Merchant middlemen are referred to as pure marketing organizations. They perform all the marketing activities discussed below. The agent middlemen only perform the auxiliary functions allocated to them by their clients.
Merchant middlemen are buyers of goods produced by different producers. They have a list of all manufacturers and producers of the goods they deal in. They are familiar with terms of trade.
They carry out the actual purchases with their own money. They, therefore, bear all the business risks surrounding the sale of each of the products handled.
2. Contacting, Sorting, Allocating, and Assisting
Middlemen gather different goods into their stores for consumers to buy, easily. This allows consumers to buy goods in smaller quantities, at convenient periods.
Middlemen help in creating awareness for the products they sell and stimulating demand for such products. They, sometimes, sell some brands of products in their names. They help small and financially weak producers to promote their products; they often employ their salesmen and advertise the products they deal in.
To stock goods in one store, middlemen rent or build big warehouses to store goods of different manufacturers. This allows consumers to make selections from various goods available in the warehouse.
Read Also: Middlemen and Marketing Activities
Middlemen have their vehicles which they use to move goods purchased to their warehouse.
Middlemen buy their goods in bulk and make payments to enable producers to carry on further production.
7. Channel of Communication
Middleman serves as a link between manufacturers and consumers in communicating their complaints, products, needs, and social responsibilities expected of them.
8. Market Research
Middlemen carry out market research on their business activities and environment. This involves gathering business data, analyzing and making inferences for either improvement or production of new products.
In conclusion, middlemen balance the expectations of producers and the wants of consumers through activities of concentration, equalization, and dispersion. They aid, considerably, in creating time, place, and possession utilities.
It is important to note that you may eliminate middlemen, but you cannot eliminate their functions.
Read Also: Factors Influencing Promotion Mix
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