Companies are trying to move from conventional chains to value chains networks which can further pass on to the customers Companies are looking forward to moving away from the conventional supply chain and moving towards value network.The entire marketing channel is designed such that each partners role,responsibilities,need and importance is given due consideration.
So we can understand these as follows
Retailing
Retailing involves activities which involves selling of goods to the customer who does not buy it for selling further but for ultimate consumption.
The persons who makes the products available are known as retailers.They are of various types like Specialty store,Department store,Supermarket,Convenience store,Discount store,Off-price retailer,Superstore,Catalog showroom etc.
They includes the small stores which comes into direct contact with the customer.
Retail organizations are divided into three categories store retailers, non-store retailers and retail organization.
Store retailing involves Departmental stores. Store retailers are further divided on the service level with self service, self selection, limited service and full service stores. 90% of products reach the customers is trough stores.
Nowadays we have seen that the non retail stores like the online sites are gaining momentum and captured a significant market share.Non-store retailing includes direct selling, direct marketing, automatic vending and buying service. Internet retail giant Amazon.com is an example of direct marketing. Soft drink vending machines are a form of automatic vending.
Retail organizations are retailing stores under direct ownership of corporate. Customer satisfaction and brand management becomes easier through retail organizations. Corporate chain store like Old Navy and Franchises like McDonald’s are good examples of retail organizations.
For a successful marketing strategy analyzing the target market is necessary and look for what are the customers opting for -direct selling or in store selling as take decisions accordingly.
Services form a big part of retailing business, so retailers have to finalize level of service. Services include pre-purchase, post purchase and supporting services.
With the advent of technology and unprecedented economic growth, retailing has changed in many ways.
Wholesaling
The act of purchasing goods for consumer and industry for further resale is referred to as wholesaling. Here, manufactures and farmers are not considered as wholesalers and the channel members are known as customers. It includes B2B marketing dealings.
Wholesaler is an important part of the marketing channel. Wholesaler increase reach of the company products and the risk of selling to the customers. Wholesaler can store inventory of various locations of product thus increasing cost for company and time for customers. Wholesaler can serve as ears and eyes for the company in understanding competition and customer.
Marketing Logistics
The supply chain management is essential for companies to improve the productivity and reduce costs of the company. The purpose of marketing logistics is to design and implement optimum infrastructure which can deliver goods from the point of origin to point of sell in an effective and least cost manner.
This objective mix of high customer satisfaction and lowest cost possible does not go hand in hand. The major decision involved with logistics relates to order processing, warehousing, inventory,transportation etc.
Companies looks for shortening order to payment cycle. A long cycle will lead to decrease in customer satisfaction and company’s profit. Companies have to set benchmarks at each level from sales people receiving orders to receiving payment from creditors.
Warehousing for finished goods is another important hub for companies. There has to be a right balance between sales order and quantity of finished goods. Warehousing at strategic locations increases timely delivery of goods and reducing in inventory. Technology has helped in improving warehousing standards.
Piled up inventory is not a good sign for the company. Inventory management involves making decision with time and quantity of raw materials for matching customer requirements. Management principle like Just In Time (JIT) are used for better inventory management. In JIT focus is to develop well time flow of raw materials and finished goods.
Transportation and freight cost plays an important role in final pricing, delivery and condition of raw materials as well as finished products. Here companies need to make the decision, whether to use a private carrier (company ownership), contractual (Outside agency) or common carrier (service shared at standard rates).
Retailing, wholesaling and logistic decision are very important to deliver value to end customers.
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