Every aspect of marketing requires a proper understanding of the pros and cons involved. This is necessary in order to be able to fully optimize the marketing type being carried out and to plan ones’ resources accordingly so as not to incur a loss or fail in the venture altogether. Retail marketing is a subject that also requires a proper understanding in order for it to thrive. In fulfilling this requirement, there are a number of questions to be answered such as: what exactly does it mean? How does it work? Are there factors that determine results that I need to consider?
These and a host of other questions, provide the basis for understanding retail marketing.
Retailing entails selling finished goods to customers for final consumption and not for further use to produce other products. An essential determinant in the grand scheme of things on retail marketing is hinged on the theory of supply chain management. The theory states that a connection of cooperate marketing is established by the supplier, retailer and customer, and this connection generates a long-term relationship between them that provides mutual benefits to all parties. From this theory, there are mainly two relationship markets a retailer has to be aware of and they are the supplier market and the customer market. This in effect shows that the success of the retail market depends on the supplier and the customer.
The cost of purchasing goods from the supplier would definitely be a factor to consider while attaching a price tag to your products. So, there is need to observe the supply market and go for a supplier that fits your budget. Also, if there is an unstable supply of goods from supplier, you run the risk of running into a loss. By building a good relationship with the supplier, there is mutual benefit involved. The retailer can give suggestions and recommendations to the supplier on specific and evolving needs of the customers since he is in direct contact with them. This improves the efficiency and demand of the supplier’s goods and of course, that of the retailer as well. Improved and better adapted products are produced which gives both the retailer and supplier an edge in the competitive market. As time goes by, if the supplier is convinced the relationship that exists between him and the retailer is a beneficial one, the retailer can be provided with discounts and added benefits.
On the other hand, the customer market
is just as important as the supplier market, if not more important. Consumers
are the major factor that determine the competition success among retailers. As
a result of this, it is very paramount for a retailer to earn customer loyalty
through his relationship with them. The best kind of relationship to build with
customers is a long-term one, which will involve both parties mutually benefitting
from it. This means that this has to be the core value driving the retailer
instead of just making profit on a one time basis. In order to establish this, the
retailer has to make use of customer-oriented marketing strategies that aim at
keeping the customers to stay.
Understanding these are very essential in retail marketing and they are the factors that determine the success or failure of the business. As the middleman between the supplier and consumer, the retailer has to balance them appropriately for maximum results.