Question

What is a marketing channel system and value network can be used in Hypermarkets in GCC and in Oman a especially ?

Answer 1

Marketing channels are the Pathways set for product or services after production to reach the consumers. The different steps involved in marketing channels Which helps product to be delivered consumer from producers , which are :

1. Producer to consumer.
2. Producer to retailer to consumer.
3. Producer to wholesaler to retailer to consumer.
4. Producer to distributor to retailer to consumer.
5. Producer to broker to wholesaler or distributor to retailer to consumer.

There are basically four types of marketing channels:

1. Direct selling.
2. Selling through intermediaries ( indirect channel) .
3. Dual distribution.
4. Reverse channels.

Direct selling : In this channel the product are directly sold to consumers from the producers.

Indirect selling: In this type of selling there is a third party between consumer and producer who delivers product to the consumers from producer.

Dual distribution : In this type of channel the wholesaler on manufacturer uses more than one channel simultaneously to reach the consumer.

Reverse channel : In this channel It may go from consumer to intermediary and then to beneficiary.

Value network : A value network is a network which creates partnership and value in the purchase, production and selling of product.

Yes market channel system and value network can be used in Hypermarket in GCC and in Oman, GCC required Logistic and supply chain management network to ensure quality and timely supply of both local and imported products, it is very essential for the hypermarkets as number of sales is food products are in bulk. GCC uses direct selling method as they wang product in cheap prices and to sell them with profit. They buy products in bulk and directly form the producers to cut the additional charges of intermediaries and gain more profit by selling the product.