Question

why is an intermediary required in the process of marketing a good?

Answer 1

While the retail channel is most familiar to students, wholesalers play an important role as intermediaries. Intermediaries act as a link in the distribution process, but the roles they fill are broader than simply connecting the different channel partners. Wholesalers, often called “merchant wholesalers,” help move goods between producers and retailers.

For example, McLane Company Inc. is among the largest wholesalers in the United States. The breadth of its operations is described on the company Web site:

Answer 2

The intermediates bridge the gap between the point of production and the point of sales.  

Explanation:

• Intermediates add value to the distribution channel by bringing market linkages and consumer contacts. They involve the logistical distribution of goods which includes breaking up the bulk production of the manufacturer into smaller portions and transportation.
• These people ensure market coverage, reduce the cost of the former and also increase the availability of cash flow in a systematic manner.
• It brings specialization, market knowledge thereby enabling the marketers to implement their strategies effectively by selling skills. They are helpful in small scale products.