BBA management topics UG degree

Middle Man concepts in business – BBA Study materials


Meaning :

Middle man specialise in performing activities that are directly involved in the purchase and size of goods in the process of their flow from producers to the unlimited buyers. Their position between the producers and the unlimited buyers.

A middle man normally facilities insurrection between putties for the mutual benefit and be also gots a cut or a commission for the some.

Definition :

A middle man be defined “A business concern that specialises in rendering or sale of goods in the process of distribution is know as middle man.In simple montage a middle man can be defined as a person or company that connects buyer with seller.

  1. Middle man are very important player in the market.middle man provide feedback to the product about that the market. this influencing the decision made be the manufacturers.
  2. Some people says middleman and agent are nothing but social parasites and the sooner they are eliminated the better for the society.
  3. With the rapid development in the field of business activities the business of today in not confined to a village or a state or acuity.
  4. In the situation it is not possible for producer to how direct contact with the consumer.thus we stay that middleman today play a vital role in the transfer of goods from consumer and more every an important link between products and ultimate consumer

Types Of MiddleMan

1- Functional middleman, Agent middleman. 2. Merchant middleman.

Functional middleman :

They are mostly engaged in wholesale dealers.the important types of agent middleman are broken commission agents manufacturers agents selling agents residents buyers auctioneers and warehouse.

Agent middleman

* They serve mainly the industrial users.

* They acts as a substitute for a sell products besyond limited of the salesman.

* they take more information to work for the buyers.

Merchant Middleman

Contrary to agent middleman merchant middleman buy and sell goods on their own account and risk. They take the title to goods.they are divided into two categories whole salers and retailer.

Function of merchant middleman :

* They are the connecting link between products and consumers and goods are supposed where they are demand distribution of goods.

* They notch the demand with production and they are demand creator.

* they perform the important functions of advertisement, display ect…,

* They know the purchasing power of customers and by information the product mix reasonable price.

* middleman are the furnishers of valuable information to the producers about consumer behaviour the changes in astes and fashion ect…,

* middleman are an important link between the producers and consumer. *Marketing channels which generally have oneor more intermediaring can be categorised into agent/ broket wholesaler and retailer.

* middleman are the connecting link between the seller and buyer.thay help the seller and buyer to enter into a contract to sale or purchase.this is the contractual function of the middle man.

* They direct the flow of goods from the manufacturers to the unlimited consumer. * they know the market conditions and hence they guide in pricing the product which is satisfactory to both the producers and consumers. The price will be profitable to both the parties.

* middleman is responsible for the flow of goods i.e physical distribution to goods. Buyers needs are falfilled by middleman.

* they give advice to manufacture one small commission.

* large_ scal production is possible with the help of middleman.they collect huge order and large purchase of products leads to large scale production.

Kinds Of Agent Middleman

1) Broker.

2) Commission agent.

3) manufacturers agents.

4) selling agents

5) Residents buyers.

6) Auctioneers.

Broker :

A broker is an agent. His main service is to bring the buyer and seller together. He is the agent of the owner of goods seeking a buyer other than the agent of the agent of a buyers who is seeking for supply he is active as an intermediary.

Commission agent :

Commission agent is an agent individual’s firms or even customarily experiences physics control over the sale of goods commission agent may arrange for deliver

The commission agent is services ari e manily used for rapid sale of perishable commodities like fruits, vegetables etc…, It is very important in agricultural industry marketing.

Manufacturers agents :

Manufacturers agents and employees by the manufacturers to sell their products.the features of the manufacturers agents are ;

They handle sales for each their principal within an exclusive therritcry.

They represent manufacturers of non-competing but related lines of goods.

They possess limited authority with regards to prices and terms of sales.

Selling agents :

Selling agents is an independent middleman. He operates on a contractual basis. He extended financial heles to his principal or manufacturers. Their services are in the marketing of textiles, foods product coal timber, metal products etc…,

Residents buyers :

Residents buyers is an independent agent and especial in buying for retailers. He receives competition or a fee on commission business. He operates in line of trade such as furniture garments etc..,

Auctioneers :

They are generally appointed by business firms.the question may be with reverse or without reverse. Agricultural and livestock producers used car dealers woolen cotton and tobacco merchant employ these auction companies they collect commission only from the seller for their services.

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