why it is that the advertising agency act as a middle player
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create valuable exchanges between consumers and producers. The market consists of those consumers who are willing and able to purchase products, hence creating exchanges that satisfy both parties. Middlemen, also referred to as intermediaries, play a vital part in ensuring that the distribution channel between the producer and the consumer is complete. The more intermediaries there are in the supply chain, the higher the distribution channel.
Explanation:
Types of Middlemen
Examples of middlemen include wholesalers, retailers, agents and brokers. Wholesalers and agents are closer to the producers. Wholesalers buy goods in bulk and sell them to the retailers in large quantities. Retailers and brokers acquire the goods from the wholesalers and sell them in small quantities to the consumers.
Consumers may also choose to bypass the intermediaries and buy goods directly from the producers. This is referred to as disintermediation.
Roles of Middlemen
The core function of intermediaries is to deliver goods to the consumers when and where they want them. To achieve this, they buy the products from the producers, store them as they search for viable markets, and then transport them to the consumers. In the process, they assume any risks facing the goods – for instance, theft, perishability and other potential hazards. In addition, middlemen promote the goods to the consumers on behalf of the producers.
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A primary role of an advertising agency is the creation of an advertising and marketing plan specific to your business, product and brand. Ad agencies work with your business objectives, keep within ad budgets and develop advertising and marketing campaigns to satisfy a business' needs.
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