Manufacturers quite often see intermediaries as parasites rather than assets. The disadvantages of using an intermediary stem from psychological apprehensions, market antecedents which have created such apprehensions, and lack of managerial skills or resources that are sufficient to balance and manage the intermediary.
How do intermediaries affect a business?
Intermediaries generally have a keen awareness of the consumer market and insight into establishing customer relationships. Marketing intermediaries work to promote the product through marketing channels, which builds customer relationships and ultimately increases brand loyalty and awareness.
Why would a company choose to work through intermediaries?
Answer: It is a way of reducing the risk and cost of operating in a foreign country. They will avoid hassles involved in international distribution and would not need to develop distribution networks. Companies often use local intermediaries when they want to sell products and run operations in a foreign country.
What are the disadvantages of selling through an intermediary?
Arrangements must be made to allow access to your sales ledger as part of the commission payments process. After-sales service can be difficult when selling through an intermediary. You may lose some control over marketing and brand image, compared with entering the market yourself.
What are the pros and cons of influencer marketing?
Regardless of the social media platform you choose, influencers can help you add new potential customers to your basket. Consumers today consider influencers as people they can trust, and they really value the opinions of the influencers they follow. Influencers often post questions and engage their followers to forge friend-like relationships.
What are the disadvantages of using commercial agents?
Local experience – some markets, including overseas markets, are difficult to break into without existing contacts, local knowledge and experience. Some of the downside of using commercial agents are: Control – it can be difficult to control the agent’s activities and to make sure they continually work hard on your behalf.
What are the pros and cons of network marketing?
End users are only loyal to the lowest possible price that is available. With specialization in place, this issue may not always be eliminated, but it does give end users a point of contact with the organization and this can become the foundation of a relationship. Eric Worre – Why Network Marketing?
