Question

3. Name the various kinds of middlemen and discuss the functions, advantages, and disadvantages of them.

Answer 1

There are three types of middlemen that facilitate the flow of goods and services from the manufacturer to the customer.

Merchant Middlemen

These are the intermediaries who take title to the goods and services and resell them. We know them as dealers, wholesalers and retailers..

Agents-

These are those intermediaries who do not take title to the goods and services but help in identifying potential customers and even help in negotiations. The typical example is that of C&F agents, brokers, jobbers, etc. who act on behalf of the producer only to the limited extent of prospecting, warehousing and redistributing the products. They do not share risk with the manufacturers as they do not take the title to goods and services.

Facilitators;

These are independent business units that facilitate the flow of goods and services from the producer to the customer without taking a title to them or negotiating for them on behalf of the producer. Transport companies, banks and independent warehouses are an example of these institutions.

FUNCTIONS :-

1. Middlemen are the furnishers of valuable information to the producers about consumer behaviour, the changes in tastes and fashions, etc.

2. Middlemen allow the manufacturers to concentrate on production only and relieve them from the botheration of marketing.

3. Middlemen render financial help to manufacturers.

4. They make available the goods according to the consumers’ needs, fashion, tastes, etc.

5. Middlemen are an important link between the producers and consumers.

DISADVANTAGES OF MIDDLE MEN

#Revenue loss.

#Loss of Communication Control.

#Loss of Product Importance.

ADVANTAGES OF MIDDLEMEN

Middlemen are the furnishers of valuable information to the producers about consumer behaviour, the changes in tastes and fashions, etc. ... They make available the goods according to the consumers' needs, fashion, tastes, etc. 5. Middlemen are an important link between the producers and consumers.