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Assignment MK0012 ( Set 1 & 2)

Assignment MK0012 ( Set 1 & 2)

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Published by wasimsiddiqui03
Assignment Set- 1
Q.1 a. What is retailing? What is its importance? Ans.: Retailing is not only an important aspect of the economic structure but very much a part of our lies. Although trading of goods has been in existence since human civilization days, it is only in the recent past that the buying and selling of goods have become more of a formal and brand dominated activity. In fact, today retailing is evolving into a global, high-tech business. Nevertheless, the traditional forms of independ
Assignment Set- 1
Q.1 a. What is retailing? What is its importance? Ans.: Retailing is not only an important aspect of the economic structure but very much a part of our lies. Although trading of goods has been in existence since human civilization days, it is only in the recent past that the buying and selling of goods have become more of a formal and brand dominated activity. In fact, today retailing is evolving into a global, high-tech business. Nevertheless, the traditional forms of independ

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Assignment Set- 1
Q.1 a.What is retailing? What is its importance?Ans.:
 
Retailing
is not only an important aspect of the economic structure but very much a part of our lies. Although trading of goods has been in existence since human civilization days, it is onlyin the recent past that the buying and selling of goods have become more of a formal and branddominated activity. In fact, today retailing is evolving into a global, high-tech business.Nevertheless, the traditional forms of independently owned small businesses co-exist along withthe organized retailers like department stores, specialty stores, shopping malls etc.Organized retailing has emerged in a big way since 2000 onwards and with it; we are witnessingthe emergence of new forms of retailing. The retailers market can be segmented ion the basis of various retail formats and led to the development of a very complex retail environment.
Importance of Retailing
The word RETAIL is derived from French word
retailer 
,
meaning „to cut a piece off or „to break
 bulk.
Retail trade may be defined as, “A trade, which consist of selling to ultimate consumers of avariety of products in small lots”. It is exactly and literally so and is meaningful that retail trade isthat cuts off smaller portions from large lump of goods. From the bulk of products procured by thewholesaler, small lots are cut and distributed through retailers. Retailers are the last link in thechannel of distribution between the manufacture and the ultimate consumer. The retail shop isone of the oldest and most widely used business establishments in any country.Retailing is defined as a conclusive set of activities or steps used to sell a product or a service toconsumers for their personal or family use. It includes all activities directly and indirectly related tothe sale of goods or services to the ultimate consumer. Irrespective of who sells, the distinction of retailing is normally made on the basis of to whom the products are sold. Retailing is subject toconstant and dramatic changes. Many forces like Social, Economical, Technological, Governmentpolicies etc. influence it.Following points highlights the importance of retailing.
Key member in the channel of distribution:
Retailer as the link in the chain of distribution performs good many functions of marketing. Thechannel of distribution goes incomplete without his contributions to make the final consumers buythe products. He acts as a catalyst agent to both the manufacturers as well as to the customers.
Buying & Assembling:
Retailer assembles products from different manufactures and wholesalers and stock wide varietyof products to meet the varied and small requirements of large number of customers. Thisassembling is possible through the process of buying variety of products from different sellers.
Warehousing:
Retailer is a safety valve for releasing the goods in quantities of different varieties and priceranges according to the consumer needs. Warehousing makes possible holding the stocks tomatch between the consumer demand and supply conditions.
Selling:
The final aim of a retailer is to sell the products so bought and held by him. Retailer is rightlycalled as the buying agent of consumers. He is the meansto dispose the goods to the consumers. Successful retailing needs good deal of salesmanshiptactics.
Risk-shouldering:
Risk shouldering is the basic responsibility of a retailer arising out of physical deteriorations andchanges in prices. These are unavoidable as he holds sufficient and variety of inventories fromthe time they are bought till they sell.
Grading & Packing:
Retailers undertake second round grading and packing activities left by the manufactures andwholesalers. As he sells in loose packs and very odd lots, packing assumes a particulaimportance.
Financing:
In successful marketing, the contribution of retailers is really worth emphasizing with consumer financing. His financing consists of credit granted on liberal terms to the consumers, investment instocks, salaries & wages and other trade expenses.
Advertising:
 
