this presentation is prepared by Sharad singh on the topic Role of middlemen and inventories.

1. MARKETING MANAGEMENT
TOPICS
PREPARED BY
•ROLE OF MIDDLEMEN
1. SADAN NOUMANI
2. SHARAD SINGH
•ROLE AND IMPORTANCE
OF INVENTORIES

2. ROLE OF MIDDLEMEN
•INTRODUCTION
•FUNCTION
•TYPES
•IMPORTANCE

3. INTRODUCTION
 Middlemen provides a link between consumers and
producers.
 The role of middlemen in marketing is to act as a
intermediary or agent between two parties. A
middlemen can be a dealer ,agent or company who
deals with both the producers of goods and the
retailers/consumers.
 For example– wholesalers, agents, retailers and
brokers.

4. MIDDLEMEN AS A TRADER

5. FUNCTIONS
 The core function of middlemen is to be deliver goods to
the consumers when and where they want them.
 To achieve this ,they buy the products from the
producers ,store them as they search for viable markets
and then transport them to the consumers.
 In the process they assume any risks facing the goods for
instance ,theft perish ability and other potential hazards.
 In addition middlemen promote the goods to the
consumers on behalf of the producers.

6. OTHER FUNCTIONS
 Promotion— promoting the product in his territory is another
function that the middlemen perform. Many of them design their
own sales incentives programs aimed at building customer traffic at
their outlets.
 Price stability– maintaining price stability in the marketing is
another function a middlemen performs.
 Information– middlemen have a role in providing information
about the market to the manufacturer developments like changes in
customer’s demography, psychology, media habits and the entry of
new competitor or a new brand and changes in customer
preferences are some kind of information that all manufacturer
want.

7. Financing – Middlemen finance manufacturer’s
operations by providing the necessary working capital in
the form of advance payments for goods and services.
The payment is in advance even though credit may
be extended by the manufacturer, because it has to be
made even before the products are bought and consume
and paid for by the ultimate customer.
Since, these middlemen are close to the customer
and present in the market place they can provide this
information at no additional cost.

8. TYPES
 Wholesalers
 Retailers
 Agents and Brokers

9. Wholesalers and Agents
 Wholesalers and retailers are the two important types of middlemen
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forming a part of the distribution channels.
They act as an intermediary link between the manufacture and the
consumer of goods.
They reduce the amount of efforts required by the manufacturer in
distributing his product to the final consumers and provide a vast
market coverage to his products.
They provide ready delivery of goods to the consumer at places
convenient and accessible to them.
They also provide after sale services and handle consumer
grievances.
 They also act as a communication channel by providing
information about the products to the consumers, on one hand, and
the consumer feedback to the producers on the other hand.

10. Wholesalers and Agents
 Wholesalers and Agents are closer to the producers
Wholesalers buy the goods in bulk and sell them to the
retailers in large quantities.
 Retailers and brokers acquire the goods from the
wholesalers and sell them in small quantities to the
consumers.
 Retailers and brokers acquire the goods from the
wholesalers and sell them in small quantities to the
consumers.
 Wholesalers and Agents are closer to the producers
Wholesalers buy the goods in bulk and sell them to the
retailers in large quantities.

11. TYPES OF WHOLESALERS
 Merchant wholesalers– Independently own
businesses that take title to the merchandise they handle.
They are full service jobbers, distributer and mill supply
houses.
 Full service wholesalers– they carry stock, maintain
sales force, offer credit, make deliveries.
 Limited service wholesalers– cash & carry
wholesalers sale a limited line of fast moving goods to
small retailer for cash.
 Specialized wholesalers– agricultural assemblers,
petroleum bulk plants, auction companies.

12. TYPES OF RETAILERS
 Retailers are of different types depending upon there
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scale of operations and locations. They are broadly
classified into two categories
Small Scale Retailers-- Those retailers whose scale of
operations is restricted to a small segment of the market
and to a narrow range of products. They generally hold
small stocks of the products of regular use.
Small scale retail in India are-- Mobile traders etc.
Fixed shop retailers:- such as general stores, readymade
garment shop, sweet shop etc.
Large scale retailers– those retailers whose scale of
operation is extended to a small segment of the market.
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E.g. Supermarket, big bazaar , catalog showroom etc.

13. IMPORTANCE
 Middlemen are very important players in the market.
 Both the consumers and producers gain immensely from
the roles of middlemen who insures that there is a
seamless flow of goods in the market by matching supply
and demand.
 Middlemen provide feedback to the producers about the
market, thus influencing the decisions made by the
manufacturers.
 Buyers on the other hand ; gain from the services offered
by middlemen, such as promotion and delivery.
 buyers can get the right quantity they want; as
intermediaries are able to sale in small units.

14. EFFECT ON PRICE
 Regardless of the importance they play, there are
some disadvantages to having intermediaries in the
distribution channel. As the goods are exchanged
from one middlemen to the other, there prices
inflate. The rational behind higher prices is to cover
expenditures on the goods such as warehousing,
insurance and transportation costs.
 Intermediaries are also out to make profits hence
they have to include some profit markup in the sales.
Consumers then bear the price of having
intermediaries in the channel.

15. ROLE AND IMPORTANCE
OF
INVENTORIES
 INTRODUCTION
 TYPES
 ANALYZING
 IMPORTANCE

16. WHAT IS INVENTORY ?
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The raw materials, work-in-progress goods
and completely finished goods that are
considered to be the portion of a business’s
assets that are ready or will be ready for sale
stocked in order to meet an unexpected
demand or distribution in the future.
Inventory represents one of the most important
assets that most businesses possess,
because the turnover of inventory represents
one of the primary sources of revenue
generation and subsequent earnings for the
company’s shareholders/owners.

17. In any business organization, all functions
are interlinked and connected to each
other and are often overlapping. Some
key aspects like supply chain
management, logistics and inventory form
the backbone of the business delivery
function. Therefore these functions are
extremely important to marketing
managers as well as finance controllers.
 Inventory management is a very
important function that determines the
health of the supply chain as well as the
impacts the financial health of the
balance sheet.


18. From the above definition the following points
stand out with reference to inventory—
•All organizations engaged in production or scale of
products hold inventory in one form or other.
•Inventory can be in complete state or incomplete state.
•Inventory is held facilitate future consumption , sale or
further processing /value addition.
•All inventoried resources have economic value and can be
considered as assets of the organization.

19. INPUT
PROCESS
OUTPUT
Raw materials
Work in progress
Finished Goods
Consumables required for
processing. E.g. Fuel,
stationary, bolts & nuts etc.
required in manufacturing
Semi finished production
in various stages, lying
with various departments
like production, WIP
stores, final assembly,
paint shop, packing,
outbound Store etc.
Finished goods at
distribution centers
through out supply chain.
Maintenance
items/consumables
Production waste and
scrap
Finished Goods to transit
Packing materials
Rejections and Defectives
Finished goods with
stockiest and Dealers
Local purchased items
required for production
Spare parts stocks &
Bought out items
Defectives, Rejects and
Sales returns
Repaired stock and parts
Sales promotion & sample
stocks

20. 
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Ensure a continuous supply of raw materials and
supplies to facilitate uninterrupted production.
Maintain sufficient finished goods for smooth sales
operation and efficient customer service.
Reduce dependencies of one another and enable,
the organizations to schedule it’s operations
independently of another.
It helps to reduce material handling costs.
It helps to utilize people and equipment
reasonably.
It facilitate product display and service to
customers.

21. THANK YOU
UNDER GUIDENCE: DR. YASIR ARAFAT ELAHI SIR
PRESENTED BY: SHARAD SINGH
SADAN NOUMANI