Ch. 14 - Marketing Channels and Retailing

Retailing is the process of selling goods and services to consumers through different channels of distribution (i.e. a set of independent organizations that facilitate the transfer of ownership as products move for the producer to consumers). For over 16 years now, proactiv has been distributed by direct marketing firm, Guthy-Renker. They have been instrumental to the success proactiv has become. Mainly by  leveraging its unique style of marketing to bring a revolutionary new approach to acne treatment direct to consumers. They have acted as an intermediary between the producers of Proactiv and the users of the acne solution.  Its direct to consumer model allows consumers to purchase products at a guaranteed low monthly price with generous extended return policies. Guthy-Renker has offices in Santa Monica, CA, Palm Desert, CA; San Francisco, CA; London, England; Malmo, Sweden; Wiesbaden, Germany; Tokyo, Japan; Sydney, Australia; and Gurgaon, India, making proactiv available on an international level.

There are a few different ways to get proactiv, mainly through non-store retailing. The primary way of getting proactiv is through online retailing/e-tailing which allows consumers to shop the solution online. Another way of getting proactiv is through shop-at home television networks. Their shows display products, with the retail price and viewers can phone in their orders directly on a toll-free number with a credit card. These two options make make it convenient for customers to get proactiv without having to go to a brick and mortar location. 

Another popular way of getting the acne treatment solution is through kiosks (i.e vending machines and stalls in some malls). Proactiv itself doesn't actually have a brick and mortar store, but the product can be found in certain retail stores throughout the U.S. Recently I visited the kiosk located at the Manhattan Mall in Manhattan, New York and It is found on the first level of the mall. These kiosks are strategically placed in the malls and stores to attract the target market.This brings to mind distributors and retailers use of the right and effective retailing mix. A retailing mix is a combination of the six p's- product (product assortment); place (location); promotion (advertising and publicity); price; presentation (layout and atmosphere) and personnel (customer service and personal selling). The right mix usually influences the target markets perception of a product. It also sets apart one seller from an other in the eyes of the consumers because they are always looking for sellers to meet or exceed their expectations.