.

However, the choice of resellers and the organization of work with them? The task is not easy. Today, the manufacturer already deals not with many independent small intermediaries, but with large and constantly growing intermediary organizations. Increasingly, the number of bicycles is sold through the trading enterprises of large branded networks (such as Sears and K-Mart), through major wholesalers, retailers and establishments of holders of trade privileges. All these associations have great power and can dictate their terms, or even prevent the manufacturer from penetrating into some large-capacity markets. To win their product "place on the store shelf," manufacturers have to make a lot of efforts. And besides, the choice of trade intermediaries should be approached very carefully in the sense that by using certain channels of commodity circulation, you can lose the opportunity to use others.

FIRMS? SPECIALISTS ON ORGANIZATION OF COMMODITY . Company-specialists in the organization of commodity circulation help the company create stocks of its products and promote them from the place of production to the destination. Warehouses? These are enterprises that ensure the accumulation and preservation of goods on their way to their next destination. The number of transport firms includes railways, road transport organizations, airlines, freight water transport and other freight handlers moving goods from one place to another. The company needs to select the most economical shipping methods, balancing factors such as cost, volume and speed of deliveries, as well as the safety of goods.

AGENCIES FOR MARKETING SERVICES . Agency for the provision of marketing services? Marketing research firms, advertising agencies, advertising media organizations and marketing consulting firms? Help the company to more accurately target and promote its products in suitable markets for them. The company must decide whether it will use the services of these organizations or perform all necessary work independently. Having decided to use paid services, the company should carefully select providers of services, because specialized firms differ from each other both in terms of their creativity, quality of work, the volume of services provided, and prices. It is necessary to periodically evaluate the activities of these firms, thinking over options for replacing those whose work no longer satisfies the company.

CREDIT AND FINANCIAL INSTITUTIONS . Credit and financial institutions include banks, credit companies, insurance companies and other organizations that help the firm finance transactions and / or insure themselves against the risks associated with the purchase or sale of goods. Most companies and clients can not do without the help of financial institutions when financing their transactions. A significant impact on the effectiveness of the company's marketing activities can be provided by increasing the cost of credit and / or reducing credit opportunities. With this in mind, the company needs to establish strong ties with its most important credit and financial institutions.