Marketing Channels in Business and Economics

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Table of Contents

Marketing channels
Development of the Customer-producer Gap
Socioeconomic Factors of the Consumer-manufacture Gap
Gaps in Marketing Channels
Need for Marketing and the Intermediaries
Universal Functions of Marketing
References

Marketing channels

In recent times, marketing is increasingly becoming complex. The industrial revolution has been considered to be the primary catalyst for increasing market complexities. With improved transport systems, local goods have reached international markets. Characterized by different cultural demands and consumer preferences, among other factors, manufacturers are faced with the challenge of reaching these markets (Reddy & Pellegrini, 2012). Marketing channels have been developed to bridge the gap between the consumer and the producer to address this issue, to address this issue. In line with the importance of marketing channels, this paper will discuss the gap that separated the production from the consumer, the role of intermediaries in bridging the difference, and the purposes of marketing.

Development of the Customer-producer Gap

In the early times, the business was characterized by a primary mode of transport. This primary mode of transport ensured that the consumer got their products at the appropriate time. The cost of moving products from one place to another was a significant determinant of not only production but also distributing approaches. Therefore, products were placed closer to the raw materials (Boone & Kurtz, 2013).

Through such methods, products found their way to the customer by way of linear chain distribution. Production and consumption were done at the local levels. Local production of products meant that manufacturers and consumers could effectively communicate with each other. It was easy for the customers to specify the features they needed in these products and services. While a village blacksmith and potter characterized the ancient markets, consumer needs were quickly addressed.

The industrial revolution led to the improvement of sea transport in the18th century. Shipping technology in the 18th century led to increasing the scale of international shipping. The success of introducing ram in the global markets led to the shipment of slaves and sugar cane into the world markets. By 1840, locally produced goods such as drinks had entered into the international markets (Boone & Kurtz, 2013). At the climax of the industrial revolution, India had started exporting Cotton to all parts of the globe. Altogether, the improvements in the ancient markets led to the development of steamships by the mid of the 19th century (Coughlan, 2010). Although characterized by excellent transport networks, inferior modes of communication have greatly influenced the supply systems of the 21st century.

Since its inception, marketing channels have gone through a series of transformation phases. These phases include the Production Era that existed in the 19th and early 20th century, the production era in the 1920s, and the marketing era in the 1950s (Reddy & Pellegrini, 2012).

Foremost, the production era began in the 19th century and ended in the early 20th century. In this phase, a higher concentration was placed on not only plant efficiency, but also the capacity and volume expansions. Salespeople played a critical role in linking the manufacturer and the consumer. At this time, salesmanship was more of an art than skills. The next phase of marketing channels was the sales area. This era existed began in the 1920s. During the Sales Era, both economic prosperity and the industrial revolution were at its pick. Marketers began to realize that sales required skills. The last phase of marketing channels was the marketing era. The marketing era started in the 1950s. During the marketing era, sales representatives were required to link the manufacturer and consumer. The roles of marketers included goal setting, developing markets, and forecasting the market.

Socioeconomic Factors of the Consumer-manufacture Gap

The gap between the consumer and the manufacturer associated with a wide range of factors. Foremost, globalization has led to increased growth in the fashion industry. As a result, the market attractions have significantly affected the consumer cultural attributes across the customer segment (Hopkinson & Blois, 2014). For this reason, the shift in cultural values became a significant issue for marketers. The different cultural values across the globe have forced marketers to adopt marketing channels that will meet the needs of different cultures. Another socioeconomic factor that has led to the increasing gap between the manufacturer and the consumer is consumer preference. New products in the marketplace exist because of the industrial revolution. With a wide range of products in the market, consumers have developed unique preferences (Reddy & Pellegrini, 2012).

Consumer preferences have made it difficult for manufacturers to meet the increased consumer needs. The Last socioeconomic factor that has led to the gap between the consumer and the producer is the purchase intentions. In the recent past, consumers have developed the unique needs of purchasers.

Gaps in Marketing Channels

The industrial revolution came with many holes in the marketplace. Many consumer demands characterize contemporary consumers. Today’s consumers do want not only high-quality goods but also quality customer services (Hopkinson & Blois, 2014). For this reason, manufacturers will not gain a competitive edge by meeting the physical needs alone. The many gaps present in marketing include customer gap, knowledge gap, policy gap, delivery gap, and the communication gap.

To begin with, the knowledge gap the manufacture’s opinion and customer’s expectations. The policy gap focuses on the separation amid the service quality requirement and the management attitude (Hopkinson & Blois, 2014). The customer gap is the difference that exists between consumer attitudes and consumer expectations. Lastly, the communication gap exists amid external communications and the delivery of service.

Need for Marketing and the Intermediaries

Customer knowledge and communication gaps are increasingly making the delivery of products and services to the consumers have become complicated. Over time, the effects associated with this separation has forced business people to come up with approaches that will help in bridging this gap. As a result of the challenges related to the difference between the consumer and the manufacturers, marketing approaches have been invented to address these issues (Reddy & Pellegrini, 2012). These marketing activities are not only meant to overcome, but also neutralize these increasing gaps and inconsistencies in the channels of marketing. Intermediaries should be involved in the chains of distributions to address these challenges.

Universal Functions of Marketing

Marketing has comprehensive functions. The primary purpose is to bridge the gap between the consumer and the producer. They achieve this through the transportation of products to the market, the formation of markets, purchasing of products, trading of commodities, offering storage services, standardization, and sorting, funding, and risk-taking (Reddy & Pellegrini, 2012). Through its intermediary role, marketing is responsible for the breaking bulk process. Marketers meet the needs of customers since they want these products in small quantities. Marketing channels comprise of set independent roles that ensure products reach the consumer.

References

Boone, L., & Kurtz, D. (2013). Contemporary marketing. Fort Worth, TX: Dryden Press. Web.

Coughlan, A. (2010). Marketing Channel Strategy. Wiley International Encyclopedia of Marketing. Web.

Hopkinson, G., & Blois, K. (2014). Power-base Research in Marketing Channels: A Narrative Review. International Journal of Management Reviews, 16(2), 131-149. Web.

Reddy, S. K., & Pellegrini, L. (2012). Retail and Marketing Channels: RLE Retailing and Distribution. New York Routledge. Web.

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