Session 9 leb

SESSION 9LEGAL ENVIRONMENT OF

BUSINESS

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RETAIL INTERMEDIARIES & THEIR FUNCTIONS

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DEALERS

Individual or firm that buys goods from a

producer or distributor for wholesale and/or

retail reselling

A dealer is a principal and not an agent

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DISTRIBUTORS

An entity that buys non-competing products or

product lines, warehouses them, and resells them to

retailers or direct to consumers

provide strong manpower and cash support to the

supplier or manufacturer's promotional efforts

usually also provide product information, estimates,

technical support, after-sales services, credit to the

customers4

WHOLESALERS

Person or firm that buys large quantity of

goods from various producers or vendors,

warehouses them, and resells to retailers

Wholesalers who carry only non-competing

goods or lines are called Distributors

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Buying Agent

Individual or firm that locates supplies at best

prices and terms, and (if required) warehouses or

consolidates them as one shipment on behalf of a

local or foreign buyer

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Selling Agent

Selling agent or sales agent

a person/firm who renders sales services to the

manufacturer or the supplier

may provide support in terms of marketing,

promotion, and other allied activities

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RETAILERSRetail : Derived from the French word

“retaillier” = to cut off a piece or to break bulk

Retailer : A business or person that sells goods

to the consumer, as opposed to a wholesaler or

supplier, who normally sell their goods to another

business

Retailing : The last stage in movement of goods

or services to the consumer8

Retailing all activities involved in the marketing

of goods and services directly to the consumers

for their personal, family or household use

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RETAILERS

Largest private industry in the world

In Western economy it accounts for 8% of GDP

Has generated a 19% return for the shareholders

between 2004 - 06 where banks generated 9% and

insurance generated 15.2% return

Largest corporation in the world – Wal-Mart

RETAIL : THE INDUSTRY

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Almost 50 retail organizations in the world

feature in the list of Fortune 500 companies.

The world over retail is not only the oldest but

also one of the most advanced user of technology.

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RETAIL : THE INDUSTRY

From customers point of view, retailer serves by

providing goods that he needs in the required

assortment and at the right place and time.

From an economic standpoint the role of a

retailer is to provide real added value or utility to

the customer.

This comes from five different perspectives

Functions of a RETAILER

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1. Provides finished goods and services in the form

that is acceptable to the customer

2. The retailer performs the function of storing the

goods, and providing us with an assortment of

products in various categories

3. The retailer creates time utility by keeping the

store open when the consumers prefer to shop

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4. By being available at a convenient location he

creates place utility

5. Finally when the products are sold ownership

utility is created

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All these are real benefits which the Retailer offers

by:

Being close to potential customers

Fully understanding the motivating factors that

drive their customers

By serving the consumers by way of functioning

as a marketing intermediary and creating time,

place and ownership utility15


The Retailer also serves the manufacturers by:

Performing the function of distributing the goods

to the end users

Creating a channel of information from

manufacturer to the consumer

By serving as a final link in the distribution chain

Recommending products where brand loyalty is

not strong or for unbranded products

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dealer distributor wholesalersbuying agents

selling agents retailers

takes the title of the goods provides credit provides manpower provides promitional support provides product info provides estimates provides technical support provides after-sales support warehousing facility upstream downstream 17

Assignment

Documents

Session 9 leb