Question

explain various parties from producers to consumers

Answer 1

Producer → CustomerEdit

The producer sells the goods or provides the service directly to the consumer with no involvement with a middle man such as an intermediary, a wholesaler, a retailer, an agent, or a reseller. The consumer goes directly to the producer to buy the product without going through any other channel. This type of marketing is most beneficial to farmers who can set the prices of their products without having to go through the Canadian Federation of Agriculture. Typically, goods are that consumed by a smaller segment of the market has influence over producers and, therefore, goods that are produced in the response on the order of a few consumers are taken into account. Normally goods and services of this channel are not utilized by large market segments. Also, the price of the goods is subject to significant fluctuations. For example, high demand dictates an increase in the price. In addition, this particular channel has three main ways of direct selling and these include; peddling, mail-order sales and trade through manufacturer-owned stores.[5] Peddling is an outdated version of trade between two parties and consignments are often sold in small amounts by sellers who are traveling to different places. For example, sales representative sells New Wave cosmetics to housewives by using a method of peddling. Mail-order sales are usually used to sell catalogs, books etc., except industrial and bulky goods. For example, a firm sells collectible through the use of mail-order. Also, this method of selling is normally made without eye contact. The last method undergoes through manufacture-owned stores. In this situation, the manufacturer itself is surrounded by the stores and directly supplies goods to its stores

Producer → Retailer → ConsumerEdit

Retailers, like Walmart and Target, buy the product from the manufacturer and sell them directly to the consumer. This channel works best for manufacturers that produce shopping goods like, clothes, shoes, furniture, tableware, and toys.[7] Since consumers need more time with these items before they decide to purchase them, it is in the best interest of the manufacturer to sell them to another user before it gets into the hand of the consumers. It is also a good strategy to use another dealer to get the product to the end-user if the producer needs to get to the market more quickly[8] by using an established network that already has brand loyalty. In accordance with the form of the retail property, operators can be an independent company, owned by a different owner or to engage in the retail network. Intermediaries (retail service) are essential and useful due to its professionalism, an ability to offer products to the target market, using their connections in the industry, experience, the advantages of specialization and the high quality of work.

Producer → Wholesaler → retailer → CustomerEdit

Wholesalers, like Costco, buy the products from the manufacturer and sell them to the consumer. In this channel, consumers can buy products directly from the wholesaler in bulk. By buying the items in bulk from the wholesaler the prices of the product are reduced. This is because the wholesaler takes away extra costs, such as service costs or sales force costs, that customers usually pay when buying from retail; making the price much cheaper for the consumer