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Ans.Q.1.

The various functions of Retailing arei)Providing and assortment of products/serveces-All retailers offer an
assortment of product,supermarket provide an assortment of food,health and
beauty care products and household products,while the limited stores may
provide an assortment of clothing and accessories.
ii)Breaking bulk- Manufacturers and wholesalers typically ship large cartons of
product to reduce transportation costs.Retailers then back the combination of
huge quantity of products and offer then in smaller quantities to the consumers
according to their cnsumption patterns.It is called breaking the bulk.
iii)Holding inventory-Cosumer keep a small inventory of products at home and
purchase from retailers as and when they need more.By maintaining an
inventory,retailers provide a benefit to consumers, they reduce the consumers
cost of storing products.
iv)Providing services-Retailers provide services it easier for customers to buy
and use the products.Providing product guarantees, after sales service and
dealing with consumers complaints.
v)Acting as channel of comunication-Retailers act as a channel of
comunication and information between the wholesalers or suppliers and the
consumers.Manufacturers learn from retailers about the sales forecasts,delivery
delays and customers complaints.
vi)Transporting and advertising-Small manufacturers use retailers to provide
assistance with transport,storage,advertising and pre payment of merchandise.
vii)Increasing the value of products and services-The retailer serves goods
from the customer point of view,he needs in the required assortment,at the
required place and time.
viii)Providing promotional support-The retailer serves the manufacturers by
acting as a final link in the distribution chain andcreating and managing a
channel of information from manufacturer to consumer.

Ans.Q.2.Retail Marketing Mix-Finding the correct marketing mix is a


important part of positioning the retail outlet is distinguish from the
competitors.Retail marketing mix is the term used to describe the various
elements and methods required to formulate and execute retail marketing
strategy,retail managers must determine the optimum mix of retailing activities
and cordinate elements of the mix.The mix may vary greatly acording to the
type of market,the retailer and the type of product/serves.
Some of the major marketing mix followed by the modren retailers-

Promotion-It is main elements of retail marketing mix.The product and services


the stores offers to the customer.Product are termed as merchandise.The
different products,the store offers is termed as merchandise mix.
Price-It is a integral part of retail marketing mix.The organisation decides to
follow depends on the customer profile is target segment for its product range by
price policy.Pricing decesion has gained importance todays customers.
Place-Location decisions have strategic importance because used to develop
sustainable competitive advantage.Best location is most attractive to the
customers.competitors can not easily copy this advantage.
Promotion-The advertising budget,sales promotions,publicityand public
relations play a very important role in the competitive world of retailing.Retailers
develop a cmunication strategy in line with target market and the products
stock in the store.
Presentation-The merchndise is presented at the store is very important.Visual
merchandise is the orderly ,systematic and intelligent way of putting stock is
display in the retail store.
Customer service-The most ingrediant is customer service to build a long term
reletionship with customers.The credit policies,product return policies need to be
clear.
People-The employees can play a major role in diffrentiating a retailers offers
from its competitors.The people who work at the front end of the retail
organisation are very important,they are face of the organisation.Their
attitude,behaviour,manners and product knowledge play a very important role in
building long term relations with the customers.

Ans.Q.3.There are three stage involved in merchandise


planningSTAGE-1.Developing sales forecast-Sales forecasting is based on the target
and inputs given by the top management.It enables to detrmine the inventory
needs for a particular product orcategory.A good model of sales
forecasting,answer the following questions.
i.How much of each product needs to be purchased? ii.Should new product be
added to the asso merchandise assortment? iii. What price should be charged
for the product?
Usually a forecast is make for specific period of time.It is to be week or season or
a year.Product group to beware of the change in test attitudes ofconsumers,the
size of the target market.
Process of developing sales forecast
i.Reviewing past sales-Review of past sales helps in understanding the pattern
or trend in sales and helps in the projection of sales figuers for the future period.

ii.Analysing the changes in economic conditions-It has a direct link to


consumer spending patterns,economic slow downs,increase in employment
levels.
iii.Analysing the changes in the sales potentials-It is essential to relate the
demographic changing in the market of the store and the products to be sold.
iv.Analysing the changes in the marketing strategies for the retail
organisation and the compitition-The key factor needs to considered
forecasting sales is the market strategy to be adopeted when the same strategy
has been adopted by the same competitor.

STAGE-2.Determining merchandise requirementi.Creation of merchndise budget- Earmarketing of merchandise budgets is


considered to be vital component of the planing phase.
ii.Assortment plan Planning merchandise assortment is a significant part of
retailers financial
success.The retailer begins the task of selecting WHAT TO BUY which is the
biggest challenge a retailer faces in his day to day life.

STAGE-3.Merchandise inventory,using any one of the following four


methods:
i.Basic stock method-In this method minimum amount of stock to be
maintained in the retail store at all times.This is follow in the time of low sales.
ii.The percentage varriation method-This method is used when the stock
turn over rate is more than six times in a year.
iii.Stock to sales ratio method-It involves the maintaining of the inventory
levels at a specific ratio to the sales.This ratio find the retailer how much
inventory is needed at the begining of the month to support the months
estimated sales.
iv.Stock turnover method-The stock turnover rate measure the speed at the
stock moves in and out of the retail store for a given period.The time period for
such calculation is usually six month or year.Stock turnover rate is a tool which
mesures the efficiency of the management of stocks.