Introduction of Retailing
The word ‘retail is derived from the French word ‘retailer’, meaning cut a piece off or ‘to break bulk’. In simple terms, it implies a first-hand transition with the customer.
“Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use.”
* The word retail has its origin in French word retaillier and means “to cut a piece’’ or “to break bulk’.
* “Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use.”
* According to Kotler: “Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non ...view middle of the document...
Retailer: Retailer can be defined as a dealer or trader who sells goods in small quantities, or one who repeats or relates.
Manufactures: Manufactures business whose primary economic role is the production of goods.
Wholesaler: Wholesaler, which acts as market intermediaries between producers and end users of products and services.
Retail Market: Retail Market refers to a place where a group of consumers with similar needs and group of retailer meet using a similar retail format to satisfy those consumer needs.
Retail Marketing: Retail Marketing can be defined as the process by which a retailer tries to identify the target market in order to satisfy the target market's needs and build up a sustainable competitive advantage.
Functions of a retaillier
* From the customer point of view, the retailer serves him by providing the goods that he needs in the required assortment, at the required place and time.
* From an economic standpoint, the role of a retailer is to provide real added value or utility to the customer. This comes four different perspectives
* Form: First is utility regarding the form of a product that is acceptable to the customer.
* The retailer does not supply raw material, but rather offers finished goods and services in a form that the customers want.
* The retailer performs the function of sorting the goods and providing us with an assortment of product in various categories.
* Time: He cerates Time utility by keeping the store open when the consumers prefer to shop.
* preferable shopping hours.
* Place: By being available at a convenient location, he creates place utility.
* Ownership: Finally, when the product is sold, ownership utility is created.
* Apart from these functions retailer also performs like:
* Arranging Assortment: manufacturers usually make one or a variety of products and would like to sell their entire inventory to few buyers to reduce costs. Final consumers, in contrast prefer a large variety of goods and services to choose from and usually buy them in small units.
* Retailers are able to balance the demands of both sides, by collecting an assortment of goods from different sources, buying them in sufficiently large quantities and selling them to consumers in small units
* Breaking Bulk: to reduce transportation costs, manufacturer and wholesalers typically ship large cartons of the products, which are then tailored by the retailers into smaller quantities to meet individual consumption needs
* Holding stock: Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacture to regulate production.
* Promotional support: small manufacturers can use retailers to provide assistance with transport, storage, advertising, and pre- payment of merchandise.
Major type of retail stores
There is no universally accepted method of...