Retail Management by ProfessorBurgerQueen
The Role Of Retailing
- Retailing is the business activities or steps required to sell goods or services to final
consumers for use or consumption by themselves, their families or their households.
- A retailer is a business that focuses its marketing efforts on final consumers with the
intention of selling goods or services to them, in a shop, online, by mail, over the
telephone, from door to door or a vending machine.
Functions of Retailing
1) Provision of a link between consumers and manufacturers or producers.
2) Functions performed in the marketing channel.
3) Ability to create an image conducive to enhancing the marketing of a good or service.
- The typical discrepancies that retailing overcomes:
- Spatial gaps
- Time gaps
- Quantity and assortment gaps
- Ownership gaps
- Information gaps
- Value gaps
- Spatial gaps
- Result from producers and consumers operating in different geographical
locations.
- Selling products at locations which can be conveniently reached. ie. online,
expansion of chain retailers in rural & townships.
- Time gaps
- Result from differences in production and consumption times
- Producers of fruit and vegetables have a limited time to produce but
consumers want to consume them over a longer time eg.seasonal fruits.
- Assortment gaps
- Manufacturers narrow down product lines to achieve economies of scale
- Consumers prefer a wide selection of products, retailers offer greater variety
- Bulk breaking - buying in large quantities and selling small quantities
The Role Of Retailing
- Retailing is the business activities or steps required to sell goods or services to final
consumers for use or consumption by themselves, their families or their households.
- A retailer is a business that focuses its marketing efforts on final consumers with the
intention of selling goods or services to them, in a shop, online, by mail, over the
telephone, from door to door or a vending machine.
Functions of Retailing
1) Provision of a link between consumers and manufacturers or producers.
2) Functions performed in the marketing channel.
3) Ability to create an image conducive to enhancing the marketing of a good or service.
- The typical discrepancies that retailing overcomes:
- Spatial gaps
- Time gaps
- Quantity and assortment gaps
- Ownership gaps
- Information gaps
- Value gaps
- Spatial gaps
- Result from producers and consumers operating in different geographical
locations.
- Selling products at locations which can be conveniently reached. ie. online,
expansion of chain retailers in rural & townships.
- Time gaps
- Result from differences in production and consumption times
- Producers of fruit and vegetables have a limited time to produce but
consumers want to consume them over a longer time eg.seasonal fruits.
- Assortment gaps
- Manufacturers narrow down product lines to achieve economies of scale
- Consumers prefer a wide selection of products, retailers offer greater variety
- Bulk breaking - buying in large quantities and selling small quantities