Retailers are the best agents to advertise the products and ideas. In collaboration with thewholesaler and producer, retailers do undertake shop display, distribution of sales literature,introduction of new product etc.,
Supply of Market Information:
As being in close and constant touch with consumers, he clearly keenly observes, studies theconsumer behaviour, changes in tastes and fashions and therefore demands. This collectedinformation is passed on to the wholesalers & manufacturers for their perusal.
Offer Opportunity:
Retailers give the manufacturers and producers the opportunity of presenting their products to theconsumers by providing the necessary vent and access.
Big Relief:
Manufacturers and the wholesalers are really relieved of the head braking odd jub of retailing tothe individuals in pretty small quantities.
Provision of Information:
Retailers do provide the wholesalers and manufactures the information about the latest consumer movements and consumer demand.Produce the risks of loss:Being the spokesmen of consumers, they warn the producers as to what goods to produce and inwhat quantity at what price. This makes the wholesalers to stock only those goods needed by theconsumers.
Largest Choice:
Retailers assemble products of different varieties from good many producers enabling theconsumers to have largest choice as the cost, quality, and varieties and so on.
Relief from storage:
In fact, retailers hold goods on behalf of the consumers. Being at their convenient place,consumers can have ready access suitable stock at suitable lot. By this he helps them in reducingtheir capital lock-up.
Extra service:
Many retailers grant extra concessions and facilities such as door delivery, telephone orders,credit sales, return or replacement of goods not found suitable by consumers etc.,
Supply of Information:
Retailer is an expert adviser to consumer as help them in deciding about the product choice. Heintroduces new products that are superior to earlier models thus improving customer satisfaction.Retailing as one of the important sectors for the growth of economy plays a key role in building anation to self-sufficiency state. Following key elements explains the importance of retailing to thenation.
Rapid economic growth:
India’s GDP growth of 9.4 per cent in 2006-07 is the highest posted for over 18 years, reflectingthe booming economy of the country. Growing in tandem with the economy is the Indian retailsector. Retail is one of India’s largest industries, contributing to about 10 per cent of the GDP andproviding employment to 8 per cent of the nation’s workforce. The sector is on a high growthtrajectory and is expected to grow by more than 27 per cent over the next 5 to 6 years.
 
Generates employment opportunities:
It offers maximum employment opportunities for people living in a nation. In India, the youthpopulation is more interested pursuing their career in this field. Survey shows in India that 60% of population of age group (15-60) are engaged in this activity.
Potential untapped Markets:
Growing trend of consumerism in has led to the emergence of cities and small towns add to themarket attractiveness. Pantaloon Retail India Limited, one of India’s retail giants captures a mere0.3 per cent of total market; compared to Tesco Plc, which captures 14.3per cent of England’smarket and Wal-Mart which captures 20 per cent of USA’s market; giving an insight into the largeuntapped market potential.
Cash & Carry wholesale trading:
Big retail outlets also perform the functions of a wholesaler by selling products both in bulk and insmall quantities. This leads to larger sales transactions which results in large money flow into theeconomy. Since these giant retailers have wider assortment and variety, they can cater to theneeds of every customer who visit their shop and also influence them on impulsive buying.
Indian Retail Sector:
Indian retail business promises to be one of the core sectors of the Indian economy, withorganized retail sector estimated to grow by 400 per cent of its current size by 2007-08.India is expected to be among the top 5 retail markets in the world in 10 years. The growth andpotential of the sector is being widely acknowledged both in the domestic as well as internationalforums. India topped AT Kearney’s Global Retail Development Index 2007 for the thirdconsecutive year, retaining its position in the global market as the most preferred retaildestination amongst emerging markets.For the fifth time, India also topped the Global Consumer Confidence Index June 2007conducted twice a year by The Nielsen Company. Indians were judged the world’s most optimisticconsumers, with large sections of the population considering “now” a good time to spend. Totalestimated investment opportunity of US$ 5-6 billion in next five yrs.
b. Identify some of the general characteristics of a retail consumer.Ans.:
 
Consumer buying behaviour refers to the buying behaviour of the ultimate consumer.Consumer behaviour is the study of how consumers make decisions to use their respectiveresources such as time, money and effort for buying, suing and disposing goods and services.The behaviour of humans is very complex in nature. Marketers understanding of he drivers of consumers buying behaviour will help them to serve their customers effectively and efficiently andattract new customers.In the retailing context, marketers are required to understand customers shopping behavior whichincludes decision variables regarding among other things, brand selection, shopping timing, andchoice of retail format and store. Consumers shopping behaviour is understood by analyzing thefactors that affect behaviour. These factors could be demographic, psychological, environmentalor related to the lifestyle of the customer. It is equally important for the retailer to identify thevarious stages in the consumer decision-making process and the major influences at each stage.This would make possible an effective retail marketing strategy.In the retail context, marketers would be specifically be more interested to know about theconsumers shopping behaviour, which involves an understanding of decision variables regardingwhen, where and what to shop i.e. shopping timing, choice of retail format and store etc. suchdecision variables are the factors to be considered by the retailer while taking decisions regardingthe understanding consumer behaviour.For instance, in case of pickle, marketers will be interested in finding out the type of pickleconsumers intend to buy (single vegetable/fruit or mixed, spicy or not, oily or dry, veg. or non-veg), the brand preference (national, private, generic), the reason for using (to add taste, for foodpreparation, to eat along with snacks), the place of purchase (Super bazaar, convenience store,vendors, home made), and frequency of purchase (weekly, fortnightly, monthly). On the basis of various alternatives to consumer needs, marketers evolve the best possible marketing mix to

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