The middlemen, as a sales channel for producers to choose from, are by no means passive and have their own marketing decisions and strategic issues. Moreover, some middlemen are so powerful that they can even control the producers they do business with. Therefore, as a manager of industrial and commercial enterprises, the type of middlemen and their marketing decisions and strategies must be further analyzed.
1. Types of wholesalers
Wholesaling refers to a variety of trading activities for resale, further production and processing or other commercial purposes and sales of goods. Wholesaling in a broad sense encompasses all sales of goods or services to any purchaser other than the ultimate consumer. Here, we restrict wholesaling only to companies primarily engaged in the wholesale business, and refer to those companies that specialize in the purchase and sale of goods in large quantities between business enterprises and other organized markets as wholesalers.
Wholesalers are in the middle stage of the distribution process, buying goods in large quantities from producers (and also from other wholesalers) and selling them to retailers, producers, or other wholesalers. Their main functions are concentration (acquisition and warehousing), balancing (compilation and distribution), diffusion (sales and transportation), services (financing services, information services, management services, consulting services, promotional services) and risk taking.
There are many types of wholesalers, the extent of which is closely related to the level of development of the market economy of the country (region). Types of wholesalers can be divided into a variety of different perspectives, the internationally prevailing basis for division is according to whether or not the ownership of goods. According to whether the ownership of goods, wholesalers can be divided into independent wholesalers and agent wholesalers.
1) Independent wholesalers
Independent wholesalers, also known as "merchant wholesalers" or "commercial wholesalers", refers to those who first buy the ownership of the goods sold, and then sold wholesalers. Independent wholesalers are the dominant type of wholesaler. They are categorized as full-service wholesalers and limited-service wholesalers according to the services they provide in marketing.
(1) Full-service wholesaler. Refers to wholesalers who provide almost all wholesale service functions. They have fixed institutions, facilities and personnel, stock in hand, can provide credit, delivery, assistance in management and other services. According to the different scope of their services, but also divided into three types:
①Comprehensive wholesalers. This wholesaler distributes a wide range of products, involving different industries, a variety of specifications, mainly for retailers. The products usually include daily necessities, hardware and home appliances, cultural products, medical and health care products, etc.
②Specialty wholesalers. This wholesaler only distributes products of a particular industry. Such as hardware wholesalers, grocery wholesalers, medicine wholesalers.
③ Specialty wholesalers. This wholesaler distributes only part of a product line. Such as frozen food wholesalers in the food industry, button wholesalers in the clothing industry.
(2) limited service wholesalers. Refers to those wholesalers who provide only a small amount of wholesale service function. This type of wholesaler is generally smaller, mainly for the purchase of smaller quantities of retailer services. Specific forms are mainly the following:
①Purchase from the wholesaler. This wholesaler distributes a small number of product varieties with fast turnover, mainly for small retail stores. Purchasers must buy in cash and bring their own transportation to ship away.
② freight wholesaler. Wholesalers who primarily provide sales and delivery functions. They distribute mainly perishable goods such as milk, bread, and snacks. They deliver goods to grocery stores, supermarkets, restaurants, etc., by automobile on a daily basis, usually in cash transactions.
3) Mail order wholesalers. This type of wholesaler sends catalogs to retail stores and customers such as businesses and organizations, and then mails the products or delivers them after receiving the order. Their main customers are stores located in areas remote from urban centers. Some of the products distributed are cosmetics and specialized foods.
2) Agency wholesalers
Agency wholesalers are wholesalers who are entrusted by producers to engage in the marketing business of goods, but do not take ownership of the goods. Its main function is to provide transaction services for buyers and sellers, receiving a certain percentage of commission as remuneration. Agent wholesalers of the main types are:
(1) agents. Agents can be wholesalers or retailers, as wholesalers of the following main types of agents:
① Producer agents. This type of agent sells complementary products on behalf of two or more producers. They sign an agency agreement with each producer separately, which includes information about pricing policies, sales areas, order processing procedures, delivery services, commission rates and various guarantees. This is a form of wholesaling used by small companies that want to expand their foreign sales but are understaffed, or by large companies that want to utilize agents to develop new markets.
