THE ROLES OF MIDDLEMEN IN THE CHANNELS OF DISTRIBUTION
(A CASE STUDY OF TROPICAL VENTURE, ENUGU)
This project work titled the “Role of middlemen in channel of distribution” an important element in the marketing mix of any form, is the system of marketing channels through which products and services are distributed to the final consumers or ultimate users. A marketing channel is a loosely connected system comprising of a manufacturer, middlemen and the ultimate users. Wholesalers and retailers are the functional middlemen for manufacturers.
The writer described the problem under study and the relative importance of the study. There is also the destination of channels of distribution and that of middlemen who are involved in the distribution of goods and service to their place of use. It is seen here that channel of decisions is very vital to a form and to some extent determines the success of a product in its life time.
The functions of middlemen was also discussed below, their importance in Nigerian economy and also the problems associated with them.
Importance fund were signed not to enable conclusions and recommendation to be drawn. With light of finding, recommendations were made, that is instead of the middlemen being eliminated from the channels of distribution, their functions should be improved. However it is the research hope that if the recommendation made property implemental, the user will have a smile on their face.
TABLE OF CONTENT
Title page ii
Approval page iii
Table of content viii
1.0 Introduction 1
1.1 General background to the subject matter 1
1.2 Problems associated with the subject matter 3
1.3 Problem(s) that the study will be concerned with 5
1.4 The importance of studying the area 6
1.5 Definition of importance terms 7
2.0 Literature review 9
2.1 The origin of the subject area 9
2.2 Schools of thought within the subject area 13
2.3 The school of thought relevant to the problem of study 20
2.4 Different methods of studying the problem 22
2.5 Summary 24
3.0 Conclusion 26
3.1 Data Presentation [highlights of the study] 26
3.2 Analysis of the data 31
3.3 Recommendation 34
3.4 Conclusion 35
3.5 Reference 36
1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
A product may be in the world, but it will be of little use to the consumers, that is when these products cannot be seen where it is want. This is concerned with the place where the end users can acquire these good for use when the need arises.
Distribution simply means the flows of good from the producer to the end users through the channels of distribution, which is made up of middlemen,
Distribution of good and services has been an essential aspect of marketing in our lives. Though it was not recognized.
Distribution in 90’s is the most important link for acquiring good and services from the producers to the final consumers. Even with a soaring inflationary period which may break all records in the short history of Nigeria, distribution still is vital to the continued existence of business.
Producers, at their on set engage in distribution of their products. But when the demand for these products increased, they found that there was no enough time, energy and the expertise needed for effective distribution “Philip Kotler 1985 Pg.40” there came the need for expertise or middlemen in which tropical ventures engaged themselves in this come about due to the fact that producers are fully engaged in the production of goods to meet the increasing demand of goods and services.
As the economy continues to advance, retailer began to specialize. Since the retailers were unable to handle the distribution effectively, there come the wholesalers who now draw from a large number of producers. This was how middlemen came into the scene as link between producers and final consumers. As time goes on there come the need for agents distributors, brokers etc. springing into the chain of distribution.
1.2 PROBLEMS ASSOCIATED WITH THE SUBJECT MATTERS
Before the researcher says he went to research on this topic there are problems militating against the activities of middlemen. These problems are discussed below in the sub heading which are the problems.
1.2.0 NUMEROUS MIDDLEMEN: - In the chain of distribution, there are a lot of middle. These constitutes to the high prices charged on goods and services. These middlemen can neither be classified under the wholesaler nor the retailers.
1.2.1 UN-IDENTIFIED CHANNELS OF DISTRIBUTION: - Channel of distributions are too numerous to be identified when this is identified the unnecessary middlemen can be removed in between the identified channel.
1.2.2 PRICE INCREASE:- Buckman, & Czepriel S. marketing strategy Chicago American associated 1963 pg. 70 says that as soon as a wholesaler purchases a product from a producer, definitely he/she will add his/her own margin so also the retailers. When this addition of margin continues prices of goods and services can be increasing.
1.2.3 WRONG CHOICE OF CHANNEL: - Middlemen sometimes choose a wrong channel of distribution. This happens because they fail to firstly look at the nature of the product. Here, the nature of a product should be looked into before determining the channel to be used. For instance, perishable goods, this type of product may require direct distribution from the producer to the end users to recent them getting spoiled.
1.2.4 UN-NECESSARY CRITICISM: - Middlemen face a lot of criticisms. This should not be the case, the role they play should firstly be known any criticism should be mounted on them.