How do intermediaries add value to a marketing systemSolutio

How do intermediaries add value to a marketing system?

Solution

A producer can bypass an intermediary by elimination or substitution, but the tasks performed by the intermediary cannot be eliminated.

Intermediaries stem from the core economics of supply-chain management: market coverage, customer contacts, lower costs, systematic cash flow etc. The intermediary add value to the marketing of the product by bringing in specialization, marketing knowledge, capacity to segment the market and selling skills that allow the marketer to implement marketing strategies effectively.

Intermediaries providing logistic support increase convenience to both the producer and the consumer by offering effective delivery and pre and post purchase customer service as well as facilitating manufacturer services, making them indispensable to most mid and small-scale producers.