②Sales agent. This agent is commissioned by the producer to sell all the products it produces. They play the role of the producer's sales department, and thus have a great influence on the sales price and trading conditions. Sales agents are generally not restricted by region. This is a form of wholesale for those producers who cannot afford to sell their products.
(2) broker. The main role is to match buyers and sellers and to assist in reaching a deal. They receive a commission from the principal, but do not own the inventory, nor are they involved in financing or risk-taking. Brokers are more active in the real estate and securities markets.
2. Marketing decisions of wholesalers
The marketing decisions of wholesalers are mainly reflected in six aspects, namely: target market decision, business scope decision, commodity purchase decision, sales price decision, promotion mix decision and sales location decision.
(1) target market decision-making
With manufacturers, a wholesaler can not do for all the people, therefore, in marketing activities must first determine their own target market. Because the wholesaler's service object is retailers, manufacturers and other wholesalers, in the choice of target market must take into account the characteristics of the needs of these buyers; at the same time, because the wholesaler's service object are intermediate consumption, and therefore the choice of target market also need to take into account the requirements of the final consumer. In this way. Wholesalers in the target market decision-making should use a variety of criteria, such as the size of the buyer as a criterion, it can be for large-scale buyers, but also for small and medium-sized buyers; according to the geographical distribution of the buyer, you can only serve local enterprises, but also for the local and foreign enterprises at the same time; according to the demand for the buyer's situation, you can be for the comprehensive buyers, but also for the specialized buyers The company's services can be provided to a comprehensive or specialized buyer according to the buyer's demand; etc.
Wholesalers target market decision-making, in addition to determining the customer base of services, but also in the customer base to identify profitable customers, through the establishment of good relations with such customers, in order to ensure that the enterprise's marketing efficiency. Also, voluntary chains may be established in conjunction with small and medium-sized retailers they serve in order to expand product sales.
(2) Business Scope Decision
Business scope decision refers to the decision on the variety of products to be operated, the number of specifications and the services to be provided. From the retailer's requirements, it is always hoped that the wholesaler can supply all the varieties of colors they need so that they can purchase all the goods at one time in a wholesale station, thus reducing the purchasing cost. But from the wholesaler's point of view, this is very difficult. On the one hand, it is difficult to fully meet the funds, warehousing equipment, sources of goods, etc. There will be certain difficulties; on the other hand, even if the real inventory is sufficient. Ensure rapid delivery, the enterprise will also be too much inventory and make profit damage. Therefore, wholesalers in the decision-making must be carefully studied how many product lines appropriate. In order to both ensure that profit receipts and to meet the needs of buyers, wholesalers in the decision-making is usually used in the "ABC management", that is, the products are divided into A, B, c three categories, A on behalf of the highest-profit varieties, B on behalf of the profit of medium varieties, C on behalf of the lowest-profit varieties, through the control of different varieties of inventory levels to Ensure that the enterprise profitability.
Wholesalers in the business scope of decision-making, but also consider the number of service programs. Services are vital to building good relationships with customers, so it is important to decide which services should be developed and which ones should be dropped or charged for. Here, the decision is based on the premise of discovering the particular mix of services that customers value.
(3) Merchandise Purchase Decision
The wholesaler's merchandise purchase decision consists of three main aspects: purchase of merchandise, channels of purchase, and stock levels.
The core of the decision to purchase goods is to buy the goods to be marketable. Marketable commodities usually refers to those products of high quality, brand-name products and color varieties suitable for the requirements of the sale of products. At the same time, the purchase of goods to consider the life cycle stage of the product, if the product to the decline, even if it is a high-quality products, can not be purchased in large quantities, so as not to cause backlog.
