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Do they
perform
negotiatory
functions?
Yes No
Producers and
manufacturers
Wholesale intermediaries
Intermediaries
Contactual
Yes organization Retail intermediaries
(marketing channel)
Consumers
Final users
Do they Industries
perform
negotiatory
functions?
Transportation firms
Storage firms
Advertising agencies
No Facilitating agencies
Financial firms
Insurance firms
All wholesale
firms
Independent Manufacturer
middlemen owned
Customer service
• By extending open account credit to customers on product sold, so wholesalers
Credit and financial allow customers to use products in their business before pay them.
assistance • By stocking and providing ready availability for many of the items needed by
their customers.
(see Table 2.5 for the alternative bases for classifying retailers)
Growing Power of Retailers
Three major developments: