CHAPTER 9

SERVICES OF RETAILER TO MANUFACTURER AND WHOLESALER

HELP IN DISTRIBUTION OF
GOODS:

Retailers provide access to the market

to manufactures and wholesalers
through distribution of goods to the
final consumers, who may be
scattered over a large geographic area.
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PERSONAL SELLING:
The sale of consumer goods generally
requires personal selling efforts.
Retailers relieve the manufacturers and
wholesalers from such efforts by
making individual sales to consumers in
small quantities.
ENABLING LARGE-SCALE OPERATIONS:

Retailers relieve the wholesalers and manufacturers from retail botherations of making
individual sales to consumers in small quantities. It enables them to operate at large-
scale and concentrate on other essential activities
COLLECTING MARKET INFORMATION:

As retailers are in direct contact with their

customers, they provide valuable and reliable
market information to wholesalers and
manufacturers about the taste, preferences and
attitudes of customers.
Help in Promotion:

The manufacturers and wholesalers undertake

various promotional activities in order to increase
the sale of their products, like advertising the
products or offering incentives such as coupons,
free gifts, etc. Retailers participate in these
activities in various ways and help in promoting
the sale of the products.
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SERVICES TO CONSUMERS
Regular Availability of Products:
Retailer holds stock of various goods produced by different manufacturers and
is prepared to sell the goods in small quantities to the customers. It enables the
buyers to choose the products as per their tastes and to buy them as and when
needed.
NEW PRODUCTS INFORMATION:

Retailers make effective display of new products

and provide significant information (like features,
price, etc.) about such products to the customers.
It helps the customers in their decision-making
process for the purchase of those goods.
CONVENIENCE IN BUYING:

Retailers offer great convenience to the

customers in buying small quantities of
products according to their requirements.
Retail shops are usually situated hours near to
the residential areas and remain open for long.
WIDE SELECTION:

A retailer keeps stock of large variety of goods

of different manufacturers for the satisfaction
of the customers. It enables the consumers to
make choice out of wide selection of goods.
PROVIDE CREDIT FACILITIES:

Sometimes, retailers also sell goods to their

regular and reputed customers on credit basis.
It enables the customers to increase their
consumption level and standard of living.
 ASSIGNMENT
1. The sale of consumer goods generally requires _______efforts.

2. Retailers offer great _______ to the customers in buying small quantities of products
according to their requirements.

3. Retailer holds stock of various goods produced by different manufacturers and is

prepared to sell the goods in small quantities to the customers. True/False

4. As wholesalers are in direct contact with the customers, they provide valuable and
reliable market information to manufacturers. True/False

5. How does retailers help consumers in improving their standard of living?