Different channels of purchase directly affect the price of the product. Wholesalers have two channels of purchase, one is from the manufacturer of goods, the other is from other wholesalers. The former's purchase price is lower than the latter. Therefore. Should try to choose from the production company directly into the goods.
Wholesalers in order to ensure that retailers need to meet the supply of goods, there must be a certain amount of storage, but this storage is not unlimited, too much storage to take up a lot of money, which is not conducive to business. For this reason, it is necessary to determine a reasonable amount of stock, in order to do both to meet the supply, and will not cause a backlog.
(4) sales price decision
The traditional practice of wholesalers in the price decision is to add a certain percentage of gross profit on the purchase cost of goods, that is, to become their own sales price - wholesale price. Because the wholesaler also has to sell the product to the retailer, the retailer and then increase the price to sell to consumers, therefore, the wholesaler plus the gross profit can not be too high. In this way. After deducting all expenses, the average profit margin of the wholesaler is usually low and can only be maintained by expanding sales. In recent years, wholesalers are looking for new ways to improve their earnings: first, by cutting margins on certain product lines to win over new and important customers so they can increase their purchases; and second, by persuading suppliers to grant special price reductions in order to gain expanded sales for the suppliers.
(5) Promotional Mix Decision
For a long time. Most wholesalers do not pay attention to promotional work, they believe that the promotion of promotional campaigns are manufacturers and retailers, because they want to sell their products to the dry households; the number of their own sales targets are small. Therefore, there is no need to do what publicity, as long as the sales staff with a single customer can talk. This way of thinking, so that some wholesalers in the fierce competition in the market in trouble. Therefore, the wholesaler must change the concept, improve the understanding of the promotion, the promotion of a combination of good decision-making.
Wholesalers of the promotional mix of decision-making mainly around three aspects:
①Overall planning, so that a variety of promotional methods and activities organically combined together. To design the overall promotional strategy and promotional programs according to the characteristics of their target customers.
②In the promotional techniques to establish a good corporate image as the center. Because wholesalers deal with too many types of products. Can not imitate the manufacturer's promotional methods, can only focus on publicizing the enterprise, rather than on publicizing the product.
③Promotional methods should be a combination of short and long, with the use of. Such as advertising and personnel marketing can be used for a long time, public relations and business promotion can be used for a short period of time, of which the key is to make good coordination of publicity content.
(6) sales location decision-making
Wholesaler's location decision-making mainly from their own favorable and favorable to the buyer to consider two aspects. From its own point of view, the wholesaler's gross profit is low and fixed, in order to increase profits, must reduce costs, which determines its sales location is generally located in the area of rent, taxes and other expenses are lower, and storage conditions, office facilities and other investment is less. But from the perspective of the buyer, they require easy to buy, fast order processing, rapid delivery, easy transportation. Wholesalers must improve the coordination of the two. Due to the development of transportation conditions, geographic location is no longer the main factor affecting the purchase of retailers, wholesalers should be mainly in the sale of goods and office conditions. Therefore, the automation of warehouse transportation, office conditions will be the focus of decision-makers.
3. Types of retailers
Retailing is the activity of selling goods and services directly to the final consumer. All sales of goods and services directly to final consumers for personal and non-commercial use fall under the category of retailing. It is irrespective of the organization engaged in these activities and the manner or place in which the goods and services are sold. Those business organizations whose sales operations are primarily from retail sales are called retailers.
Retailers are in the final stage of distribution of goods, they buy goods from producers or wholesalers. The goods are then sold to the final consumers. Their main functions are to acquire, store, break up, separate, sell, transmit information, provide sales services, etc., at the time, place and manner to facilitate the purchase and promote sales.
The types of retailers are increasing with the emergence of new organizational forms. They can be categorized into store-selling retailers and non-store-selling retailers according to their marketing methods.
