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Product, place/market where available, price, manufacturer, quality and quantity. Producer's reputation goes long way in assisting customer make up his mind to buy the item. Customer will be ready to pay higher price for reputed producer's product than to one produced by unknown producer, although quality may be better than former's. Intermediary advertises about product and offers that he is making on purchase of it to buyers.

Advertising is means of communication persuading audience to continue purchasing same product or try new one. Messages are normally sponsored and viewed on TV, Radio, Magazines, or these days through direct mails, blogs, websites or text messages. Intermediary arranges for all these amenities leaving manufacturer concentrate on production.

A) Give three exs when advertising to intermediaries might be essential? prepare down the objective(s) of such advertising? In first resources of intermediaries are channelized in setting up marketing linkages and contacts with customers. Intermediaries either themselves carry out this role or employ service of specialized agencies particularly in case of highly sophisticated technical items.

B) Logistical: It is very important role in keeping price level by helping producer keep low inventory and distributing finished products fast. It is physical distribution of product after sorting and storing and making available to final consumer when required. It allows the producer use empty space for any more useful alternative use, and avoids blocking of enormous funds in inventory and storing finished goods.

C) Facilitating: Intermediary arranges for storage and renders financial support to marketing chain. He further aids purchasers buy in instalments.
Together, these functions carried out by intermediary make sure market coverage, decrease cost of market coverage, increase availability of cash flow in distribution channel, and increase end-user convenience. Producer can bypass the intermediary by elimination or substitution, but tasks carried out by intermediary can't be eliminated.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M934242

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