Explain the role of the four different intermediaries.

Question

What will be an ideal response?

Answer 1

Intermediaries are those units or institutions in the channel of distribution that either take title to or negotiate the sale of the product. The usual intermediaries are brokers, agents, wholesalers, and retailers.
A broker, for a fee, brings a buyer and seller together to negotiate purchases or sales but does not take title to, or possession of, the goods. The broker has only limited authority to set prices and terms of sale. Firms using brokers usually buy and/or sell highly specialized goods and seasonal products not requiring constant distribution, such as strawberries or crude oil. Canned goods, frozen-food items, petroleum products, and household specialty products are also often distributed through brokers.
Because brokers operate on a one-time basis to bring buyers and sellers together, a small business that wants a more permanent distribution channel may use an agent to perform the marketing function. These agents, who market a product to others for a fee, are variously called manufacturers' agents, selling agents, or sales representatives (reps), depending on the industry.
Wholesalers take actual physical possession of goods and then market them to retailers, other channel members, or industrial users. They maintain a sales force and provide services such as storage, delivery, credit to the buyer, product servicing, and sales promotion.
Retailers sell goods and services directly to ultimate consumers. They may sell through store outlets, by mail order, or by means of home sales. Included in this category are services rendered in the home, such as installing draperies and repairing appliances.