Business & Investment

Problems and Prospects of Retail and Wholesale Marketing in Nigeria

Read the Problems and Prospects of Retail and Wholesale Marketing in Nigeria. Be it wholesale or retail, both have divers functions when it comes to marketing. Wholesalers are men who buy goods in bulk and then resale them, while retailers in the other hand buy goods in small quantities, a great many a times from the wholesalers, and yet resale them to the end users.

They all operate on the basis of marketing processes. Wholesalers get into transaction with retailers and make effort in sorting out that which will best meet the interest of their business partners.

Problems and Prospects of Retail and Wholesale Marketing in Nigeria

More often than not they will assigned themselves the responsibility of supplying the goods to their customers, the retailers, they are more closer to their customers than those who manufacture the products

Wholesalers and retailers marketing processes is interesting as one is trying to complement each other and the vise versa.  The wholesale may decide to serve the retailer the time of coming to him to buy the products by traveling down the retailers’ shop and stock the good there for him. For example, most of the goods we find at the supermarkets are usually brought by the wholesaler.

It could be a must to him to undertake the responsibility because they are in business, if he does not do it, another wholesaler will,  and that may mean that he can lost his customers to another, that is why he try his best to interact and transact business with many retailers possible.

The wholesaler is the man between the manufacturer and the retailers. His warehouse serves both the manufacturer and the retailers purposes. In the case of the manufacturer, the cost of distribution of goods to the wholesalers and the money the manufacturer needs to store bulk quality (inventory) of the goods he prodces is reduced because of the wholesaler’s warehouse.

Moreso, on the part of the retailer, the retailers enjoys also some benefits from cost deduction of physical traveling down to buy the goods from the wholesaler. Almost the same benefits invited by the manufacturer from the wholesaler. The wholesale and retailer marketing has so many benefits for the parties involved.

However, the wholesalers is always in touch with his customers, the majority manufacturer and the retailer, he connects the manufacturer and the retailers as the communication connection. No often link between the manufacturer and his many customers, manufacturer May not know many of the customers who market his goods, and the wholesalers always stands in between, he is the one who gives the manufacturer information, it could be information about how the customers are reacting towards his products at the market place, sometimes, the wholesalers can inform the manufacturer what the prices in the market place is like, I mean the price changes in the market place.

He supplies the manufacturer with information about his (manufacturer’s) products in the market place, people comment about the products, their interest on the products or lack of interest on the products, he can even go as far as informing the manufacturer about a new products that are in the market place and sometimes the activities of the competitors in the market place. So the wholesalers serves as a link to the manufacturer and the retailers.

He give his customers information, a type of information they can rely on. Valuable information about services and products.

In the other hand, the retailer does just like that at his level,  he supplies information to his customers, do not forget that the retailer buys from the wholesalers not quite in bulk but in small quantities and resale the goods to his customers, the end user of the products or you can call them the consumer of the products. So he (the retailer) serves as a communication link between the wholesalers and the consumers, he gives his customers reliable and valuable information about the products in the market place and the end user’s reaction in the market place.

The manufacturer and the retailer are good financial managers who apart from managing their businesses, they also managed their financial resources with a view to make profits because that is the aim of every business man or woman. The wholesaler may often gives discount purchase to his customers or he can give credit purchase to his customers.

The credit purchase, for example can go to his customers, let us say, the retailer, the retailer may received goods from the Wholesaler on credit perhaps to be paid maybe say, in 30 days intervals, sometimes, the products can go to him with a discount if he (the retailer) pays early before the 30 days elapse.

The manufacturer in the other hand may receive financial help from the wholesaler if the wholesaler pays his bills as when due particularly, if he placed early order. The retailer also provides credit services to his customers on trust depending on the level of relationship.

Besides we are all aware that marketing involves advertising and promotion of the products in order to motivate customers to patronize your products. So the equally involved in the marketing activities, advertising activities, promotional activities, all is about sale promotion, giving customers reasons why they should prefer your goods among several others in the market place.

They are not without challenges, most evident is that of risk after all businesses are all about risk taking for one to be able to maximize profits. When  you take possession of products that you are not the producing you are a kind taking the risk manufacturers supposed to take in the event of theft incident or the products are destroyed by fire or the products just get spoiled some how.  And sometimes you can lost all the goods through natural disasters.

Moreso, when giving products on credit that is risk taking when the customers are not paying for the goods, and when you stock goods, which you are not the producer in either your warehouse or your store,  you are actually taking risks of relieving the manufacturers of the products

 

Suggestions

 

Since the manufacturer and the wholesaler, as well as the retailer are in business, and should one relief the any of possible risks, and if an incident occurred where one is likely to lose for relieving the risk of the other business transaction, such risk should be shared among the parties concern.

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Joseph Athanasius

Joseph Athanasius is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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