Privacy Policy 9. Retailers are the last middlemen in the chain of distribution who sell in small quantities to the end consumer. Account Disable 12. Connecting Link 16. A retailer tries to draw consumers’ attention towards the newly launched goods through the medium of window display and banner advertisements. Retailers buy varieties of goods from various manufacturers or wholesalers. Provides Variety and Assortment – The retailer provides various types of products to the consumers and also a number of variations in each type of product. For several product categories where brand loyalty is not very strong or for unbranded products the retailer’s recommendation is vital. Retailers act as a link between the buyers and wholesalers / manufacturers. 2. The retailers are the connecting link between the wholesaler and the ultimate consumer. However, a comprehensive retail marketing function requires a combination of many activities. In order to meet their customer’s requirements retailer have to break or arrange the bulk into convention units. 4. A retailer is the connecting link between manufacturers and wholesalers. The customers have flexibility of purchasing goods from such nearby retailers as per their convenience. They act as an adviser and guide to the customers. Thus, without retailers it is not possible to distribute goods to the ultimate customer and if so, our wants will remain unsatisfied. As retailers are in direct personal touch with consumers, they are often helpful in providing useful market information to the wholesalers and manufacturers regarding changes in consumer’s tastes and preferences as well as the availability of competing goods. This function receives negligible attention from the retailers now due to the introduction of new product categories such as FMCG and ready-to-wear apparel. They do not have to travel long distances to reach the wholesaler or the producer. Retailing is an activity directly related to the sale of goods or services to the ultimate consumer for personal, non-business use. Estimating the demand and arranging the purchase of the product, Window & Interior Display Advertising | How to Arrange | Advantages, Loyalty Schemes | Co-op Dividend | Features of Successful Loyalty Scheme, Promotion Methods in Direct Sales Marketing, Departmental Stores | Meaning | Features | Limitations, Departmental Stores | Characteristics | Advantages | Disadvantages, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. Warehousing 3. The above process is referred to as the sorting process. In this context, they perform various functions like sorting, breaking bulk, holding stock, as a channel of communication, storage, advertising and certain additional services. Breaking bulk means physical repackaging of the products by retailers in small unit sizes according to customer’s convenience and stocking requirements. Providing credit facilities to customers, 5. Technical services like installation, counseling about effective use and maintenance, 14. Provides after sales service repair and maintenance, 9. Retailers have to assemble and maintain enough stocks of a variety of goods so that they can meet adequately consumer demand and fulfil consumer expectations. Grading and Packaging 6. Example- Diagnostic services, music and handicraft stores, medical services etc. To ensure the regular availability of the offerings, the retailers maintain appropriate levels of inventory. While all retailers offer an assortment, they specialize in types of assortment offered and the market which the offering is made. Many people buy goods on hire-purchase or HP. The retailer is also able to convince the customers into buying a certain product due to personal relations he has with them. (viii) Last Outlet in the Chain of Distribution: In relation to producers and wholesalers, retailers act as the last outlet for the distribution of goods within the country. 10. For this, first of all they are required to know the different kinds of goods likely to be demanded by them and, secondly to locate the sources from where such goods could be obtained at competitive prices. Marketing plans are based on probable consumer demand. Retailer also offer credit and hire-purchase facilities the consumers to enable them to buy a product now and pay for it later. They should be distinguished on account of physical dimensions and attributed e.g., colour of flavour. The retailer is the last point of sale in the machinery of distribution. Retailers need to consider certain factors while devising assortment plans for their stores: profitability associated particular merchandise mix, store image, layout and the level of compatibility between the existing merchandise. A retailer is the con­necting link between the wholesaler and the consumers. 8. Uploader Agreement. The number of functions performed by a particular retailer has a direct relation to the percentage and volume of sales needed to cover both their costs and profits. Normally, retailers receive large quantities from suppliers to reduce their transportation costs. Retailers break up large quantities into smaller units such as individual canes, bottles, packets, appropriate for consumer use. Normally retailers receive large quantities of sacks and cases of merchandise from suppliers to reduce their transportation costs. Example- In an area where rice is mostly eaten, variety of rice products may be stocked with the retailer, and a place where wheat is consumed more in quantity, wheat related products will be stocked. The manufactures can then modify defective or unsatisfactory merchandise and service. They return the damaged products to the suppliers and thus maintain a feeling of security and trust with the customers. Retailers undertake various business activities and perform functions that add value to the offerings they make to their target segments. Westside provides clothing and accessories while a chain like Nilgiris Nest specializes in food and bakery items. The retailer is the last middleman in chain of distribution. For the sale of durable and costly goods to con­sumers, a hire-purchase or an installment sale facility is offered. Ikea is often cited as the best example of implementing great retail marketing strategies. The retailer acquires large quantities of the products and cuts them up into smaller quantities and sells them to individual consumers. Manufacturers usually make one or a variety of products and would like to sell their entire inventory to a few buyers to reduce costs. 1. Retailers Provide Services – Retailers provide many services to their customers as well as their suppliers. A good example would be the food and travel sector, a customer can book a taxi or a pizza from the comfort of her home and the service would be provided by the retailer. Customer Education – It is the retailer who is in direct contact with the consumers and it is the retailer who answers the queries of customers. This demand creation is quite helpful for manufacturers and wholesalers. Consumers need not store the commodity beyond their normal requirements. It includes both the depth and breadth of products carried. Even though retailers function in a limited area with a small number of customers, they always keep themselves ready to meet all the requirements of their customers.