RETAILING & WHOLESALING

RETAILING

• Retailing is the set of activities involved in the selling of goods to ultimate consumers for personal, non business consumption.

• A retailer or retail store is any business enterprise whose sales volumes comes primarily from retailing.

• Any organization selling to final customers is doing retailing, no matter whether it is a manufacturer, wholesaler or retailer.

• It does not matter how the goods or services are sold ( in person, by mail, vending machine, or on the internet) or where (in a store, in the street, or in the consumer’s home).

Changes in the Retail Environment

• New retail forms and combinations• Growth of intertype competition• Competition between store-based and non-

store-based retailing• Growth of giant/mega retailers• Decline of middle market retailers• Growing investment in technology• Global profile of major retailers• Retail stores as communities or hangouts.

Retailers’ Marketing Decisions• Retailers have to take many marketing

decisions in their operations and they are in the below mentioned areas

Target market

Product assortment

Procurement

Prices

Services

Store atmosphere

Store activities

Communications

Locations

• Target market : The first & most imp marketing decision taken by the retailer is to identify & define the target market properly.

• Product assortment : The customer requirement is checked & decides the depth and width of the product mix & product line

• Procurement : The demand is properly forecasted and required products are made available for sale.

• Prices – Pricing is a key positioning factor, and is done related to the target customer group.

• Services : Proper service has to be delivered as services are a differentiating factor.

• Store atmosphere : Factors like lighting, signage, flooring etc has to be arranged attractively.

• Store Activities : Special programs to attract and entertain customers.

• Communications : Customer communications to improve customer traffic and sale. Includes special sales, ads, reward programs etc.

• Locations – Most importer decision for a retailer is to decide upon the location of store.

Major Retailer Types

• Specialty store• Department store• Supermarket• Convenience store

• Discount store• Off-price retailer• Superstore• Catalog showroom

WHOLESALING• Wholesaling includes all the activities in selling goods or services to those who buy for

resale or business purpose

• The business of selling of goods in large quantities and at low prices, typically to be sold on by retailers at a profit

• Wholesaler : a firm engaged primarily in wholesaling activity.

Functions: Wholesalers add value by performing following functions

• Selling & Promoting – The sales force of the wholesalers help manufacturers reach many small business customers at relatively low cost.

• Buying & Assortment Building – They are able to select and collect the items required for its customers.

• Bulk Breaking – They buy large bulks and break it into smaller sizes suitable for their business customers.

• Order Processing – Important function done by the wholesalers. Proper quantity and variety of the required items are given timely.

• Warehousing – They hold and store the inventories there reducing costs and risks to suppliers and customers.

• Transportation – They are closer to the business customers and they offer faster delivery of the goods to the customers.

• Financing – They do finance for the procurement of their goods for business

• Risk Bearing – Along with the payment of money and transfer of ownership, wholesalers also bear the risk of owning and operating on a product category.

• Marketing Information – Along with their regular operations, they pass information(feedback) to the top.

TYPES OF WHOLESALERS