1Developing a Channel Strategy, CBSNews.com, http://www.cbsnews.com/8301-505125_162-51168339/developing-a-channel-strategy/?tag=mncol;lst;1 (accessed April 13, 2012). Financial intermediary - Wikipedia Drop shippers do not carry inventory or handle the merchandise. Explain why marketing channel decisions can result in the success or failure of products. Lancaster G. and Frank Withey, Marketing Fundamentals (Burlington, MA: Butterworth-Heinemann, 2007), 173. Did you know that people can also act as intermediaries? Questions and Answers for [Solved] Marketing intermediaries: A)are unlikely to survive in a competitive global economy. Without intermediaries, it would be much more difficult for manufacturers and customers to find the right products quickly and efficiently. And some software-as-a-service firms provide those functions on a stand-alone basis, which lets a restaurant offer the convenience of online ordering at a much lower price. Some wholesalers carry a wide range of different products. Both agents and brokers are paid ___ for a sale or transaction that they have mediated. They are mistaken. And by structuring contracts to avoid any single day of reckoning, the intermediary can prevent a group of companies from recognizing their mutual interest in finding a cheaper alternative. In less-developed countries, wholesalers are often the sole or primary means of trade; they are the main elements in the distribution systems of many countries in Latin America, East Asia, and Africa. 2. 80 percent of the business comes from 20 percent of the customers. By all indications, American didnt pay Kayak a penny. They help carriers spread the risks in their portfolios Thus they can make a modest investment yet enjoy profits disproportionate to those of suppliers, who hold inventory, produce products, and actually do the work. Their collaboration blocked MovieTickets expansionindeed, Fandango ultimately surpassed MovieTickets in size. even though a firm is showing a profit, 80 percent of its business might be coming from only 20 percent of its customers. Specialty stores vary by size. solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer. The category includes both full-service wholesalers and limited-service wholesalers. They're called intermediaries because they're in the middle of a series of organizations that join together to help distribute goods from . In other words, they have some sort of capabilities the producer needs: contact with many customers or the right customers, marketing expertise, shipping and handling capabilities, and the ability to lend the producer credit are among the types of help a firm can get by utilizing a channel partner. Best Buy is a category killer in the electronics-product market. They might not offer delivery services, extend their customers credit, or have sales forces that actively call sellers.
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