Topic:-Discuss the Role and function of intermediaries in channel management. Discuss with an industry example.

By:-

Akbar Kamal Anil Kasana Aakash Tiwari Kumar Vivek Arjun Vishwanath

Roles & Functions of Intermediaries..

Roles: Exchange Facilitators Bulk Breakers.

Example:- Service Industry

Service industry also termed as tertiary sector of industry, having 15 subcategories. Two distinct services marketers are involved in delivering service through intermediaries: -The service principal - is the entity that creates the service concept. -The service deliverer - is the entity that interacts with the customer in the actual execution of the service.

DIRECT OR COMPANY OWNED CHANNELS

Benefits: Complete control over outlets Allows the company to expand or contract sites without being bound by contractual agreements Company owns the customer relationship Disadvantages: Financial risk Not aware of all the markets
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TYPES OF INTERMEDIARIES

Franchising

Agents and Brokers

Electronic channels

FRANCHISING
For Franchisers Benefits: Leveraged business format for greater expansion and revenues Consistency in outlets Knowledge of local markets Shared financial risk and more working capital Challenges: Difficulty in maintaining and motivating franchisees Highly publicized disputes and conflict Inconsistent quality Control of customer relationship by intermediary
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FRANCHISING [contd..]
For Franchisees Benefits: An established business format National or regional brand marketing Minimized risk of starting a business
Challenges: Encroachment Disappointing profits and revenues Lack of perceived control over operations High fees
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AGENTS AND BROKERS

Benefits: Reduced selling and distribution costs Intermediary's possession of special skills and knowledge Wide representation Knowledge of local markets Customer choice
Challenges: Loss of control over pricing Representation of multiple service principals
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ELECTRONIC CHANNELS
Benefits: Consistent delivery for standardized services Low cost Customer convenience Wide distribution Customer choice and ability to customize Quick customer feedback Challenges: Price competition Inability to customize with highly standardized services Lack of consistency due to customer involvement Changes in consumer behavior Security concerns Completion from widening geographies

COMMON ISSUES INVOLVING INTERMEDIARIES

Channel conflict over objectives & performance

Difficulty controlling quality & consistency across outlets Tension between empowerment & control Channel ambiguity
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STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES

Control strategies Empowerment strategies

Partnering strategies

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