Page 10 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 1: Introduction to Retail Environment

The percentage that a retailer gets from the sale price depends on the number of functions that Notes
the retailer does for the manufacturer.

Task Visit your nearby retailers and find out what all activities do they perform to
enrich customer service.

Self Assessment

Fill in the blanks:

4. Retail offers an ....................... that enables customers to choose from a wide selection of
brands, designs, sizes, colors, and prices in one location.
5. Under ......................... process, the retailer undertakes activities and performs functions
that add value to the products and services while selling them to consumers.
6. Retailer’s ......................... allows customers instant availability of the products and services.
7. Retailers also help in ......................... and transport functions.

8. Retailers offer the products in small quantities to individual consumer and household
......................... patterns.
9. Offerings an ......................... enables customers to choose from a wide selection of brands,
design etc. in one location.

1.3 Retailer

Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing
as a necessary part of their overall distribution strategy. The term “retailer” is also applied
where a service provider services the needs of a large number of individuals, such as a public
utility like electric power.
The feature that sets a retailer distant from other members of its distribution channel is that the
retailer is the party who eventually trades the product to its end user or consumer. As you know
if you’ve ever shopped for anything, retailers come in numerous forms and sizes, so to converse.
Retailers may be grouped according to any of the given four categories:

1. Ownership: Every brick-and-mortar retailer can be classified as a huge, national chain
store; a smaller, regional chain store; an autonomous retailer; or a franchisee.
2. Pricing philosophy: Stores are usually either discounters or full-price retailers. Within the
“discounter” group, there are numerous subcategories such as factory outlets, shipment
stores, dollar stores, specialty discount stores, warehouse membership clubs, and so on.

3. Product assortment: The extent and depth of product lines carried by the store depends a
lot on its possession. An Ann Taylor store, for instance, sells Ann Taylor branded clothing—
not much width of product line there, but widespread depth in that line. A Kmart, on the
other hand, carries thousands of brands, but possibly does not have much depth (not many
brands) in any given class of product.
4. Service level: The more exclusive or specialized the store, the more kinds of services it will
usually propose—from a name-branded credit card, to on-site alterations, to moderate
return policies for its loyal customers. With the “big box” discounters, on the other hand,
customers pay for ease and bypass conventional service, by bagging their own groceries
and the like.

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