You always buy lots of products. Do you know how they reach you? Retail marketing is the process from manufacturing to delivery. In this process, producers, wholesalers, and retailers play an important role today, and we will discuss what is retail marketing? Type of retail marketing, classification of the retail sector.
What is Retail marketing?
Table of Contents
What is retail marketing? Retail is the last channel of distribution. Retail refers to selling goods and services to the customer, consumer, and end user. The retailer purchases the product from the manufacturer or wholesaler in a huge amount. And sell to the customer in the small amount they want.
What is the Process of retail marketing?
After knowing what is retail marketing?. Now we will talk about the process of retail marketing
1. Producer
First, a producer makes goods and services with the help of raw materials and semi-finished goods. They make a large number of products. And sell to the wholesaler, retailer, agent, customers, etc.
For example, a producer makes 100 kg of sugar with the help of sugarcane. And sell to wholesalers, retailers, agents, etc.
2. Wholesaler
The wholesaler is an individual and business that purchases a great quantity of product from a producer, farmer, and other vendor. Wholesalers store all products in warehouses and sell them to retailers. On the other hand, these individuals can still use a list of the best places to sell online since there are a lot of opportunities digital platforms offer.
For example, a wholesaler purchases 40 kg and 50 kg of sugar from the producer and sale to the retailer
3. Retailer
A retailer is also a person and a company that buys goods and services from the producer and wholesalers. And sell to the customer in the small quantity they want.
For example, a retailer buys 20 to 30 kg of sugar from a wholesaler. And sell to the customer.
4. Customer
A customer is a person who buys the goods and services from a shop and a business they want.
For example, a retailer buys 2 to 3 kg of sugar from a retailer.
What is Modern and Traditional Retail Marketing?
After the question, what is retail marketing? The next question comes up: what are modern and traditional marketing? Let’s discuss modern and traditional retail marketing.
Do you ever purchase products from online websites? How was the experience?
1. Traditional retail marketing
Traditional business is less organized than modern business. It is a complex distribution network of micro retailers, android or windows kiosk solution, street vendors, wholesalers, and distributors. Traditional retailers make interpersonal relationships between the customers and the retailer.
2. Modern retail marketing
Now we talk about modern retail. As technology expands. Online payment is becoming so convenient for everyone; that is why people like modern retail more than traditional retail.
What Is The Type Of Retail Marketing?
So far we can discuss now what is retail marketing and process of retail marketing and modern or traditional retail marketing now we will talk about type of retail marketing
| 1) store-based retailing | 2) non-store retailing | 3) services sector |
1) Store-based retailing
Store-based retailing means there is a place where the retailing activity is done physically. It means a physical location where the goods and services are sold to the customer for consideration. Store-based retailing is divided into two categories.
| Based on ownership | On the basis of goods offered |
A) On the basis of ownership
| Independent retailer |
| Chain retail store |
| Franchise |
| Consumer cooperative |
| eased department |
B) On the basis of goods offered
| Shopping mall |
| Superstore |
| Hypermarket |
| Specialty store |
| Departmental store |
2) Non-store-based retailing
Non-store-based retailing means there is no place where the retailing activity is done physically. It means customers buy the products online with the help of the internet and mobile. Non-store-based retailing is also divided into two categories.
| Direct selling | Distance selling |
3) Service sector
The service sector means selling different types of services to the customer. Like banking service, insurance service, hospital service, saloon service, etc., a customer in any part of the country, even any part of the world, may book his taxi in advance.
The service sector divided into two categories
| Organized retail sector | Unorganized retail sector |
Importance of Retail Marketing
Now you learn about the importance of retail marketing together with what is retail marketing
- Contribution in GDP
- Creation of utility
- Comfort and facility of shopping
- Increase in standard of living
- Increase in employment
- Good customer service
- Increase in productivity
- Storage and where housing
Top 10 retail companies in us
Hope you learn now about what is retail marketing. Then see the top 1o retail companies. The retail industry is not the same. as it was 20 years ago. There is a lifestyle that has improved. Many things have changed. In some parts of the world, the retail industry is still run by small families. But the retail market is increasing day by day. Here are some statistics of the current top 10 retail company
This image is showing the top ten companies in retail marketing. and company their sales yearly. Walmart is the top retail marketing company with sales of 459.51 billion. Amazon. Com is the second company in this image which sells 217.79 billion.
A short example of retail marketing in modern retail marketing
How Many People Shop Online in the United States?
The below graph shows the increment of online buyers from 2017 to 2025. According to the current year’s data, the number of online shopping in the US has been increasing day by day. In 2017, there were 230.6 online buyers, and In 2022, analysts expected there to be 266.7 million online buyers—a 1.4 percent annual increase from the previous year. Online payment is becoming so convenient for everyone; that is why people like online shopping. The number of people online shopping in the US is set to continue growing.
Case study of FMCG product: maggie
There would hardly be a guy in India who has not eaten maggi . But the exciting fact is that maggie was not started by nestle. Maggie was created by a businessman named Julius maggie in the year 1816.
In the year 2015, maggie was banned in India. When maggie was tested in the lab then, it was found that maggie contained illegal quantities of lead and MSG. At that time, the allowed amount was 2.5ppm, and the maggie sample contained 17.5 LEAD and MSG. And these are very dangerous levels, that is why Maggi was banned.
Now the exciting thing is that 8 months later, Maggie came back. How is it possible? See, maggie was banned in June 2015, but they did not stop their marketing from the August end. They resumed their marketing campaign and used nostalgic marketing. Because of this campaign, the communication with consumers did not break but became stronger. It was banned in June and relaunched in November properly by passing the three tests.
Conclusion
After reading this blog on retail marketing, you would understand what is retail marketing. You also learn about the importance, modern and traditional types of retail marketing, process, and the difference between organized and unorganized retail sectors. And see the graph on how many people buy products online. This year will see more brands move to d2c. A retail business where companies can market and sell their product directly to the customer. According to a prediction by eMakers. U.s. d2c e-commerce sales will reach 151.20 billion in 2022. An increase of 16.9 percent compared to the previous year. I Hope, this information will help you.
