What are Marketing Intermediaries?

Subject: Marketing
Pages: 2
Words: 433
Reading time:
2 min

Marketing intermediaries are independent companies that help other corporations in the promotion, marketing, and distribution of their products to the consumers. These include distributors, product brokers (agents), marketing agencies, logistics firms, and financial institutions. Some types of marketing intermediaries are given down below.


Intermediaries, such as distributors, are wholesale and retail sellers conducting operations on behalf of manufacturers and at their own expense. The manufacturer provides the distributor with the right to trade their products in a particular territory and for a specific time. The distributor is not the owner of the merchandise unless, under the contract, he acquires the right to sell it.

Product brokers are usually intermediaries at the making of deals and transactions and bringing counterparties. Brokers are not owners of products, and they do not utilize the products. They act based on instructions and facilitate the trade; remuneration is received only for products sold.

Logistics companies are organizations that provide their customers with storage and transportation services that ensure the delivery of goods from the place of manufacture to the point of sale. Collaborating with companies involved in the storage and transportation of products, the company must find the best ways to store and move the goods, achieving a balance between factors such as cost, speed, and reliability of delivery. These organizations ensure the delivery of products from the place of manufacture to the point of sale.

Marketing agencies are marketing research companies, advertising agencies, consulting firms, and other organizations helping the company to promote its products and services in target markets. When choosing a marketing agency, companies should be careful because these companies differ in their creative approach, the level of quality, service, and prices. The company must continuously monitor the effectiveness of the marketing agency and, if necessary, refuse its services.

Financial intermediaries are banks, credit, and insurance companies, as well as other organizations that help in financing the company’s activities or insure it against risks associated with the purchase and sale of goods. Most companies and their customers depend on financial intermediaries since the cost of credit or the limitation of their size can seriously affect the effectiveness of the company’s marketing activities.

The use of intermediaries in the business field is beneficial, especially for manufacturers. In this case, they have to deal with a limited circle of interested parties in the sale of products. Besides, the full availability of goods is ensured when moving directly to the market. With the help of intermediaries, it is possible to reduce the number of direct contacts between manufacturers and consumers.