Task: The production manager at my company argued at yesterday's staff meeting that wholesaling intermediaries or "middlemen" simply increase the cost of products and that is whey company sales are lower. What would I tell the Production Manager? Is there any benefit from marketing intermediaries? Where are my choices?
Problem 1: The marketing intermediaries are primarily useful for the government. He intermediaries are responsible for administering the tax and inspection programs imposed by the Federal Trade Commission.
Problem 2: Marketing intermediaries add efficiency to the distribution of products by reducing the number of buyers seller transaction required to satisfy the buyer's needs.
Problem 3: Marketing intermediaries conduct the product development function. Although this may be expensive companies benefit by having a steady flow of new product ideas
Problem 4: The primary benefit involves supporting foreign marketing operations in the domestic market; however, market intermediaries are really not necessary and tend to just add another layer of administration between the producer and the buyer.