Various kinds of Middlemen in Distribution Channel

Middlemen participating in the channel function

The distribution channel starts with the producer and ends with the consumer. In between, there are many intermediaries or middlemen. These middlemen are of two types, namely,

  1. Merchant middlemen and
  2. Agent middlemen.

A merchant middleman is one who takes title to the goods and later carries out sales. An agent middleman, on the other hand, does not take title to goods. He simply gets orders from the buyers and passes on the same to the producers.

Kinds of Middlemen in Distribution Channel

Kinds of Middlemen in Distribution Channel

Kinds of Middlemen in Distribution Channel

The various kinds of middlemen in the market are:

1. Wholesalers: They are the people who buy in bulk from the producers and sell in small quantities to the retailers.

2. Retailers: They are the people who buy in small quantities from the wholesalers and sell to the ultimate consumers.

3. Agents: They are the middlemen who do not take any title to goods. They render all services required in marketing. They represent either the seller or the buyer. They receive commission for their work.

4. Brokers: Like agents, brokers also represent either the buyer or the seller. They do not usually have physical control over the goods in which they deal. Example: share brokers. They get ‘brokerage’ for their work.

5. Dealers: They are the business houses that resell goods. Example: Viveks, Vasanth & Co. and so on.

6. Distributors: They are the same as wholesalers.

7. Jobbers: They are associated with stock exchanges. A jobber deals in certain securities. He transacts only with a broker and does not deal directly with the public.

8. Branches: These are establishments maintained by manufacturers at different places to promote sales. Example: Bata Shoe company.

9. Consumer Co-operatives: These are owned and managed by the ultimate consumers. Such cooperatives buy and distribute goods mainly to the members.

10. Company show room: A company may run its own show room to sell its goods. Example: Philips, BPL and Thomson have their own showrooms in Chennai.

11. Facilitating Agencies: These agencies are directly or indirectly involved in the performance of certain marketing functions. These are transport organizations, warehouses, banks, insurance companies and so on

Leave a Reply




Recent Posts


Related pages


meaning of requisiteswhat are the characteristics of a capitalist economydifference between void and voidable contractwhich of the following is a disadvantage of decentralizationwhat is amalgamated companyexplain urbanisationdefine socialism in economicsasset utilization ratios are used to measuredefine legal personalitydefinition of salesmanmatrix organizational structure disadvantagesshort informal report exampledisadvantages of dictatorshipadvantages of a mixed economymarginal costing systemadvantages sole tradermeaning of amalgationessentials of valid considerationbudjectingdistinguish between standard costing and budgetary controlconsumers sovereigntythe payback methodconsumerism defintionsalesperson performance evaluationimportance of middlemenultre viresdefinition overheadsdebtors collection period definitionprocess of mbo management by objectivesdefine budgetary controlfutures vs forward contractsdifference between shares and debentures and bondsvoid contract and voidable contractultra vires actsmixed economy definition economicscaste structure in indiaadvantages and disadvantages of registration of partnership firmdirect costing and absorption costinginventory turnover formula in daysauthoritarian leadership style in nursingtaylorism and scientific managementdefine disturbance handlerhow to calculate direct materials costproduct costing system definitionprivity definitionquota sampling examplefactory overhead expenses listcardamom boardnon probability random samplingforward contract vs futures contractimportance of bin cardactivity based costing managerial accountingamalgamation vs mergerdisadvantages of socialist economyadvantages and disadvantages of a mixed economyadvantages of agglomerationdeductive or inductivetypes of perilsmeaning of alpha numericcompute inventory turnovercentralisation and decentralisation of authorityadvantages and disadvantages of e commerce for businessesformula of quick ratiowhat is the purpose of managerial accountingretail franchising definitionnabard establishedbailor baileemarket fluctuation definitionadvantages and disadvantages capitalismmeaning of assignee in insurancedecentralizing definitiondefine audit programme