(1) Store-selling retailers
Store-selling retailers are those retailers who have a fixed place of business for customers to choose goods. At present, most of the goods in the country are sold through store retailers. There are various types of store retailers, which can be categorized into full-service retailers, limited-service retailers, a la carte retailers and self-service retailers according to the level of service. According to the business characteristics, there are mainly the following eight types:
①Department stores. A comprehensive store with the main varieties of daily necessities, clothing, shoes and hats, food and beverages, cultural products, household goods, etc. It is characterized by a wide range of services. Characterized by a wide range of business, service projects, customers go to a store can buy most of the goods needed, and can get good service, thus becoming one of the main sales methods used in many parts of China.
②Specialty stores. To sell a product category or to meet the needs of a particular customer group of specialized stores, such as watch stores, women's stores. The store is characterized by a narrower range of products, but the range of products within the scope of business is more complete variety of colors. More service projects, pre-sale and after-sale are good service.
3 convenience store. Located near the residential area of the small store. This type of store is characterized by long business hours, operating varieties are mainly high turnover rate of convenience goods. Because these stores have fewer facilities, carry goods that do not require special packaging, and provide only limited services, the price is slightly lower than or similar to department stores.
4 Supermarkets. A self-selecting retail organization that operates on a fairly large scale, with low costs, low gross margins, and large sales volumes. The retail organization is characterized by a large business area, a wide range of products, low prices, long business hours. It is equipped with a full range of facilities, so that customers can choose the goods they are satisfied with on their own. This type of retailing is popular with a large number of low-income people.
5 warehouse store. A kind of no frills, give customers discounts and preferential treatment, the type of store with fewer services. It is characterized by a large business area and few facilities; it is located in the urban and rural areas, the products are selected by the buyers themselves, and the goods are sold at a lower price than in other retail stores. This type of store is more attractive to those buyers who buy in large quantities.
6 Discount store. A type of store that sells standard merchandise at lower prices. It is characterized by being far from the city center and having lower rent; fewer business facilities and lower equipment costs; and prominent sales of national brands. Quality is guaranteed: customers are self-serviced in sales, and sales prices are lower than in traditional stores. This kind of store can attract a large number of customers from far away to buy.
7 chain stores. Chain stores are formed by a large number of retail stores in the same industry in accordance with the principle of unity, in the same. The type of store that engages in business under a commercial image. This is a number of stores united together in the form of retail organization, which is characterized by a wide distribution, large scale, at least 10 stores, low commodity sales prices, all the stores to implement a unified, standardized management, unified purchasing, uniform distribution, uniform prices. Unified service standards, unified sales policy; stores are located in places where residents are concentrated, convenient for consumers to buy.
According to the store's property rights, chain stores are divided into three specific forms:
A regular chain store. Also known as "direct chain stores", refers to the establishment of a number of stores under the same capital to form a chain. The headquarters of the chain stores have full ownership and operation rights, the implementation of a high degree of unified management, lower prices than other stores with the same level of service. This is because they operate on a large scale, the purchase and transportation costs are low; high quality personnel, high sales efficiency; fewer links in the circulation, saving the circulation costs; unified promotions, the stores share of the promotional costs are low.
The second is a franchise chain stores. Also known as "contract chain stores", "franchise chain stores". Refers to the franchisor by contract. Jointly formed with the franchisee of the retail organization. Franchise chain stores formed on the basis of the franchisee has a unique product, service or unique way of doing business, trademarks, patents, know-how and so on. It is characterized by decentralized ownership, centralized operation, and has the advantages of a formal chain, popular with franchisees and consumers.
Third, voluntary chain stores. Refers to the wholesaler-led, the stores on a voluntary basis into a group of independent retail stores. It is characterized by unified purchasing and decentralized sales, thus reducing sales prices.
⑧ consumer cooperatives. A kind of retail store owned by consumers. This type of retail store is located in the community's residential areas, mainly for the residents of the district. This type of store is characterized by low selling prices.
