Good & Bad of Relying on Marketing Intermediaries
Whereas the far and wide progressive marketing companies have begun developing a value network system to get directly products in the hands of consumers, but in Pakistan dependency on intermediaries are getting higher. Companies are heavily relying on a host of marketing intermediaries, enslaving themselves to this third party power. Besides compromising their core brands’ value, risking product/services quality lose and their consumers ended up paying an additional cost.
In Pakistan majority producers do not offer their products and services directly to final consumers. Between companies and end consumers there is a tall presence of marketing channels, a host of marketing intermediaries performing a variety of activities, keeping their financial vested interests? The idea is not to avail services of these marketing intermediaries, agents and facilatators, but heavely relying on their capability to deliver brand promise to craft brand value is a questionable process. Most of the local and foreign companies operating in Pakistan either not fully focussed or deliberating joined bandwagen to adopt slack marketing channel decisions, which are among the most critical decisions facing management because the company’s chosen channel(s) profoundly affect all other marketing decisions.
It is common practise that companies use intermediaries when they lack the financial resources to carry out direct marketing, when direct marketing is not feasible, and when they can earn more by doing so. The most important functions performed by intermediaries are information, promotion, negotiation, ordering, financing, risk taking, physical possession, payment, and title. But in Pakistan there is flip effect, companies even a reasonable resources are shifting burden to marketing intermediaries because of companies’ lack of businesses seriousness. One example, which I always consider a big mistake, is not having marketing department to market their brands.
Manufacturers have many alternatives for reaching a market. They can sell direct or use one-, two-, or three-level channels. Deciding which type(s) of channel to use calls for analysing customer needs, establishing channel objectives, and identifying and evaluating the major alternatives, can be better operative if it can opt for direct sell.
A value network is one big misunderstanding for Pakistani companies. They are only focused on financial value, ignoring companies’ suppliers, their suppliers’ suppliers, their immediate customers, and their end customers. It is utmost necessary that they should identify their and set up a value network for the company by compare and contrast the components of the value system to a competitor. To be success in the market companies should identify the components of the value network that produced the augmented offering.