The set of services extended by particular retailers may be part of their core product offerings or it may ‘add on’ to their product or service. Assortment is the number of variations available in each product category, e.g. For several product categories where brand loyalty is not very strong or for unbranded products the retailer’s recommendation is vital. 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 provide knowledge regarding new. These retailers offer specialized products or services to their customers. Your email address will not be published. 12. 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. Storing – The retailer stores products for the customer. The retailer is also able to convince the customers into buying a certain product due to personal relations he has with them. Functions. Satisfies Local Tastes – Retailers keep the local tastes and preferences in mind and stock merchandise accordingly. Breaking bulk means physical repackaging of the products by retailers in small unit sizes according to customer’s convenience and stocking requirements. 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. The major participants in any commercial cycle are: 1. It also provides customers an assortment rather than one product only. Retail essentially completes transactions with customers. Retailers keep a reasonable stock of various products.   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. It helps to keep prices stable and enables the manufacturer to regulate production. Retailers maintain an inventory that allows for instant availability of the product to the customers. A retailer provides the following information to the wholesaler: b. Functions of a … 5. 11. Periodic checkup services free or at low cost during or after warranty period, 13. 13. The individual who undertakes the activities of retail trade is known as a ‘Retailed’. The retailer performs storing function by stocking the goods for a consumer. Last Outlet in the Chain of Distribution 9. In this context, they perform various functions like sorting, breaking bulk, holding stock, as a channel of communication, storage, advertising and certain additional services. Bridge between wholesalers and consumers, 2. 19. The functions of retailing include : a.Sorting :The items are arranged in order by the retailers so that the customers are able to locate and pick up their needed goods easily. This information is sent back to the wholesalers or manufacturers, who in turn will use it in their marketing strategies. A retailer is the connecting link between manufacturers and wholesalers. Retailers have to select the combination of assortments from various categories. Marketing Function 17. Consumers can keep a small stock of products at home as they know that this can be replenished by the retailer and can save on inventory carrying costs. This is because they have a short shelf life. For the sale of durable and costly goods to con­sumers, a hire-purchase or an installment sale facility is offered. 3. They do not have to travel long distances to reach the wholesaler or the producer. This provides convenience and enables customers to buy anytime during the day or night. Retailers play a significant role as a medium between manufacturers, wholesalers, suppliers, and consumers. With multi-channel retailing, retailers offer the flexibility of multiple retail formats like retail stores, web sites, mail-order catalogs, and a toll-free number. A retailer gives information to consumers and displays the item in his store. Retail management teaches about inventory management and supply management, where it conveys various techniques to optimize the entire retailing operations. Retail trade cuts off smaller portion from a lump of goods. Products are continuously available in the stores most of the time. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Retailers play a significant role as a conduit between manufacturers, wholesalers, suppliers and consumers. People who “run an account” with the retailer go to one shop. The retailer also serves the manufacturer by performing the function of distributing the goods to the end consumers and thus forming a channel of information leading to the consumers. A retailer may have to perform the marketing functions of branding, grading and packaging when lie deals with ungraded goods received from producers. Shopper’s stop targets the elite urban class, while Pantaloons is targeted at the middle class. A retailer provides valuable services to both, the wholesalers as well as consumers. The manufacturer can then modify defective or unsatisfactory merchandise and services. Retailers fill orders, promptly process, deliver and install products. Online Services – In recent times many retailers have resorted to online services for their customers. Supermarkets in the US offer, on and average, 15,000 different items from 500 companies. Retailer also offer credit and hire-purchase facilities the consumers to enable them to buy a product now and pay for it later. Grading and Packaging 6. the one who intends to use the product) are included.It encompasses sale of goods and services from a point of purchase to the … Small manufacturers can use retailers to provide assistance with transport, storage, advertising and pre-payment of merchandise. So, retail operations can encompass everything about how a store operates each day. Whenever the wholesaler is not capable of carrying out marketing functions transportation and warehousing of goods, retailer takes over the responsibility. Then, again, there is always the possibility of the loss of goods by fire, theft, riot, deterioration in quality, etc., the risk of loss due to changes in -demand, changes in style and fashions, changes in prices are borne by retailers. 6. 3. The above process is referred to as the sorting process. 11. Holding merchandise is not on the basis of bias or any personal agreement, it is done solely of profit and commissions agreed upon. Providing an Assortment and Breaking Bulk: A retailer buys in bulk and provides customers in smaller quantities. Final consumers, in contrast, prefer a large variety of goods and service to choose from and usually buy them in small quantities.