(2) non-store sales retailers
Non-store sales retailers are those retailers who do not have a fixed place of business for customers to choose goods. There are three types of retailers selling without stores: direct sales, direct marketing and vending.
1) Direct sales. There are two types of direct sales as retailers, one is a manufacturer who sets up sales branches or specialty stores in various places, and the other is pyramid selling. Foreign MLM is multi-level marketing, which is a retail method of expanding the sale of goods by using layers to develop consumers as distributors. The process is that the MLM company develops purchasers as distributors, who disseminate information about the product through verbal communication. The development of new purchasers as distributors leads to the expansion of sales.
Distributors are paid a percentage discount from the sale of goods and also receive a percentage of rewards from the performance of other distributors they develop. China introduced MLM in the early 1990s, and in 1997 the State Administration for Industry and Commerce issued the Measures for the Administration of MLM, which only allowed the use of one layer of MLM, and the commodities sold were mainly health care products, cosmetics and some daily necessities. However, because the MLM approach was not suitable for China's national conditions, many problems arose in its implementation, and thus it was banned on May 10, 1998.
②Direct marketing. Direct marketing refers to the use of one or more advertising media to introduce the product to the customer, in order to seek a positive response from the customer, so as to achieve the purpose of the transaction marketing.
Specifically, the retailer chooses the media that can obtain the maximum order quantity for advertising products, customers can use letters, telegrams, telexes, or telephone orders, and the operator to organize delivery or postal delivery.
The specific forms of direct marketing are: a. Mailing catalogs. The retailer mails catalogs or preparation to selected customers, the customer orders by letter or telephone, and the retailer delivers or mails the goods. b. Direct mail order. The retailer identifies a list of various potential customers, mails advertisements to them, and the customer orders as needed. c. Telemarketing. The use of the telephone to sell goods and take orders. d. Television marketing. Introducing products to customers through television advertising programs or graphic television, and customers ordering goods by telephone. e. Internet marketing. The use of computer networking system, to the majority of customers to pass information, customers can order in their own network terminals, retailers according to the user's requirements for delivery.
3. Vending. That is, the use of currency-controlled machines to sell goods automatically. Advantages of vending is long business hours, 24-hour sales, thus facilitating the purchase; automatic service, no need for sales staff. The disadvantages are that vending machines are expensive and thus the goods sold with them are more expensive.
4. Retailers' marketing decisions
Retailers deal directly with consumers and need to do more marketing services, so their marketing decisions are more complex than wholesalers. Mainly includes the following eight aspects:
(1) target market decision-making
Target market decision-making is the most important retailer's decision-making, which is the basis for retailers to make other decisions. Only when the target market is determined and outlined, the retailer can make decisions about the scope of business, business characteristics, price, store location, purchase, sales, promotion and so on.
The retailer's target market decision begins at the stage of preparing to build a store. When it makes an investment decision, it has to decide whether it will target high-income, middle-income or low-income earners, and whether it will provide high-grade, mid-range or low-grade goods. Many retailers do not have a clear target market; they think they have a large market and serve all customers who come into their stores, but as a result, no one type of customer can be truly satisfied. Therefore, no matter what type of retail store you belong to, you must have a clear service target.
After determining the target market, it is also necessary to position the market according to customer requirements and competitive conditions. Since the selection of the target market focuses on the differences in the needs of the buyers, market positioning is carried out by focusing on the situation of the competitors. The size of the target market and the status of competitors should be used to determine their appropriate position.
(2) Scope of Business Decision
In order to satisfy the requirements of the target customers, the retailer also has to make a scope of business decision. A retailer's scope of business decision is to decide the width, depth and relevance of their product line.
The retailer's business scope must be in line with the target customer's purchasing expectations, if it is to meet the needs of customers in a particular specialty, its business product line should be deep and narrow; if to meet the needs of the mass consumers, its business product line should be wide, shallow and small or even no correlation.
