Middlemen and Marketing Activities

Goods and services are produced by manufacturers both within and outside the country. These goods and services produced are readily made available to the target consumers irrespective of time, space, and place of the consumers.

This is made possible through the services rendered by some specialized agents. These agents are so important to both the manufacturers and to the consumers. They are often referred to as ‘middlemen’.

A middleman is an independent business concern that operates as a link between producers and ultimate consumers or industrial users.

A middleman renders services in addition to the purchase and /or sale of products by moving the goods to consumers from the manufacturers.

A middleman either takes title to the merchandise as it flows from producer to consumer or actively aids in the transfer of ownership.

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The essence of middlemen in marketing activities is their active participation and promotional role in negotiations involving buying and selling of goods. This unit examines the importance of middlemen in marketing activities.


A middleman is an independent business concern/entity that operates as a link between producers and ultimate consumers or industrial users. Outside purchasing and sales of goods, middlemen also ensure the transfer of goods and titles to goods to end users. Middlemen either take title to the goods or actively aid in the transfer of ownership.

Middlemen are commonly classified based on whether or not they take title to the goods sold. Thus, they are classified as merchant and agent middlemen. Merchant middlemen (actually) take title to the goods they market.

While agent middlemen never own the goods but do actively assist in the transfer of title. Brokers and manufacturers are examples of agent middlemen; while wholesalers and retailers are examples of merchant middlemen. Now, before you proceed further, do attempt this exercise.

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