• Physical movement of goods from manufacturers to consumers. Marketing intermediaries are responsible for transportation cost: The wholesaler/distributor transport finished products from the manufacturer to their warehouse,while the retailer transports it to their shops.
  • Provision of storage facilities: Marketing intermediaries provide warehouse where manufactured goods purchased are started.

  • The Wholesalers buy in bulk from the manufacturer thereby reducing the stock level and the cost of stock of the producers.
  • They assist the manufacturer in sales promotion and advertising activities.
  • The wholesaler give credit facilities to retailer. They allow retailers to buy,make part payment and balance up at a fixed date.
  • The wholesalers also give quality discounts to retailers.
  • Wholesalers finance the manufacturer. In some cases wholesalers are made to pay for goods in advance of supply.Under this situation wholesalers are financing the manufacturers.
  • Information are passed from the consumer through the retailer and wholesaler to the manufacturer.