In the business scope of decision-making, in addition to the variety of decision-making, but also consider the quality, style, packaging, trademarks, service and other factors. Through the reasonable combination of the above factors to meet the customer's purchasing needs.
(3) Decision-making of business characteristics
Business characteristics are the sharp weapon for all enterprises to seek development in the fierce market competition. Retailer's business characteristics of the decision-making mainly through the product and service differences, store atmosphere and corporate image to show.
Product and service differences are the primary factors that reflect the retailer's business characteristics. The product and service differentiation strategies that can be used by retailers in their decision-making include:
1) featuring unique national or global brands that competitors don't have; 2) featuring the store's own brands; 3) featuring novel and ever-changing products; 4) featuring the first to launch the most recent or up-to-date products; 5) featuring large-scale and unique sales activities; 6) featuring customized products; 7) featuring special customer needs; and 8) offering special products for the retailer's customers. ⑤ featured by large, unique sales events; ⑥ featured by the provision of customized products; ⑦ featured by the provision of products for special customer needs; and ⑧ featured by the provision of excellent service.
In the above, different service combinations are the main means of differentiation between stores in the non-price competition, but also in the buyer's market conditions for the main tools of the customer. Therefore, it is necessary to make good service decisions. Retail store sales service content is a lot, a large retail store to provide full service service items can be as many as thirty or forty items, the main service items in Table 12.
Store atmosphere is a reflection of the retailer's operating characteristics of the second factor. Store atmosphere first from the store, store appearance, such as stores decorated with luxury, some simple; second from the store layout performance, such as dark, crowded, some bright, spacious; again from the store to play music, store smells and so on performance, such as the sound of the noisy, cloudy odor, there are pleasing to the ear, the smell of incense.
9. Repair store atmosphere is the second factor reflecting the retailer's business characteristics. Store atmosphere first from the store, store appearance, such as stores decorated with luxury, some plain; second from the store layout, such as dark, crowded, some bright, spacious; again from the music played in the store, the store smells and so on out, such as the sound of noisy, cloudy odor, there are sounds, the smell of the sound of the ear, the smell of the aroma. Different atmosphere will produce different sales results.
The third factor reflecting the retailer's business characteristics is the corporate image. Corporate image is a comprehensive reflection of corporate marketing activities, through a variety of factors. Performance of the retailer's corporate image factors vary depending on the type of retail store, a large retail store's good corporate image is mainly expressed in the following 10 aspects: ① store atmosphere is pleasant; ② store shopping is convenient (including going up and down the stairs, the distribution of counters to explain the counter, pick up, etc.); ③ to provide a variety of services; ④ variety of goods, specifications; ⑤ high quality of goods, no counterfeiting; ⑥ shopkeepers work seriously, high efficiency; ⑦ shopkeepers attitude, high efficiency; ⑥ shopkeepers work seriously, high efficiency. high efficiency; ⑦ shopkeeper's attitude is kind, treating people sincerely, childish and helpful; ⑧ reasonable price of goods; ⑨ convenient to other stores; ⑩ convenient to go home.
(4) price decision
The price is a key positioning factor for retailers, which must be determined according to the target market, business scope, business characteristics and competition. The retailer's pricing decision includes determining the pricing method and pricing strategy two elements.
All retailers want to sell at a high price and be able to expand sales, but in practice it is difficult to do so. This is because high-priced goods can only be sold to high-income earners, and the number of high-income earners is limited, thus determining that a high price will not be able to sell more. Therefore, retailers always have to refer to three types of pricing methods, namely, cost-oriented, demand-oriented and competition-oriented, to make two major types of decisions, namely, high markup and low volume and low markup and high volume. The former applies to high-class specialty stores and the latter applies to large general shopping malls. As for the specific price can be further broken down according to the situation.
