Retail Marketing: Introduction, Importance, Functions and Benefits

 1. Introduction to Retail Marketing:

Retailer is the person or institution who delivers goods to final consumer in the channel of distribution. Goods and services are created for consumption and use by people, it is retailer who assumes the role of taking the goods to its final destiny of consumption.

The word retail is derived from the French word Retailer, that is to cut a piece, a break down. A retailer buys in large quantity from the middleman or manufacturer and breaks the bulk in small quantity, sells or markets them in small quantity to meet the needs of customers.

He acts as a link between manufacturer or middleman and consumer. He delivers the product or service in a form, size, that is acceptable to final consumer. Retailer is described as merchandising arm of manufacturers or a neck in the bottle of distribution.

Retail as trade has developed over the period of time, from un organized street vendor or seller like ‘SUBJIWALA’, PAANAWALA to organized shops like super bazaars, Departmental stores. Today we see revolution in the field of retail business with entry of firms like ‘Big Bazar’ ‘More’ McDonald, Walmart that are not just delivering goods, but also satisfying needs and wants of people there by ensuring customer -delight. Retailing has developed as a more organized activity adopting functions of marketing in distribution of goods or service.

Retail marketing is application of marketing functions in distribution of goods to the customers. Organized retail is not just selling of goods, it embraces activities of marketing like grading packing, promotion and advertisements and show casing variety of goods, at reasonable price with offers like discount, credit. Retail Marketing provides convenience, comfort in shopping in place or medium that is convenient to the consumer.

Retail and marketing are two different concepts, whereas retail is selling in small desired quantity to the people, marketing includes set of functions like transportation banking, insurance, warehousing and promotion. The main purpose is to deliver the goods to the people that can result in customer satisfaction.

Goods are created for consumption and satisfaction and it is made possible through the system of marketing. The present retail business of delivering goods or service to the people is not a mere sale activity, it is a marketing activity, where in there is value addition.

People are given the choice of selecting goods of their desire or dream. It is delivered in style and comfort. One can get the feel and experience of retail marketing by visiting modern shopping malls like Walmart, Big-Bazar, More, Reliance fresh in case of goods or visiting a new generation bank like ICICI, HDFC. The presentation of product, the environment and decoration inside the shop, display of price, facilities inside are an indicator as to how goods are marketed in organised retail.

Definitions:

The concept of retail marketing in WIKIPEDIA is given as “Sale of goods or merchandise from fixed location such as Department store, Boutique, KIOSK or by post in small or individual lots for direct consumption by purchase”

The goods or service delivered for final consumption in convenient lots through different forms of organisations.

American Marketing Association – outlined “Retailing consists of activities involved in selling directly to ultimate consumer for personal or non-business use. It embraces the direct to customers sales activities of the producer, whether through his own store, by house to house counseling or mail order business”.

As per the definition any one i.e., manufacturer or middlemen or retailer selling directly to the final customer through any kind of sales outlet is doing the business of retailing.

The marketing guru has said all activities in selling goods or service directly to final consumer for personal or non-business use is retailing or retail marketing.

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