Wholesaling, Retailing, and E-marketing

Mariano Marcos State University

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY
City of Batac, Ilocos Norte, Philippines
Facilitating Services
- functions involving transfer of ownership and physical
supply

1. Standardization and grading

A retailer of fresh fruits and vegetables has to
standardize and grade these to make them acceptable to
consumers. They establish standards, inspect goods they
receive and sort them in various classifications.
Mariano Marcos State University
COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY
City of Batac, Ilocos Norte, Philippines
Facilitating Services
2. Financing

Quite often, retailers purchase in large quantities

and then divide them and repack them before selling.
When the retailer sells goods on credit he performs
finance function. From the moment he sells and collects
the last peso from the customer, when goods are sold on
credit, he is said to be performing a financing function.
Facilitating Services
3. Risk-taking

During the entire time a retailer holds title to particular goods,

he must inevitably bear a wide variety of risks. Not only the goods may
be destroyed through fire or flood, but also, these is often the danger
of theft, deterioration or spoilage.
Furthermore, such merchants are also faced with the threat that
consumers will not accept their product or will purchase them only at
unprofitable prices. He also undertakes risk in handling of fashion
goods and other items for which consumer demand varies greatly from
time to time.
Facilitating Services
4. Market information

Since the retailer knows about the wishes of his customer, the
price, quality and the kind of merchandise available in the market as
well as the existing and anticipated style trends, he keeps in stock the
goods usually required by customers.

Mariano Marcos State University

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY
City of Batac, Ilocos Norte, Philippines
Evolution of Retailing
- All over the world, retailing is undergoing a process of evolution
and is poised to undergo dramatic transformation.
- In recent years, there has been a slow spread of retail chains in
some formats like super markets, department stores, malls and
discount stores.
- Factors facilitating the spread of chains are availability of quality
products at lower prices, improved shopping standards,
convenient shopping and display and blending of shopping with
entertainment and the entry of industrial houses into retailing.

Mariano Marcos State University

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY
City of Batac, Ilocos Norte, Philippines
Evolution of Retailing
- The concept of self service in shopping was introduced in 1953
- Specialty stores were just emerging in the mid-1990s.
- On-line retailing has become the trade format in recent years.

Mariano Marcos State University

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY
City of Batac, Ilocos Norte, Philippines
Environment of Retailing
Macro-environment
1. Demographic
2. Social
3. Legal
4. Economic
5. Technological

Mariano Marcos State University

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY
City of Batac, Ilocos Norte, Philippines
Student Activity/Game
1. Divide the class into five groups (randomly-picked).
2. In 15 minutes, the members should make a list of the
factors that fall under each type of macro-
environment.
3. The group which identified the most number of
factors (cumulative) wins.
Demographic
• size of population
• geographic distribution
• Population density
• mobility trends
• age distribution
• Social, ethnic and religious structure.