Question

a) Explain how channel members add value to the marketing channel. Provide an example.

Answer 1

Channel members are the intermediaries who acts as a link between the producers and customers. The channel members are crucial to a wide range of products. The provide a lot of facilities. The very important role they play is that they bring the customers closer to the product. They match the time, place, and possession gap existed between producers and consumers. Channel members gather information about consumers and producers to make products available in the market. It increases the market coverage as the company cannot alone reach all the customers. Through intermediaries different segments of the market could be easily reached. It helps in providing appropriate pre and post customer service and delivery of the products. It also advertises the product on behalf of the company on individual basis. They also assemble the goods, sort them , store them and transport them .

Though there are several companies which have their own showrooms or chain stores to provide the products to the customers directly. But there are several products which the company cannot deliver to every potential customer without the help of channel members. For example grocero, soaps, packaged food, soft drinks etc. These products are used in every other house and that too on a daily basis. The intermediaries help in making these products available to everyone in the nearest stores to them. They keep record of the stock of the product available at the stores and restock them whenever required. They transport the goods and also provides benefit of home delivery. They inform the customers about the product . They create long lasting relationships with the customers and has more persuading power than the company itself . They also assemble the goods as per proce , size , lots etc and thus can be easily provided to the customers as per their need.