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Retail Distrubution

Retail Assignment / Homework Help
In an ideal situation the marketer would like to handle the distribution of his products himself. This gives him control over his products and also a chance of communicating directly with his customers. This helps him in building better and stronger relationship with his customers. However distribution through corporate channel arrangement is costly and the marketer often lacks the experience needed to run a distribution channel single-handedly. Therefore most of the marketers rely on resellers to distribute their products among the customers

Choosing the right members for the distribution channel is of great importance to the marketer. The customer's decision to buy a product is effected by a how he mentally places it in relation to other competitive products. Apart from this how a customer is also affected by how a product is distributed. Where is it located, that is, which resellers are distributing it? Reputation of the reseller also effects the customer's buying decision. In addition to these the customer's experiences while purchasing the product like time taken to deliver, condition when received will affect the buyer's feelings about the product and the marketer and how he positions them in relation to their competitors.

In this section we will focus on retailers as resellers of a marketer's product. Retailer is a reseller who buys products from supplying firms or manufactures the product themselves and then sells the product directly to the customers. In the US alone there are over 1,100,000 retailers according to the 2002 US Census of Retail Trade.

Both marketers and buyers are benefitted by retailers. Consumers are benefitted as they can buy goods in small quantities and at affordable price. The marketers benefit from the retailer's experience, easily reaching the target market, retail promotions help in increasing product demand, receiving customer response through them.

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