What characteristics of a retailer make it the best channel option for a company? How many intermediaries should be utilized? Why would a firm market a single product through multiple channels?
What characteristics of a retailer make it the best channel option for a company? How many intermediaries should be utilized? Why would a firm market a single product through multiple channels?
Retail Marketing - It is the process in which goods and services are promoted by the retailer to attract customers and generate sales from these customers. The strategy of retail marketing is made by using marketing tools either digitally or by others to call customers at stores and buy the products.
Characteristics of a Retailer.
- Direct contact with Customers -
- the retailer is the one who directly contacts customers. So, they are the final link in an entire distribution channel.
- Product sold in small quantity - Goods are purchased from wholesalers in bulk and then distributed amongst customers in smaller quantities.
- Maintenance of goods - It's the retailer who maintains the variety of goods essentially.
- Achieving maximum satisfaction-To achieve maximum satisfaction by exceeding customer's expectations and delivering outstanding services is the ultimate aim of a retailer.
- Dual performance- Retailers perform buying as well as assembling the goods.
- Performing functions of warehousing and storing is also the main function of the retailer.
Utilization of Intermediaries in the marketplace.
Intermediaries are also known as middlemen and play important role in a company's product distribution. They are also called distribution intermediaries and marketing intermediaries. Ex- Merchants are intermediaries who buy and sell.
There are total 4 types of intermediaries that can be utilized, They are as follows:-
- Agents/Brokers- Acts as an extension of a manufacturing company. They represent the producer to the final user in selling.
- Wholesalers- They do not work with a small number of products. they are independently owned and sell to retailers or intermediaries and not to the final user directly.
- Distributors - they stock the product and take ownership of the same and sell it to the retailer or other intermediaries for profit.
- Retailers- They are in the marketplace with a variety of shapes and sizes. From the grocery store to big outlets, large chains of Brands, etc.
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