Question

• Describe how marketing channel members add value in the channel of distribution and then explain how it might be improved. Cite examples and defend your answer.

Answer 1

Marketing Channel members:

I). Manufacturer

ii). Distributor

iii). Retailer

iv). Consumer.

They perform various functions to make the final consumer consume the product. Their functions include:

i). Gather information and circulate the information among the group.

ii). Develop communication tools to persuade consumers to purchase the product.

iii). Communicate and attain feedback from the buyers.

iv). Negotiate with the customers and find in their needs.

i). Manufacturers add value to the raw materials by assembling and shaping the product that meet the needs of the customers.

ii). Distributors procure in the products form the manufacturers and show the retailers path to procure the products and sell them to the customers, in other words act as a intermediary between the retailer and the organisation.

Fetch in the grievances of retailers and share them to the organisation.

iii). Retailers communicate the benefits and features of the product in a best way to the customers to help them use the product, also attain feedback from the customers and share with the organisation.

All these elements of the channel adds value and help the organisation have a better positioning in the minds of the customer.

Improving distribution network:

i). Establishing win win relations with the suppliers to procure and manufacture premium products that meet the needs of the customer.

ii). Offering better commission rates to the retailers so that they push the organisation products at a much faster rate and act like face of the organisation to the customers.

iii). Helping the retailers in building their set up, etc.