Pricing strategy decisions are mainly centered on the psychology of the buyer and promotions. For example, most consumer goods use fractional pricing strategy to show that their goods are low-priced and calculated accurately. In order to promote, can also use discount price, special product price and other strategies.
(5) Store Location Decision
Another competitive factor in whether a retailer can attract customers is how well it chooses its store location. Large retailers have three levels of location decision-making: first, they have to decide where to locate their stores in a country, such as in the east, west, south, north, central and north-east; second, they have to decide where to locate their stores in the cities in these areas, such as Shenyang and Harbin in the northeast and Chongqing, Chengdu and Kunming in the south; and third, they have to decide where to locate their stores in the city, such as in the city center and the suburbs. For most retailers, the store location decision may only consider the third level.
The most important location decision and the one that requires the most careful justification is where to locate the store in a city's neighborhoods or lots. A retailer may choose where to locate a store in a city's central business district, regional shopping center, community shopping center, or residential shopping area.
The central business district is the oldest, most congested, and most commercially concentrated area of a city, such as Wangfujing Street in Beijing. Shanghai's Nanjing Road, Huaihai Road and so on. These areas are prime commercial locations with high daily traffic, but the cost of starting a store is generally higher.
Regional shopping centers are built in accordance with the city's regional planning, covering a large area of new commercial areas. Since they are newly built, they are designed in a more rational way, with big nationally known shopping malls as well as many small stores and many licensed specialty stores. In addition, there are spacious parking lots with attached restaurants and entertainment facilities, which are becoming increasingly attractive to customers.
Community shopping centers are smaller centralized commercial areas located near residential areas. With the development of residential construction. Shopping centers have formed near each residential area to serve the community. The center usually has only one large store and the rest are small stores.
Residential shopping area refers to the residential area for the residents of the district to buy daily necessities, oil, salt, vinegar service of the small group of stores. This type of store mainly meets the urgent needs of local residents.
The above four types of areas to set up stores have their own advantages and shortcomings, the central business district and regional shopping centers have a large flow of customers, but set up a store of high investment requirements; other areas have a small amount of traffic, but the investment requirements are also low. Therefore, retailers must make comprehensive trade-offs in order to choose the most favorable store location. Evaluation of the sales effectiveness of stores located in different locations mainly use four indicators: ① average number of people passing by each day; ② the proportion of the number of people who come to the store to patronize; ③ the proportion of people who patronize the purchase of goods in the proportion of customers; ④ the average amount of purchases per transaction.
When using someone else's store as a sample for your own survey, it is important to exclude non-geographic factors. For example, a store's business is slow, the reasons may be: ① inconvenient transportation; ② passing pedestrians in the store patronized by few people; ③ patronage of people just browsing and not shopping; ④ customers each time the purchase is too small. Only the first of these reasons is a poor choice of location, the remaining three are related to advertising, window displays, the quality of goods, prices and sales staff sales skills.
Retailers also need to address the issue of whether to set up a larger store or set up a number of small stores in the store location decision. A retailer should have enough stores in a city to gain economies of scale in promotion and distribution. The larger the store, the greater the coverage. However, due to differences in the types of goods, there is a wide disparity in the coverage of different goods, e.g., a small car may attract purchasers from the whole city, and the clothing category may bring customers from a large part of the city to make their selection, but foodstuffs, such as bread, may cover only a small area. Therefore. Consideration of the number of stores must be differentiated.
(6) Inventory Decision
The retailer's inventory decision includes the variety of goods, the channel of purchase, the time of purchase, and the way of purchase.
①The general requirement for the decision on the variety of goods purchased is that the goods purchased should meet the needs of the target customers in order to be sold as soon as possible to accelerate the turnover of funds. But specific to the varieties, specifications, quality, style, etc., but also take into account the trend of consumption and changing trends.
② purchase channel decision is to choose the best channel to purchase goods. Retailers of the main channels of purchase of manufacturing enterprises, wholesalers and professional sales organizations, different