Marketing

The relationship between production and distribution is central to industrial growth. Yet despite the general acceptance of the importance of the role of the middleman, little is known about him. Scitovsky1 criticizes the professional literature for such neglect: Yet his role is crucial. After all, he discovers the difference in price between potential export and import markets and ascertains the scope for profitable trade. He makes potential exporters and importers aware of the gain possible from trade, establishes the contact and makes all the necessary arrangements, including the provision of financing, the procurement of inputs, and the arrangements for transportation, insurance, and dealing with customs (or the remission of customs’ duties). Middlemen also keep abreast of changing prices and market conditions abroad and, by switching trade in response to them, protect domestic exporters or importers. Those services require imagination, initiative, knowledge, experience, contacts, familiarity with local conditions in many countries; and all that, being of value, has to be remunerated accordingly. It is much more difficult for films to break into international markets without the support of intermediaries to provide market and product advice.