It also involves a structure for sales and distribution for the goods to reach the customers. The structure also involves how the manufacturers motivate, sells, stores and delivers the goods to the final consumer.
For a marketing channel to be effective, it requires that proper communication is effectively done to avoid poor communication. Communication involves advertising, promotions; electronic-mail, telephone conversations and complaints follow up. To be able to design an effective marketing channel, it is imperative that the business analyze customer needs, set up objectives and also be able to evaluate alternative marketing channels for their organization.
In the traditional retail business wholesalers, distributors, retailers and the consumers are all involved in the transferring process. Storage and shipping is an important aspect of the marketing channel and it takes place at every level of the distribution channel. It is usually facilitated by players such as warehouse agents and freight carriers. Another aspect of the retail business involves the services that are given to the customer and such activities include providing them with adequate information, training them on all aspects of the product, fulfilling any statutory and legal requirements and facilitation of credit services for the customers (Hennig-Thurau and Hansen 2000).
Morrison's company was founded in 1899 by William Morrison. It began as a single egg and butter stall in Bradford, West Yorkshire. This company is one of the largest food retailer supermarkets with 375 stores. It mainly deals with food and groceries. Though big, it does not offer its customers an online shopping service which it is crucial for the expansion of the business. In addition, it has yet to venture into financial services market that is essential
This Company is said to have the same prices in all its stores and this has made it win their customers loyalty. Since it has a relatively small size and regional focus. It promotes most of its own products through using its Farmers, Boy and product subsidiaries. By the use of the wholesale model, this has proved to be the focal point in generating the company's profits while at the same time, it has maintained low prices. The company depends on its own subsidiaries to provide products and packagings to all its stores .They also have their own manufacturing facility which is unique to suit their market. The Morrison's company lays its emphasis on freshness, quality, provenance, in-store production, in-season food and their expression of their deep understanding of food. (Hennig-Thurau and Hansen 2000).
The company operates its own manufacturing plant and it does its own distribution because all these channels are well integrated. In this company, they match the retail opening hours in all their stores. This chain of supermarkets also focuses on selling fresh food and also offers an employee discount scheme. Promotional offers are used like "half price "rather than "buy one get one free".
Internet based business
As compared to the traditional retail marketing channel internet based busi