Marketing Channels/ Assignment

There is a gap that separates the producers from consumers in the market. This gap was caused by some historical factors and practices that mostly appeared after the industrial revolution.
The discrepancies that separate the producer from the final consumer consist of the following: * Spatial separation
Producers usually locate in places it is economical to produce, whereas consumers are located in several different locations. * Separation of ownership
Producers own goods and services that they do not want to use. Consumers want goods and services that they do not possess. * Separation in Values
Producers value goods and services according to their costs and competitive prices. Consumers value goods and services according to economic utility and capability to pay. * Separation of information
Producers do not have an idea of what the consumers need, when they need it, and at what price. Consumers do not know what exists, from which producers, when, and at what price. * Separation in time
Consumers might not desire to consume goods and services when producers would rather produce them. * Discrepancies of Assortment
Producers focus on producing a narrow assortment of goods and services. Consumers need a broad assortment. * Discrepancies of Quantity
Producers rather produce and sell goods in large quantities. Consumers rather purchase and consume in small quantities.
Retailers provide important functions and services that help bridging the gap that separates producers from consumers. Amongst the functions performed are: * The sorting process:
A lot of manufacturers want to produce one kind of items and sell their whole inventory to as few buyers as possible. However, final consumers select from a variety of goods and services and buy a small quantity. So retailers collect an assortment of goods