RETAILING

Retailing---Tail-end of the
Commercial Tunnel
 Definition of Product
“In marketing, a product is anything
that can be offered to a market that
might satisfy a want or need.
However it is much more than just a
physical object. It is the complete
bundle of benefits or satisfactions
that buyers perceive they will obtain
if they purchase the product”.
Marketing Managers are those
who go to satisfy human need.
We bring about satisfaction
and welfare.
CUSTOMER
This term connotes that individual who
actually makes a decision in selecting a
certain product. He or she may and may not
directly consume the product. But he or she
takes a buying decision.
CONSUMER
This is a term, which has many facets. But in
business field we use this term to mean that
individual who derives direct utility of the
product.
For Example: A housewife for example buys
cooking oil for her household- she is a
customer. The entire family is a consumer.
“Retailing consists of the
sale of Goods/Merchandise
for Personal or Household
Consumption either from a
fixed location such as a
department store or kiosk”.
 In Commerce, a retailer buys
goods or products in large
quantities from manufacturers
or importers, either directly or
through a wholesaler, and then
sells individual items or small
quantities to the general public
or end user customers, usually
in a shop, also called store.
• Ability to Buy

• Willingness to Buy
We should be very watchful
and careful of the fact that
price of the product should
not fall outside the domain
of the ability of
customer /consumer to buy.
Retailers are at the end of the
Supply Chain. Marketers see
retailing as part of their overall
Distribution Strategy.
Retailing is done through

• Residential Streets
• Shopping Streets with
little or no houses
• A Shopping Centre
UNDER THE ONE ROOF
SHOPPING
 Shopping is buying things,
sometimes as a Recreational
Activity. Cheap versions of the
latter are window shopping
(just looking, not buying) and
browsing.
THREE MAJOR TYPES
OF RETAILING
 Two of which have
buildings that the
customer can visit to do
business with.
The First is Counter-Service
once the only type of shop.
The way the retailers talk
and behave tell the culture
of the society and nation.
• He talks about the characteristics
of the products.

• He talks about pricing.

• He talks about additional benefits

that product brings to the
customer.
For example: Image
The Second, and now more
widely used method of
Retail, is Self-Service.
 The third type, Where
Products and Services can
be ordered for physical
delivery, downloading or
virtual delivery.
Self-Service needs a lot
of management.
HISTORY OF
RETAILING
In the nineteenth century, in
France, arcades were
invented, which were a street
of several different shops,
roofed over.
 One can buy from a
hair-pin to an aircraft from
a shopping mall.
 RETAIL
FUNCTIONS
1- PRESENTATION
PRESENTATION adds
value to the product.
2- OFFERING
3- PRICING
4- REACH
Cuctomer’s accessibility is
called REACH
5- CONVENIENCE
 5- PRODUCT
INFORMATION
Crux of Retailing
6- PACKING
7- DELIVERY
8- VARIETY