Professional Documents
Culture Documents
Disintermediation and Reintermediation
Disintermediation and Reintermediation
● It is the process of removing the intermediaries by cutting the involvement of middlemen in the
distribution channel. Basically the companies want to deal directly with their customers, through
online means mostly their websites.
● The company incorporates this process for cost-cutting and increasing their profit.
● In spite of using all these electronic channels, they would need people for the logistic process
involving product flow.
Example:
Dell uses the process of disintermediation for distribution. They are one of the leading brand who
manufactures their own PCs and sends their products directly to end customer avoiding the use of the
traditional channel to cut the intermediary cost and channel conflict which might affect the sales.
Source: https://www.garyfox.co/b2b2c/
REINTERMEDIATION
● Reintermediation is the process of reintroducing the intermediaries between producers and
consumers.
● All the producers felt that removing intermediaries could make the process fast but gradually they
need intermediaries in new form i.e through internet channels (e-commerce)
Example: Companies using Amazon.in as an e-commerce channel that shows the
reintermediation process.
PROXIMITY MARKETING
Enabling mobile usage for attracting customers and also doing bill payments through mobile transactions
is one of the most used tactics now, when a customer enters any website of store or any retail they asked
for location tracking which people allows either unconsciously and consciously these enables the
marketers to track their customer and send the appropriate advertisement at right place and time, this all is
included in m-commerce.