session 9 leb
TRANSCRIPT
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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
Unlike a distributor, a dealer is a principal and
not an agent
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DISTRIBUTORSAn entity that buys noncompeting 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 customers
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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 consumer
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Retailing all activities involved in the marketing
of goods and services directly to the consumers
for their personal, family or household use
RETAILERS
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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.
RETAIL : THE INDUSTRY
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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
Functions of a RETAILER
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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
Functions of a RETAILER
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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 utility
Functions of a RETAILER
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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
Functions of a RETAILER
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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