The TV reporter for a network news show is walking through a cornfield with a downtrodden-looking farmer in Iowa. As they continue through the field, the farmer comments: “My family and I have worked real hard over the years to produce a good crop, but we hardly get much of a price for it. But when I see how much they want for corn and just about any corn products in the supermarkets, I can’t believe it. The consumer is paying a high price while I’m getting a very low price, so somebody must be making a lot of money in between.” The reporter then turns to the camera and in a melodramatic style intones: “As you’ve just seen, we’ve talked with a farmer who, in spite of all his hard work, can hardly make a living. But you and I both know how high prices are in the supermarkets. Are we being ripped off by a bunch of middlemen?” Comment on the farmer’s lament to the reporter and the reporter’s remarks to the TV audience in light of the relevant channel concepts discussed in this chapter.
Answer to relevant QuestionsGrowth in online retail sales has been outstripping conventional sales in retail stores. This online sales growth might be enhanced significantly by the latest online sales phenomenon of mobile commerce—shopping via mobile ...Describe the distribution tasks that retailers are especially well suited for performing. Discuss the basic trends over the past 30 years with regard to total wholesale sales for (a) Merchant wholesalers; (b) Manufacturers’ sales branches and offices and (c) Agents, brokers and commission merchants. Best Buy is by far the largest consumer electronics retailer in the world with sales of over $45 billion and almost 4,000 stores world wide. Best Buy enjoys tremendous power in the marketing channels within which it ...Discuss the fundamental channel management issues associated with recessionary, inflationary and deflationary periods in the economy.
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