What major types of marketing intermediaries occupy retailing sector?
In the retailing sector, three major types of marketing intermediaries are represented. The first type is store retailers; they usually offer one of the following levels of service: self-service, an automated store, which is preferred by many customers (Cisco Customer Experience Research 4); self-selection, where customers select good on their own but can ask for aid; limited service, where more shopping goods are available; full service, where shop assistants help the customers at each stage of the buying process (Kotler and Keller 448).
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The second type is nonstore retailers. Nowadays, nonstore retailing is becoming more and more popular, and the growing number of customers prefer this type to the previous one. This type includes direct marketing (by means of the Internet and TV), automatic selling, direct vending, and buying services (Kotler and Keller 449).
The third type is corporate retailing and franchising. In such organizations, franchisees perform operations that are controlled by a franchisor. Such interaction is mutually beneficial: franchisees are better acquainted with the local market and have sufficient motivation while a franchisor possesses funds and opportunities (Kotler and Keller 450).
What marketing decisions do these marketing intermediaries make?
The mentioned marketing intermediaries make decisions related to the following fields:
- Target market – determining the key audience to understand the needed assortment, price, the specificities of advertisement, etc.
- Channels – finding out how to reach out to this audience (the Internet, traditional stores, or other formats).
- Product assortment – understanding whether a customer wants a narrow or a broad assortment, a shallow or a deep assortment.
- Procurement – developing the features of the merchandise policy.
- Prices – establishing reasonable prices.
- Services – establishing a range of available services (Kotler and Keller 453-457).
- Store atmosphere, activities, and experiences – selecting the way in which the environment in a store will be organized to encourage customers to spend time here (Lesonsky par. 8-11).
- Communications – selecting means to operate purchasing rates, such as sales, coupons, special programs, etc.
- Location – selecting convenient and beneficial locations for stores (Kotler and Keller, 458).
What are the major trends with marketing intermediaries?
Major trends among marketing intermediaries include the following. First, despite the fact that the majority of products and services are sold at traditional stores, nonstore retailing, especially via the Internet, keeps expanding (Heller par. 1).
The number of stores that are getting under corporate retailing is growing as well. Franchising advances along with globalization; international corporations, such as McDonald’s, prefer this type of ownership since it ensures higher profit and better adjustment to local markets. Giant corporations are becoming more powerful and start dominating in retailing while middle and small retailers are facing a crisis. Finally, Millennials are becoming a dominant category among customers, and retailers have to cope with that; for instance, they have to increase their presence on the Internet and develop mobile applications for their customers (Jankowski par. 1).
What does the future hold for private label brands?
In the future, private label brands will probably dominate in the world of retailing. They are already gaining more market shares than national brands. This trend will be enforced by the fact that private brand owners are beginning to use more and more brand management operations and strategic product innovation that are usually employed by national brands. Private brands are developing at a faster rate and in a more efficient way.
Customers are more likely to buy the products of private brands due to their belief that big national brands spend a lot on the advertisement, and these expenses affect the final price. Apart from that, customers do not see any difference in quality. The next generation of the world’s most successful and progressive brands will be represented almost exclusively by the private ones (Dawson par. 1-11).
Cisco Customer Experience Research 2013, Retail Shopping Results: Global Data. Web.
Dawson, Thompson. “Private Label Brands: The Future Leaders Of Retail?” Branding Strategy Insider, 2012. Web.
Heller, Laure. “The Future of Online Shopping: 10 Trends to Watch.” Forbes. 2011. Web.
Jankowski, Paul. “3 Insights To Help Your Millennial Marketing Strategy Succeed.” Forbes. 2015. Web.
Kotler, Philip, and Kevin Lane Keller. Marketing Management. 14th ed. 2009. Upper Saddle River, New Jersey: Pearson Prentice Hall. Print.
Lesonsky, Rieva. “6 Things Customers Want from Retail Stores and How You Can Deliver.” Small Business Trends. 2013. Web.