The chains market using large scale methods
The best suited industry for this sector would be the retail industry which includes popular supermarkets such as Woolworths Coles and Aldi to name a few. Producers in industry perform one task which is the process of manufacturing and selling the goods to the wholesalers and eventually leading to the retailers. Retailers gather goods from the wholesaler and provide a one time service towards the consumer by adding value and essential services towards the product.
Retail stores are targeted to categories of individuals who buy specific types of products where as mass market suppliers such as wholesalers provide a bulk quantity.The main characteristics that sets a retailer apart from is that the retailer is the last party to sell the final product to the end user who is the consumer. The concept of retailing states that new retailing institutions enter the market as low status, low margin and low priced companies and then climb towards the higher status targeting the high end consumers. Retailing contributes towards the concept of economies of scale where large retail chains market using large scale methods of operation and supermarkets today are diversifying into hypermarkets to serve consumers better.Retailing has also added value to all producers’ products by providing a better position for sales. Retailers have come up with one of the best marketing strategies in selling products towards consumers by targeting it via mail order catalogues and direct marketing techniques.
These have significantly cut down the producers cost in marketing their own products which has been eventually outsourced to retailers. A mail order system relies on comprehensive catalogues to obtain sales. Products can be purchased on an interest free scheme for major purchases which is an additional advantage for consumers.Moreover, retailers add value to certain products other direct marketing promotions. It includes the use of direct mail where a promotional letter or an order form is sent through mail.
The television and radios are also used with orders purchases through telephones and over the internet. On whole intermediaries such as a retailer contributes towards wide market coverage and advantages in customer contacts, lower costs and a detailed cash flow. On the other hand logistics and distribution of products play another vital role to all parties in the marketing channel.
Logistics is the key management of the flow of physical materials. Logistics have traditionally been used with the understanding that only finished goods are part of the distribution. Logistics can evolve in an upward flow or in a downward flow.
Every player in the channel sends information or places orders that trigger behaviour by any and every other player including the downstream players. In the current business environment, consumers are increasingly demanding and increasingly diverse in what they demand. It is difficult to have the exact specifications.As noted previously supply chain management is essential and beneficial for organisations to improve productivity and reduce costs. The main purpose of marketing logistics is to design and implement infrastructure which will deliver goods from one point to the point of sale which is the retailer.
For example Dell is an organisation well known in terms of logistics and delivery of quality products in a short period of time. Dell being an online retailer has outsources its logistics to other firms ensuring the product is being delivered in quick manner.Furthermore although the sales are done online, the technical division and after sales supports have been outsourced to Gizmodo which is an IT specialised company. Logistics add an essential amount of value to the marketing channels. With this logistics could work on a reverse concept aswel where the product could be sent from the end-user to the producer.
This could occur if the product tends to be faulty in most cases. Therefore logistics play a vital role in the entire marketing channel process.