The process of selling merchandise to the ultimate consumer. The retailer is an intermediary in the marketing channel because he or she is both a marketer and customer who sells to the last person to consume.
3. Introduction
Performs many marketing activities such as
buying, selling, grading, and developing
information about customer’s wants.
The retailer is an intermediary in the
marketing channel because he or she is both a
marketer and customer who sells to the last
person to consume.
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6. ORGANIZED AND UNORGANIZED RETAIL BUSINESS
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ORGANIZED
Trading activities undertaken by licensed retailers. Example corporate backed hypermarkets,
retail chains and also privately owned retail businesses. Offers customer more convenience,
choice, control with an experience of comfort and speed.
UNORGANIZED
Refers to the traditional formats of low cost retailing example the local kirana shops, owner
manned general stores, paan shops etc. featured by poor and old infrastructure, insufficient
upstream processes and absence of skilled manpower. Not registered with any legal
provision and dosed not maintain regular accounts. They are small and scattered units which
sell products at a fixed or mobile location.
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Base of difference Organized retail Unorgfanized retial
Concept Modern Traditional
Registration and
maintenance of accounts
compulsory Not compulsory by law
Number of Items Large Few or limited
Size and layout Large and Attractive Small and unorganized
Type of employees Specialization required Perform varied functions
Capital requirement High less
Terms of employment Regular and job security exists NO job security
Business style Run on corporate style Run on sole trading or
partnership style
Business network Vast Narrow
Some examples Supermarkets, departmental
stores. Teleshopping etc.
Cobbler, vegetable vender,
kirana shops etc.
8. DIFFERENT TYPES OF RETAIL BUSINESS ESTABLISHMENTS
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1) Based on Merchandized offered
2) Based on ownership
Based on Merchandized offered:
a) Convenience store
b) Supermarkets
c) Hypermarkets
d) Specialty stores
e) Departmental stores
f) Catalogue store
g) Discount store
h) Shopping store
i) General store
j) Warehouse store
k) Variety store
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Based on Ownership:
a) Independent store
b) Corporate store
c) Franchising
d) Consumer cooperatives
e) Other
e-retailing, vending machine,
automated retail stores.
11. FUNCTIONS OF RETAILERS
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1) Breaking bulk into small quantities
2) Providing product info to customers
3) Providing customer service
4) Creating convenience
5) Providing feedback to producers
12. CONCEPT OF CUSTOMER
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One who buys goods is a customer but who consumes goods is consumer.
a) Loyal customer: These customer are less in number and promote more sales, spreads word of mouth.
b) Discount customer: They are only part of business wait for stock clearance, sale and discount periods,
only purchase low cost products.
c) Impulsive customer: They buy merely looking at displayed products hence it is challenging to sellers
to handle such customers as they usually make more purchase if product is visible to them during
purchasing period.
d) Need based customer: They asre product specific, only buy habitual products or have need for, tough
to satisfy.
e) Wandering customer: New customer who are looking for something new and fresh, require attention.
4Ps of customer service
a) Promptness
b) Politeness
c) Professionalism
d) personalisation
13. CUSTOMER SERVICE FUNCTIONS
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1) Customer Support
2) Pre sales
3) Marketing
4) Sales
5) Technical support
6) Social media customer services
