Retail management tutorial

Answer

1. Retailing is the distribution process of a retailer obtaining goods or services and selling them
to customers for use. This process is explained through the supply chain.

2. a)Delivery of the goods to the end consumer

This makes shopping for all requirements quite hassle-free for the consumers. This also
facilitates consumption and maximizes consumer satisfaction. Because the company cannot
take responsibility of delivery to every single customer, it appoints retailers. One of the
functions of retailing is immediate delivery.

b) Is an essential part of the distribution chain

Because the retailer takes over the cumbersome task of distribution of goods manufactured
to the target market, the manufacturer is relieved of this responsibility and can divert his
resources to manufacturing activities.

c) Finances the wholesaler

While booking his order of goods with the wholesaler, the retailer pays some percentage or
the whole of the order price in advance. This helps the wholesaler to carry on with his
operations seamlessly. In some industries, it is the retailer who pays cash to maintain stock
and in others the wholesaler has to carry the stock as paid capital. Nonetheless, financing is
one of the major functions of retailing. A retailer who does not contribute to financing will
bring down the effectiveness of the supply chain.

d) Stores the goods according to market requirement

The retailer invests his working capital in building a gamut of inventory reflecting market
requirements. He also sells the requisite quantity, however small or big, to the final
consumers satisfying their needs. The retailers know the complete demand and supply
potential due to their years of experience. Hence it is one of the functions of retailing to
balance the demand and supply as per external market conditions.

e) Lends a hand in manufacturer’s marketing initiative

Retailer plans and executes many advertising and promotion activities at the point of
purchase i.e. right in his store. This leads to gain in popularity of and favorable market
conditions for the product of the manufacturer.
3What are the essential characteristics of retailing?

a.Direct interaction with customers: The retailer acts as the final link between the organisation and
its customer. The retailer knows his customer better than anyone. He even suggests the customer
what to purchase and allows him credit facilities to encourage frequent buying behaviour in the
customer.

b.Small purchases: The customer purchases goods in small lots from the retail stores. So there are
frequent visits to the retail store by the customer.

c.Instrument of marketing communication: via which information about the product is disseminated

to the needy customers.

d. small quantities
retailer buy and sells good in small quantity

e. varieties of goods
a retailer can sell various necessary goods to consumers

f.shop display
retailer decorate and display goods to attract customers

4.
Services Performed By Retailers:

Services to Manufacturers and Wholesalers

Retailers provide the following services to manufacturers and wholesalers.

1. Help in Distribution: Retailers relieve the manufacturers and wholesalers of the burden of
collecting and executing a large number of small orders from various consumers.

2. Market Information: Retailer supply valuable information to wholesalers about changes in

tastes, preferences, fashion etc. of consumers

3. Large Scale Operation: The manufacturers and wholesalers are freed from the trouble of
making individual sales to consumers in small quantities. This enables them to operate on, at
relatively large scale and thereby fully concentrate on their other activities

Services to Consumers
A retailer provides the following services to consumers.

1. Regular Supply of Goods: Retailers maintain a ready stock of various products of different
manufacturers for sale to consumers. This enables the buyers to buy products as and when needed.

2. New Products Information: The retailers provide important information about the new arrival
of products through their personal. Selling efforts and effective display of products.

3. Credit Facilities: Sometimes retailers provide credit facilities to their customers and enable
them to increase their level of consumption.
Miscellaneous Services
· Retailers provide free door delivery services to the customers.

· They provide after sale service to customers.

· They allow cash discounts on their sales.

Services to the Government

1. Payment of Taxes
Retailers collect General Service Taxes and pay it to the Government which leads to increase in
national income.

2. Helps in Improve the Standard of Living

Retailers help the society to improve the standard of living of people and contribute to economic
development of a country.

5.

Wholesalers Retailers

1. Wholesalers buy from the manufactures Retailers buy from the wholesalers
and sell goods to the retailers. and sell goods to the consumers.
2. Wholesalers usually sell on credit to the
retailers. Retailers usually sell for cash.
3. They specialise in a particular product. They deal in different kinds of goods.
4. They buy in bulk quantities from the They buy in small quantities from the
manufacturers and sell in small quantities wholesalers and sell in smaller
to the retailers. quantities to the ultimate consumers.
Retailers usually sell at their shops.
5. Wholesalers always deliver goods at the They provide door delivery only at the
doorstep of the retailers. request of the consumers.
6. A wholesaler needs mainly a godown to A retailer needs a shop or a
stock the goods he handles. showroom to sell.
A retailer usually sells at a particular
7. A wholesaler goes to different places to place. Sometime he may have
supply. branches in other places.
8. A wholesaler need not provide shopping
comforts like luxurious, interiors, A retailer usually provides shopping
provision of air-condition, trolleys, etc. comforts mainly to attract customers

7. unorganized retailing, by business definition, is the conventional format of low cost retailing. It
includes the local kirana shop and restaurant, general and provision stores, single owner manned
medical store, the local dhobi and even the hand cart and pavement vendors.
8.

9.

These unorganized retailers form the core of trade and commerce in this country. They manage their
inventory quite well and run profitable businesses without any external funding. They also provide a
great customer experience - greet their customers with a smile

they don’t have a lot of manpower to work with. These retailers optimize their resources (money
and people) in the best way possible.

9.