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Facilitating Agent - Meaning & Definition

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: December 12, 2023Read time:

What is Facilitating Agent?

Facilitating agent is an individual, who is not a part of an organization, but helps facilitate the product or service from the manufacturer to the customer. Thus any organisation which provides services without actually being part of transaction of product is called as facilitating agency. Person who is part of such an agency is called as facilitating agent.

Retailer or wholesaler may also act as facilitating agents for some organisations. Thus wholesaler can provide warehousing services for some other organisation and reap benefits of warehouse. Thus wholesaler acts as a facilitating agent. During movement of product from manufacturing unit till product reaches end consumer facilitating agents are used at almost every point of marketing channel.

Facilitating agency is defined as a marketing channel which is not directly involved in transfer of product from producer to consumer. Facilitating agency is an outside organisation usually hired by manufacturer for some particular work as creating advertisements or for designing the packaging of product. Thus costs of facilitating agency are incorporated in selling price of manufactured product. Also if manufacturer wants to outsource some part of product to some agency then that agency is known as facilitating agency.

Facilitating agency is not involved in paperwork of organisation and works as an outside agent. Examples of facilitating agency is company conducting market research, advertising agency, transportation and warehousing facilities providers etc. Facilitating agents play an important in smooth functioning of marketing channel from manufacturers to consumers.

Hence, this concludes the definition of Facilitating Agent along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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