Prior to defining both wholesalers’ and retailers’ contributions to the marketing system, it is necessary to dwell on their definitions. While both related to the supply and value chains, wholesalers cooperate with producers to procure large quantities of goods and then sell the goods to retailers. The latter, for their part, sell the product in small quantities directly to the customers. Thus, in the context of marketing, wholesalers add value to the system by “extending producers’ sales force by initiating sales contracts” with the manufacturers (Pride & Ferrell, 2018, p. 382).
Indeed, wholesalers play a critical role in mediating communication between the producer and the retailer who studies the market. Moreover, wholesalers provide a significant economic advantage to the market, as manufacturers rely on them to secure the procurement of their products and provide a reasonable price for large quantities (Pride & Farrell, 2018). If retailers cooperated directly with the manufacturers, they would be unable to purchase large quantities of goods, and the value chain, especially logistics, would be affected.
As far as retailers are concerned, their primary goal is to create a market value for a specific product by securing communication with the customer. Hence, the retailers’ ability to develop and provide unique customer service through maintaining contact and interaction with the client adds value to the marketing system (Myerson, 2020). Moreover, in order to provide such a quality experience, retailers are to examine the marketing trends and develop various advertising strategies to draw the customer’s attention (Myerson, 2020). In such a way, by presenting the exclusivity of the product through advertisement, retailers enhance competition in the market. Competition, for its part, is of the paramount value for the proper functioning of the economy and the relevance of marketing whatsoever.
Myerson, P. (2020). Omni-channel retail and the supply chain: Working together for a competitive advantage. CRC Press.
Pride, W. M., & Ferrell, O. C. (2018). Foundations of marketing, loose-leaf version. Cengage Learning.