Intermediaries - who are they? Trade intermediaries. Financial intermediaries

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The word "intermediary" appeared in the circulation of ordinary citizens relatively recently - even in the relatively near Soviet times, people with this type of activity were practically absent. It is understandable - the economy was planned, and no one cared about the effectiveness of sales. Today, however, we live in capitalism, and commercial intermediaries, for a number of reasons, play the role of almost the locomotive of the economy.

Who are they and their diversity

There are several interpretations of the term "intermediary". The first concerns the processes associated with the circulation of goods and the provision of services. In most cases, there is a layer of actors between the producers of value-added products or services and the end consumer. They are intermediaries. The second interpretation of the term is a person who helps to establish links between various business entities (not necessarily a manufacturer and consumer), counterparties. One way or another, intermediaries of all types have one thing in common - for some reason they know that in one place there is a manufacturer of goods, and in another there is (or should be) a buyer who is eager to purchase this product.

So, a person acts as a "guide"goods between the factory and the consumer. Intermediaries are people who can perform not only trading functions, but also some others, for example, provide the client with an additional service, the level of which, for one reason or another, is not available to the manufacturer. It is elementary to meet the buyer and communicate politely with him, explaining the benefits of the product. Intermediaries in the market, in business are not speculators at all: they only fill with their activities a niche (trade and service) between the manufacturer and the purchaser of the goods. It is profitable to work with them for an obvious reason - a person works for a percentage and is interested in selling as much as possible.

Representatives of this speci alty in trade

There is a separate category - resellers, despite the fact that almost the entire volume of services of people of this profile is somehow concentrated around sales. The key criterion that determines the direction of their work is the availability of a product or service with an established (added) value. In this way, such intermediaries differ from, say, financial brokers who work with "virtual" prices for currency or raw materials formed by the exchange. The main task that resellers perform is communication between the manufacturer of the goods and the buyer.

These people earn in two ways - by buying goods in bulk, which is cheaper, and then selling at retail, which is much more expensive, or by receiving commissions for selling the product. What are some examples of specific types of professions related to commercial intermediation? First, thisbrokers (sale of goods and services for commissions, the amount of which, as a rule, is agreed in advance). This category of intermediaries includes re altors, whose commission is fixed, regardless of whether he sells apartments - new buildings or "secondary". Real estate intermediaries are one of the most common professions in market economies. Secondly, distributors are resellers (the sale of goods from the company to dealers, they earn on the difference in prices). Thirdly, there are traveling salesmen (universal sellers who advertise and sell goods, earn through a variety of schemes, as a rule, travel from place to place all the time). Fourth, these are dealers (as a rule, they resell goods purchased at a reduced price directly from a distributor or from a manufacturer).

Finance Intermediaries

Once upon a time, there was no particular need to conduct other transactions with money, except for buying other goods for them - the currency had a fixed (often tied to the value of gold) price. Now cash flows are a whole field for speculation. This is used by financial intermediaries. Their work is most active in the field of investment. The most demanded function of financial intermediaries here is the risk assessment of investments in a project. The investor thereby entrusts the disposal of his future capital not to the object of financing directly, but to a certain person who is able to analyze how profitable the project will be, what are its prospects, primarily financial ones. Intermediaries take on the role of a subject who decides wheremoney invested.

The easiest way to understand this pattern is through the example of specific institutions. Firstly, these are trustees: having received money from clients, they decide how to profitably invest it in shares, assets, or, perhaps, lend it to someone. Secondly, these are credit unions - having at their disposal the funds of people who have joined them, they try to profitably dispose of them. Thirdly, banks can also be classified as financial intermediaries (when it comes to deposits). Fourth, these are insurance companies that, having received money from customers, use it as part of various accumulative programs. Fifthly, these are pension funds that turn the funds of citizens who have drawn up an agreement into beneficial payments when a person completes his work activity. Who are financial intermediaries? These are organizations that specialize in working with cash flows, which can take different forms, but the content in all cases remains approximately the same.

Intermediaries in terms of marketing

The market is a multilevel phenomenon. The manufacturer, in order to sell his product, must, firstly, acquaint buyers with the fact of its release, and secondly, deliver the product to the end consumer. If you can’t do it on your own, then marketing intermediaries will come to the rescue. There are several types of subjects of such activity. For example, these are companies for the logistics support of goods, companies specializing in the storage of products in warehouses, ensuring the safety of manufactured products. More oftenthey are most often used by producers who do not have internal infrastructure resources for the mentioned types of activities or lack finances for these purposes.

Another category of marketing intermediaries are lenders (or investors) who are able to provide the business with working capital to build the necessary infrastructure or expand the staff to promote the product. In addition to creditors, a businessman can turn to insurance companies that offer options for protection against entrepreneurial or commercial risks. Another category of marketing intermediaries is firms and entrepreneurs who help the manufacturer to study the market, properly advertise the product, analyze demand and, if necessary, adjust the production process.

Service intermediaries

Services, as you know, have a number of features that fundamentally distinguish them from goods - these are intangibility, perishability, inseparability from the source of provision, as well as high volatility (variability) of quality. Due to these characteristics, the role of intermediaries in the service sector is usually limited. Since the services are intangible, the client, without trying them personally, will not be able to get an idea about their real properties, about the level of service in a particular company. Intermediaries can, at best, colorfully describe the source of the provision of services, but the credibility of such actions will not always be high. The client would rather consider the recommendation of his acquaintance, and not a little-known person, to be more plausible, even ifthe speaker is very nice. At the same time, there is a market for mediation in the service sector, and there are firms specializing in such activities. Their common name is "service franchisor" or "service intermediary".

