Who is Commissioning Agent in Indirect Marketing?

Marketing is channelled as direct and indirect marketing.

Direct marketing involves buyers directly to buy products and to make buying decisions.

Whereas indirect marketing is about selling through other channels like wholesalers, retailers and others.

In this method the business does not deal with consumers directly.

How does Indirect Marketing work?

Indirect marketing strategy focuses on various channels like promotional events, branding and influencer marketing.

Here, consumers say that they've heard or seen an ad or a promotional campaign and that's what is indirect marketing.

Where a business is not directly relates to consumers, but through a medium or a source.

Sometimes, questionnaires, surveys, and short opinions are considered for the purpose of feedback.

Currently, blogging, social media, trade shows, coupons,  workshops  etc.,  are a powerful means of indirect marketing.

What are the lacking areas?

Some of the drawbacks of indirect marketing are--

• A strategy can be expensive and that is publicize a brand
• Finding right people who can promote products with benefits of sales can also be challenging
•  Expected results may not fall in place
• This method is adopted by only a few top brands

Who is Commissioning Agent in indirect marketing?

Prior to the discussion, it is important to quote about other distribution channels.

1. Producer-consumer which is used in industrial goods.

2. Producer-retailer-consumer which is used in large department stores.

3. Producer-wholesaler-consumer which is used in industrial products.

4. Producer-wholesaler-retailer-consumer which is used in most consumer goods.

5. Producer-sole agent-wholesaler-retailer-consumer which is used for a specific geographical area.

This sole agent is a commissioning agent which means producers deliver entire production of goods for distribution.

The commissioning agent in turn distributes the goods to wholesalers, retailers and consumers respectively.

The producer may appoint one or more commissioning agents depending on the locations.

Most of the risk is borne by the producer wherein he trusts the agent for marketing and selling.

Cutting all other marketing costs, producer relies on the agent for sales and profits.


 Conclusion

After the launch of influencer marketing, many brands have begun to trust the reputation and fan-follow-up for promoting their brands.

However, both influencer marketing and commissioning agent in indirect marketing, both of their unique strategies of success, if done well.