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According to Business Dictionary, the four basic types of marketing intermediaries are agents, wholesalers, distributors and retailers. Agents: The agent as a marketing Intermediary Is an Independent Individual or company whose mall function Is to act as the primary selling arm of the producer and represent the producer to users. Agents take possession of products but do not actually own them. Agents usually make profits from commissions or fees paid for the services they provide to the producer and users. Wholesalers: Wholesalers are independently owned firms that take title to the merchandise they handle.
In other words, the wholesalers own the products they sell. Wholesalers purchase product in bulk and store it until they can resell It. Wholesalers generally sell the products they have purchased to other Intermediaries, usually retailers, for a profit. Distributors: Distributors are similar to wholesalers, but with one key difference. Wholesalers will carry a variety of competing products, for instance Pepsi and Coke products, whereas distributors only carry complementary product lines, either Pepsi or Coke products. Distributors usually maintain close relationships with their suppliers and customers.
Distributors will take title to products and store them until they are sold. Retailers: A retailer takes title to, or purchases, products from other market intermediaries. Retailers can be independently owned and operated, like small “mom and pop” stores, or they can be part of a large chain, Like Walter. The retailer will sell the products It has purchased directly to the end user for a profit. Market decision All marketers, retailers must prepare marketing plans that include decisions on 1 OFF atmosphere, price, promotion, and place.
These decisions must take into account major trends, such as the growth of private labels, new retail forms and ambitions, growth of interpret retail competition, competition between store- based and non-store based retailing, growth of giant retailers, decline of middle market retailers, growing investment in technology, and the global presence of major retailers. Trend Many factors influence retail trends; these factors are linked to current changes in the population, including the increase in reliance on social media and concern for the environment.
Retailers are wise to adapt to the way consumers prefer to shop, while using social media in creative ways to market products to target audiences. With the increase in online shopping, retailers are responding by creating user- friendly websites and providing discounts on shipping. Environmental Awareness: The rise in environmental awareness has caused some retailers to respond in ways that make consumers feel better about their purchases. Many retailers are increasingly offering products made with recycled materials.
Increase in Senior Population: The senior population is growing; this factor is influencing retail trends. Retailers are marketing to seniors in a variety of ways, which is wise because nearly 22 percent of the American population will be aged 60 and over by 2030. Seniors, in particular, appreciate great customer service and websites that are user-friendly. Seniors also tend to appreciate high-quality goods, and retailers are responding by keeping these items stocked.
Social Media: The all-reaching influence of social media is affecting retail trends, as social media sites provide a convenient way for retailers to reach target audiences. Retailers are increasingly turning to social media sites such as Twitter or Faceable to advertise sales, free shipping and new product lines. Although newspaper flyers and other traditional means of advertising still reach nonusers, advertising on social media sites is comparatively easy and inexpensive.
Online Shopping: Online shopping hasn’t yet made shopping malls and storefronts obsolete, but it has had an impact on how retailers sell products. Of course, many retailers operate websites on which consumers can purchase products. However, online retailers are increasingly adding customer support to their websites in the form of online chat. Additionally, online retailers frequently offer customer’s ways to track past purchases and shipping, while making recommendations based on past purchases. Future hold Private label has experienced considerable growth in the last decade, both in size and scope.