The role of facilitating institutions becomes important in marketing process. Transport companies, banks, finance companies, insurance companies, advertising agencies, market research firms, warehouse management companies etc. play very important role in marketing process.
In the absence of these institutions, distribution remains incomplete. Such institutions play their special roles in marketing.
Roles of facilitating institutions in marketing process can be described as follows:
Roles of facilitating institutions in marketing process can be described as follows:
1. Transport Companies
Transport companies help carrying goods from one place to another. They take responsibility to carry goods from producers to the consumers. In this way, they create place utility of products.
2. Banks And Financial Institutions
Banks and financial institutions provide necessary capital to business firm. Finance plays decisive role in both production and distribution of goods and services.
3. Insurance Companies
Insurance companies provide important service to business firms. They bear risk of any loss of goods from shop, from warehouse or while transporting and ensure distribution of goods.
4. Advertising Agencies
The advertising agencies, which are operated to help in the promotion of business, make promotional plans, programs and campaigns of the business firms and implement them.
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5. Warehousing Companies
The consumers, at a time, do not consume all the products produced by business firms. On the other hand, warehouse is indispensable to keep necessary raw materials, semi-finished and even finished products safe. So, warehousing companies play an important role to maintain balance between demands and supply, manage regular supply and create time utility of the goods.
6. Market Research Firms
Market research firms collect information from market and consumers about needs and wants, market and product trend, demand situation, competitors' strengths and weakness, effectiveness of distribution strategy, etc. analyze them and provide important information to the business firms.
