Retail and wholesale organizations exist as members of marketing channel systems

Question

Retail and wholesale organizations exist as members of marketing channel systems. But they also do their own strategic planning as they compete for target customers. Retailing will continue to change in the future. These firms make decisions about product, place, promotion, and price. Strategic planning decisions include different types of retailers and wholesalers and how theyare evolving.

CONCEPT REVIEW:
It is useful to think of retailers from their point of viewrather than only as outlets for manufacturers' products. Most retailers see themselves as buyers for their customers, rather than selling arms of manufacturers. Specialized wholesalers have developed to provide wholesaling functionsreally just variations of the basic marketing functions. Wholesalers are not guaranteed a place in channel systems. Some have been eliminated. Others probably will be. Other wholesalers have been making a comeback in part because of the Internet which is impacting both retailing and wholesaling in significant ways.

nd Drag an Traditional Stage Steady growth, profit in '01 Low cost Low status provider One-stop shopping Innovative Stage Mature Stage Frugal Powers web- storefronts Set industry standards Expansion and reinvention et prev

Explanation / Answer

Amazon.com wheel of retailing stages

traditional stage of Amazon -Amazon entered the market as a low status provider low profit margins and low prices .and frugal pentrating market setting industry standrads .

mature stage - expanding enlarging customer base, widening market share ,and high profitmargin then maintain steady growth moderately, retain customers also with expanding reach finding new customers.

Innovative stage - fosuing more on customer loyalty over profit focusing on one stop shopping store ie buying everything on amazon .expansion and reinvention in terms of webstore fronts for buisness owners to sell from their own brand stores on amazon.com showcasing brands and product assortments along with amazon market place ithus bringing instore experience online and giving consumers virtual shopping experience.

Amazon has reinvented itself moved into new product categorie and internet retailing has gone a big way in teerms of taking advantage of Internet of Things

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