After reading Clayton‘s post, it made me think of the importance of marketing intermediaries. From what I learned in class, marketing intermediaries should increase value for customer and fulfill the value proposition of the brand. But according to the articles I read, it did the opposite. On Autoblog.com, a Toyota deal added a “Market Value Adjustment” of $7000 to an inexpensive $ 20000 car. This seem strange since it is a 33% increase of the car’s marketed price. As we know, advertisements from car manufactures are advertised as MSRP(manufacture suggested market price); however, it doesn’t seemed the excessive markup, by this auto dealer, align with Toyota’s mission statement of selling safe and economical cars. Here is another excellent example of a marketing intermediary damaging a brand’s image.

As both automakers should have legitimate power over their intermediaries, it doesn’t justified the that ” the dealers are independent business operations………. ultimately the final price is determined in the negotiations between a dealer and the customer.” Franchisees have the responsibility to protect their brand by monitoring and maintaining quality control of the franchises.