RETAILING

Retail

Retail comes from the Old French

word tailler, which means "to cut off, clip, pare, divide" in
terms of tailoring (1365).
o It was first recorded as a noun with the meaning of a "sale in
small quantities" in 1433 (from the Middle French retail,
"piece cut off, shred, scrap, paring").
o Like in French, the word retail in both Dutch and German
also refers to the sale of small quantities of items.

The process of selling consumer goods and/or

services to customers through multiple channels
of distribution to earn a profit.
Retailing

Philip Kotler “Retailing includes all

the activities involved in selling
goods and services to the final
consumes, for personal, non-
business use. A retailer or retail
store is any business enterprise
wholesales volume comes primarily
from retailing.
 The term "retailer" is also applied where a service provider
services the small orders of a large number of individuals,
rather than large orders of a small number
of wholesale, corporate or government clientele.
 Shops may be on residential streets, streets with few or no
houses, or in a shopping mall. Shopping streetsmay be for
pedestrians only.
Retail Management

The various processes which

help the customers to procure the desired
merchandise from the retail stores for
their end use refer to retail management.
Evolution of retail in India

Established Emerging
Traditional formats Formats
Kirana shops Exclusive retail outlets
Formats
Convenience/ Hypermarket
 Haats Internal retail
department stores
 Melas PDS/ Malls / Specialty Malls
fair price shops Multiplexes
 Mandis etc. Fast food outlets
Pan/ Beedi shops
Service galleries
 Introduction to Indian Retail
industry

 The Indian retail industry has emerged as one of the most

dynamic and fast-paced industries due to the entry of several
new players.
 It accounts for over 10 per cent of the country’s Gross Domestic
Product (GDP) and around 8 per cent of the employment.
 India is the world’s fifth-largest global destination in the retail
space.
 The Boston Consulting Group and Retailers Association of India
published a report titled, ‘Retail 2020: Retrospect, Reinvent,
Rewrite’, highlighting that India’s retail market is expected to
nearly double to US$ 1 trillion by 2020 from US$ 600 billion in
2015, driven by income growth, urbanisation and attitudinal
shifts.
The service provide by the retailer can be
classified in to three category

Self-Service

Assorted-Service

Full-Service
 Essential characteristics of
retailing

o Direct interaction with customers:

o Small purchases:
o Instrument of marketing
communication:
Types of Retailing:
Organised Type of
Retailing:
o Convenient Store
o Discount Store
o Specialty Stores
o Department Stores
o Cash & Carry
o Hyper Market/ Super Market
o Shopping Malls
Unorganized Type of
Retailing:

o Mom-and-pop stores
o Vending
o Kirana
7Ps of Retailing as
Service sector
1. Product

 ‘In marketing, a product is anything that

can be offered to a market that might
satisfy a want or need.’
 The common term for products in a retail
market is called merchandise and the
way your products are laid out refers to
merchandising.
 General Merchandisers.
 Multiple Lines Specialty Merchandisers.
 Single Line Specialty Merchandisers.
 2. price

 The pricing technique used by most retailers is cost-plus pricing.

 This involves adding a markup amount (or percentage) to the retailer's
cost. Another common technique is suggested retail pricing. This simply
involves charging the amount suggested by the manufacturer and
usually printed on the product by the manufacturer.other pricing
techniques include Market penetration pricing
strategy,High price strategy,The strategy of prices adjustment to market
conditions, Competition-oriented price strategy.
 In Western countries, retail prices are often called psychological
prices or odd prices. Often prices are fixed and displayed on signs or
labels. Alternatively, when prices are not clearly displayed, there can
be price discrimination, where the sale price is dependent upon who the
customer is.
 For example, a customer may have to pay more if the seller determines
that he or she is willing and/or able to. Another example would be the
practice of discounting for youths, students, or senior citizens.
3. Place

 Relates to where you intend on offering your

products, along with the avenues of how
people can reach you.
 This can be from a physical location to being
online or having a sales person on the road.

 Retailing is the final business in a distribution

channel.
4. Promotion

 Advertising
 Public relationship
 Personal selling
 Sales Promoting
 5. Physical evidence
o A great way to describe physical evidence is by relating it
to the material part of what the customers see.

o This can include the aesthetics of in and outside your

business, signage, uniforms, and stationery, business cards
and advertising material; along with everything else the
customer visually comes into contact with, regarding your
business.
6. People

 In Reatil people, being employees need to

be educated on the products or services
you provide, along with being able to fit
into your organisational culture that your
business has created.
 Customers have to have their needs met in
regards to getting great customer service
from your employees.
 The success of retailing is depend on the quality
of employee .
7. Process

 A service process is best described as

the activities that produce a specific
service or product for customers.

 Process must help the customers to get what

they want & it also should minimize the
purchasing time.