Integrating course theories with practical applications and real-world examples

Peer Discussion

I think you make a very important point that without intermediaries many organizations cannot thrive. Depending upon the reputation of the product and the industry of the organization, marketing intermediaries are often necessary for the organization to access consumers. Reaching the target customer via a retailer or other distributor is often necessary (Kotler & Keller, 2016). However, some companies or products have been very successful using direct marketing via websites and social media, particularly if they sell a niche product to a specific consumer demographic and can cultivate a distinct social media persona. As you also note that ecommerce allows a smaller organization to save on costs and not sacrifice money to an intermediary. The downside of intermediaries is that unless a company is very prominent (like Coca-Cola, which you cite), it can be challenging to ensure that the company doing the distributing ensures the placement of the product conforms to the highly cultivated brand image.

Reference

Kotler, P., & Keller, K. L. (2016). A framework for marketing management (6th ed.). Upper

Saddle River, NJ: Pearson/Prentice Hall.

Peer Discussion 4

I agree that smaller organizations are more dependent upon intermediaries than larger ones. Larger organizations have greater leverage when they do use intermediaries, and many organizations may be able to channel their energies solely into direct-to-consumer selling, either through brick-and-mortar stores and online. Apple is a good example of this, as so many consumers use Apple stores and websites for the majority of their purchases, versus PCs which are more widely available through BestBuy, Walmart, Amazon, and other non-affiliated retail organizations. Apple has such established name brand recognition it is less dependent upon outside intermediaries, although Kotler & Keller (2016) note that almost all organizations are to some extent dependent upon distributors, if only to warehouse goods or act as physical storefronts. No organization can operate entirely independently, although some organizations are more dependent than others. Even organizations which sell only through their own websites are dependent upon social media, Google, or other independent platforms for advertising.