Give an Example Where a Channel Member Performs Only One Flow for the Channel, Yet Is an Important Member in Making the Channel Work Well. Give Another Example of a Channel Member Who Participates in All Eight Channel
The best suited industry for this sector would be the retail industry which includes popular supermarkets such as Woolworths Coles and Aldi to name a few. Producers in industry perform one task which is the process of manufacturing and selling the goods to the wholesalers and eventually leading to the retailers. Retailers gather goods from the wholesaler and provide a one time service towards the consumer by adding value and essential services towards the product. Retail stores are targeted to categories of individuals who buy specific types of products where as mass market suppliers such as wholesalers provide a bulk quantity. The main characteristics that sets a retailer apart from is that the retailer is the last party to sell the final product to the end user who is the consumer. The concept of retailing states that new retailing institutions enter the market as low status, low margin and low priced companies and then climb towards the higher status targeting the high end consumers. Retailing contributes towards the concept of economies of scale where large retail chains market using large scale methods of operation and supermarkets today are diversifying into hypermarkets to serve consumers better. Retailing has also added value to all producers’ products by providing a better position for sales. Retailers have come up with one of the best marketing strategies in selling products towards consumers by targeting it via mail order catalogues and direct marketing techniques. These have significantly cut down the producers cost in marketing their own products which has been eventually outsourced to retailers. A mail order system relies on comprehensive catalogues to obtain sales. Products can be purchased on an interest free scheme for major purchases which is an additional advantage for consumers. Moreover, retailers add value to certain products other direct marketing promotions. It includes the use of direct mail where a promotional letter or an order form is