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Intermediaries Market intermediaries are an important factor in the way that products and services are distributed today Marketing intermediaries are organizations that assist in moving goods and services from producers to industrial and consumer users Theyre called intermediaries because theyre organizations in the middle of a whole series of organizations that join together to help distribute goods from producers to consumers Marketing intermediaries have always been viewed by the public with some suspicion People reason that if we could only get rid of intermediaries we could greatly reduce the cost of everything we buy Well the lets imagine for a minute that we have eliminated intermediaries and have to go shopping for groceries and shoes First of all you would have to find out exactly where the products you need are manufactured or where there nearest wholesaler is The easiest way to do this would either be call the company or check it out on the Internet Once you have acquired the location of your products you need to transport yourself there most of the time that means driving So now imagine for groceries you need Lucky Charms cereal and Golden Guernsey milk and for shoes you want the new Air Jordans from Nike Youve found that your milk is in your town your cereal is in Milwaukee and your shoes are found near Chicago So you drive the couple minutes to the get the milk then you drive a little over two hours to get to the cereal in Milwaukee Then you drive another two hours to get your shoes lastly you drive another three hours to get back home Now is all that gas time and effort really worth it No of course not because you just spent more money on gas getting to your product then you would have if the producer had just paid an intermediary to bring the product to your town Although the price of a product does go
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