The DAILY OBSERVER Tuesday, February 23, 2021 Page 29

Lesson 20
with
Treisa Cornwall

MARKETING CONT’D – METHODS OF RETAILING,

TERMS OF SALES AND CONSUMER ORGANISATIONS

Retailing is the distribution process that covers all activities involved directly when selling directly to
end-users, consumers. In the supply chain, retailing is the last link between the manufacturer and the
consumers. They are called intermediaries or middlemen between the manufacturer and consumers
as they aid in getting the products to consumers. The following table below outlines the most popular
methods of retailing.

METHODS OF RETAILING DESCRIPTION

Shops are retail outlets; they allow customers to have a personal interaction with products. They
Shops
include mini-marts, convenient shops and supermarkets.

These are large city-centre shops that offer a wide variety of products. They can be multiple outlets
Department stores
under one roof and have different departments e.g., Men, women, home, décor, garden etc.

Products are ordered from a catalogue. This is convenient for customers as orders can be placed
from the convenience of their homes. The products are delivered to customers’ workplace or
Mail order
home; there is the ease of returns if the business is locally based. Customers however do not get
to see/try the product before purchase and must rely solely on description seen in the catalogue.

This is an automated machine that dispenses stored products after the payment is made. It is
Vending machines convenient, opened for 24 hours seven days per week in some instances; however, it is more
expensive than traditional shops.

Products are sold via the telephone hence customers place their order using the telephone.
Tele-marketing Customers may be hesitant if they have no prior interaction with the product. Unlike e-commerce
and catalogue, the customers can interact with the salesperson.

The product is purchased from a website, orders can be placed anywhere anytime once the customer
has access to data or Wi-Fi. Payment is made for goods using a credit card or a visa debit card.
E-commerce
It may be difficult to return purchase if the product is ordered from another country. The personal
information of a customer (card number and customer contact) may be stolen by online hackers.

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TERMS OF SALE

Terms of sale include the price, quantity and quality agreed on between the seller and customer
in relation to how payment will be made. The table below outlines the varying terms of sales
used in businesses.

TERMS OF SALE DEFINITION

Cash Payment is made using cash.

The cash price for the product is broken down into several payments
Credit usually over a period of a year. The seller will make monthly payments
until the cost is paid in full.

This method is generally used for expensive items. The buyer will make a
down payment and the remaining balance is spread over a period of one
Hire purchase
year to five years. An interest rate is usually included in the balance of the
payments.

The buyer is required to make a down payment towards the purchase of

the product. The item is removed from the shelf and is secured for the
Layaway
buyer; the item becomes the property of the buyer when full payment has
been made.

This is a trade arrangement between businesses. The seller (consignor)

Consignment sells products to the purchaser (consignee) who pays only for items sold.
Over a certain period, any unsold item is returned to the seller/consignor.

Cash discount This is given by businesses to customers to encourage prompt payment.

This is the amount by which a manufacturer reduces the retail price of

a product to its customer (usually a reseller). The trade discount may
Trade discount
be stated as a dollar value ($5000 trade discount) or a percentage 5%
trade discount).

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FUNCTIONS OF CONSUMER ORGANISATION BUREAU OF STANDARDS

The Bureau of Standards is a government agency

Right which seeks to serve and protect consumers
to be
and businesses in a country. It usually falls
heard
under a specific government ministry and has
its own mandate. It is guided by laws pertaining
Right to to a particular country. In Jamaica, the Bureau
Right
consumer
to safety of Standards was established to promote
education
and encourage standardisation as it relates
to commodities, processes, and practices.
Some of the laws which the Jamaica Bureau
RIGHTS OF of Standards seek compliance with are: The
CONSUMERS
standards Act (1968), The Processed Food Act
(1959), The Customs Act (1941), The Weights
and Measures Act (1976) etc.
Right to Right
information to choose
THE OMBUDSMAN

Right The office of the Ombudsman was established

to redress
CONSUMER PROTECTION
Consumers are protected by:
Laws and regulations – these are put in place by
the government to protect the rights of consumers.
Consumer organisations – this is an organisation
that seeks to inform consumers about their rights
and responsibilities.
Government agencies – this is a body that
is enacted by legislation to protect the rights of
consumers. In the Caribbean, this takes the form
of the Bureau of Standards and the Ombudsman.
to give assistance to people who believe
they have suffered injustice at the hands
of public officers employed by government
agencies and departments. The mandate of
the Ombudsman includes:
► Responding to inquiries from the public
► Conducting a thorough, independent,
and impartial investigation of complaints
► Resolving complaint
► Providing counselling and referrals
to matters not under the purview of
the office.
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ROLE OF CUSTOMER SERVICE
Customer service plays a vital role in promoting
the sales of a business. It is highly dependent on
staff members who are well trained, professional,
and competent. When dealing with customers, it is
of utmost importance that you communicate with
them effectively as this will allow you to satisfy their
expectations. In addition, customer service helps
with coordinating the flow of goods, services, and
information to the customer.
FORMS OF CUSTOMER SERVICE
Customer service is defined as a series of activities
that cater to the customers’ needs, before, during
and after the purchase of a product. The following
outlines the varying forms of customer service.
1. Warranty – this is a written document given
to the customer/purchaser of a product
promising to repair or replace the item if it
ceases to work within a stipulated period.
2. After-sales service – this is the assistance
given to a customer after they have
purchased a product. It may take the
form of handling returns, refund and the
servicing of items under warranty.
3. Feedback – this happens when a
representative of the business/company
calls the customer after their purchase
to solicit feedback on their experience
in-store as well as their interaction with
the business.
4. Online chat – this is communicating with
the business via their website online.
Customers can speak through an online
chat where they communicate directly
with a customer service representative
in real-time.
5. Toll-free number/call centres – these are
free telephone numbers that customers
can use to get in touch with the business
for assistance.
6. Suggestion box – these are boxes
placed at strategic locations in a business.
Customers are asked to leave their
suggestions based on their experience and
interaction with the business.
7. Surveys – this is a questionnaire with short
questions asking the customer to rate their
experience with the business.
TYPES OF INTELLECTUAL PROPERTY RIGHT
Trademark: this is something that
distinguishes one company’s
product from another. It is
identified by the symbol.
Copyright: this is the protection provided
for musicians, authors
photographers, lyrics and
plays. It is represented by
the symbol ©.
Patent: this grants exclusive rights
to the production, sale and
use of something for up to
twenty years.
Industrial design: this protects the design from
being copied. It consists of
any shape, colour or pattern
that makes a product unique.
Treisa Cornwall is on the staff of
St Andrew Technical High School.
 E-mail: treisacornwall@gmail.com