They enter into an agreement with the source of services and receive from it a "franchise" - exclusive rights to provide a service under a protected trademark, label, technology. The brand owner defines the basic principles according to which his services should be provided. If he decides that somewhere else there is a company or an entrepreneur capable of providing a service that meets the requirements, then he can conclude a franchise agreement with him and be sure that the client will receive approximately the same as if he came to the “head office” structure.

Retail sector

There is a subspecies of resellers called "retailers". They buy goods from the manufacturer or distributor, in order to sell them to the final consumer at a profit. Retail intermediaries work at the end of the distribution channels. They have several basic functions. First, it is a selection of the product range. The specialists of the retail brokerage firm analyze supply chains, select the best manufacturers in terms of their business model, and compile product catalogs. Secondly, this is advertising and information work - ordering and placing commercial shows in the media, TV, the Internet, placing information about goods in shop windows, printing corporate booklets and creating other sources of product data. Thirdly,this is the placement and storage of goods in warehouses, laying them out on the counter, monitoring freshness and appearance. Fourthly, it is technological support of transactions with buyers - acquiring, settlement and cash services, cash acceptance, exchange and return of products. This may also include lending, discount policy. Fifth, it is the provision of various customer services - delivery, work on claims, holding socially significant events.

Logistic intermediaries

The most important component of the work of a manufacturer of goods on the market is logistics. Intermediaries also exist within this area. They are divided into three main groups - 3PL providers, 4PL providers and narrow profile firms. Logistic intermediaries appeared due to the desire of manufacturers to concentrate and direct free working capital to the main formats of activity. Accordingly, to solve the problems of delivery of goods and warehouse accounting, factories turn to third-party businesses (in the “outsourcing” format). Firms of a narrow profile related to logistics intermediaries are forwarders, operators of cargo and warehouse terminals, and transport companies. Each of them is ready to take on some of the "outsourcing" functions of the manufacturer. 3PL (third party logictics) - companies that are able to provide a comprehensive logistics service. They perform many functions, but they are all intermediaries. These are entities that are closely integrated into the business model of the manufacturer of goods. Contracts that are concluded between the factory and such organizations are usually long-term,relationships are trusting. Sometimes 3PL-providers take on liability obligations (which is rare for the "outsourcing" services market). There are also 4PL-providers - they are companies offering the most complete range of services, a kind of "reference" providers of intermediary services in the field of logistics.

Provision of services via the Internet

With the advent of online trading, a new kind of intermediary has emerged. It does not have a clear definition, let's call them "Internet intermediaries". These are people who ensure the movement of goods from the seller or manufacturer to the buyer using Internet channels. As a rule, these are legal entities or individuals who help to choose the right product (as an option, they translate the description into the buyer’s native language), control delivery, and provide exchange or return procedures. Intermediaries are connected to online trading in the following main cases. Firstly, if the online store cannot send parcels to the country where the buyer is located. Secondly, the intermediary can help deliver the goods faster than the seller would do under the standard scheme. Thirdly, the buyer may need the help of third parties if he makes purchases in different stores, and the amount of delivery is too high - you need a person who is able to “collect” different items and send them at a better price to one address. Fourthly, the interaction of the buyer with the country of origin of the goods is somehow difficult or blocked (for example, the store does not accept Russian bank cards or does nothas a menu in Russian).

Features of working with intermediaries

The Russian economy is still developing, and the standards for many services have not yet been established. Therefore, the relationship between businessmen and intermediaries in our country is characterized by specific features. The youth of the market dictates its own realities. The main feature of the market now is that Russian intermediaries sometimes think tactically - they negotiate a lucrative contract with inflated interest. This is not good for anyone. The manufacturer, realizing that he overpaid, will choose another partner, and the end consumer will be forced to buy expensive goods due to the high appetites of the intermediary.

In developed countries, the approach is usually different, more "strategic", and this is very welcome by commercial organizations. Intermediaries there do not expect and do not strive for a one-time profit, but try to build long-term relationships with manufacturers of goods. Largely for this reason, prices in European and American stores are lower than ours (although the factory cost may be higher). Market experts believe that in Russia the development of the market of official dealers has the greatest prospects, when the price of the goods offered to the end consumer is recommended by the manufacturer itself. The incentive for resellers is a discount upon receipt of products (which may increase if sales go well).

American mediation style and Russian realities

The US, which has the world's largest economy, is considered the reference supplierprofessional intermediaries. The style characteristic of American dealers is spectacular, "fair". The presentations of intermediaries to clients take on the color of pathos, promises of a lot, "everything at once." This approach is actively promoted in textbooks on marketing in American universities, and more recently in Russian ones. Until now, many marketers in our country believe that the bearer of advanced negotiation practices are American intermediaries, they are the best in the world, according to gullible Russian experts, professionals in their field. In many ways, the principles of overseas origin are considered the only correct ones.

But to what extent is the style of the American mediator compatible with Russian realities? Experts believe that in a very small. Russians have developed a kind of immunity to presentations, bright, confident speeches by speakers, to intermediaries who sell goods persistently and assertively. Therefore, using American tactics, an intermediary working in Russia may not face an excessive demand for the goods being sold, but rejection. It should be noted that in the United States itself, the client is changing. Sociability, receptivity, gullibility, openness of American buyers is a thing of the past.