Answer to Question #253959 in Marketing for Sihle

Question

Discuss three selected marketing gaps as well as the two intermediaries providing theory and relevant application for CBD oils

Answer 1

Discussion

A gap in the market is an opportunity to make and sell something that is not available yet. However, consumers would like to have it. The gap refers to the difference between the supply and demand for that product. In other words, it means a consumer-need that supply has not yet met. For companies, a gap in the market represents an opportunity for it to widen its customer base. One can achieve market penetration by identifying a gap in the market and filling it.

Cannabidiol (CBD) is a natural compound found in cannabis plants. Many people believe that CBD can alleviate schizophrenia, chronic pain, and sleep disorders. However, no conclusive medical evidence of this has been found. As more favorable information about the health benefits of CBD has come to light, this ingredient has found its way into many consumer goods, such as oils, coffee, facial scrubs, and sparkling water. Non-intoxicating CBD products (like CBD oil) have many takers. Consumers belong to all age groups, countries, and even species. As consumers learn about the benefits of CBD, many entrepreneurs have jumped into the fray with innovative CBD products. It’s a competitive market and many brands, big and small, are fighting to get a piece of it. Below are some of selected marketing gaps for CBD oils;

• It’s legal. Most US states have legalized the use of CBD for medical or personal use. In most states, consumers can purchase CBD products without a medical card.
• It may be an effective alternative treatment. Many people say they are benefiting from CBD as a treatment option. The National Center for Biotechnology Information reports that CBD can reduce epileptic seizures in children.
• No “high”. CBD does not give people a high. With negligible psychoactive effects, it’s an appealing option for people looking to alleviate pain or stress. It has also created a burgeoning market for researchers, farmers, and investors.

Intermediaries also known as distribution intermediaries, marketing intermediaries or middle men, are extremely crucial elements of a company’s product distribution channel. Without intermediaries, it would be close to impossible for the business to function at all. This is because intermediaries are external groups, individuals or businesses that make it possible for the company to deliver their product to the end user. Below are some intermediaries providing theory and relevant application for CBD oils;

 

• Wholesalers

wholesalers take title to the goods and services that they are intermediaries for. They are independently owned and they own the product they sell. While the growers and suppliers focus on getting the product ready for the customer, CBD wholesale businesses sell to various retailers and outlets for onward sale. Wholesalers can avoid the time and costs associated with preparing the goods for sale to the end-customer; they simply sell CBD in bulk for a lower unit price to the retailer.

• Retailers

A retailer is a person or business that people purchase goods from. Retailers typically don't manufacture their own items. They purchase goods from a manufacturer or a wholesaler and sell these goods to consumers in small quantities for a profit.

Reference

Donnelly Jr, J. H. (1976). Marketing Intermediaries in Channels of Distribution for Services: Service marketers should take a fresh look at the channels of distribution for services as distinct from the channels concept followed for goods. Journal of Marketing, 40(1), 55-57.