Algor Cards

Intermediaries in the Distribution Network

Concept Map

Algorino

Edit available

Exploring the essential roles of intermediaries in the distribution network, this content delves into the functions and types of marketing intermediaries such as agents, brokers, wholesalers, distributors, and retailers. It highlights their importance in bridging the gap between producers and consumers, facilitating transactions, and ensuring products reach the market efficiently.

The Role of Intermediaries in the Distribution Network

In the distribution network, intermediaries are essential entities that bridge the gap between the production of goods and their consumption. They are responsible for a range of functions including the promotion, sale, and distribution of products to consumers. These intermediaries, also known as middlemen, are a fundamental part of the supply chain, ensuring that products are available to consumers in various locations. The evolution of digital technology has further broadened the scope of intermediaries, allowing them to operate on online platforms and thereby increasing the efficiency and scope of distribution channels.
Bustling farmers' market with fresh vegetables on display, vendor handing herbs to customer, other stalls and shoppers in sunny outdoor setting.

Types of Marketing Intermediaries

The distribution process involves four main types of marketing intermediaries: agents and brokers, wholesalers, distributors, and retailers. Each plays a specific role in the supply chain. Agents and brokers act as negotiators and deal-makers, typically earning a commission for their transactional services. Wholesalers buy goods in large quantities from producers and sell them to retailers or other intermediaries, focusing on the business-to-business market. Distributors maintain a close relationship with manufacturers and supply products to retailers or directly to end-users, often providing value-added services such as after-sales support. Retailers operate at the end of the supply chain, purchasing products from manufacturers or wholesalers and selling them to the final consumer, offering a variety of goods to meet diverse needs.

Show More

Want to create maps from your material?

Enter text, upload a photo, or audio to Algor. In a few seconds, Algorino will transform it into a conceptual map, summary, and much more!

Learn with Algor Education flashcards

Click on each Card to learn more about the topic

00

The advancement of ______ technology has expanded the capabilities of intermediaries, enabling them to work on ______ platforms.

digital

online

01

Role of Agents and Brokers

Negotiate deals, earn commission, don't own goods.

02

Function of Wholesalers

Buy in bulk, sell to retailers/intermediaries, focus on B2B.

Q&A

Here's a list of frequently asked questions on this topic

Can't find what you were looking for?

Search for a topic by entering a phrase or keyword