Internal trade

internal trade for PUC-1

1. Good Morning

2. Internal Trade

3. Trade : Trade refers to buying and selling of goods for earning profit. Internal : Any thing which have certain limits.

4. Introduction : On the basis of geographical location of buyers and sellers trade can be classified i.e. Internal Trade External Trade

5. Internal Trade : Buying and selling of goods and services with in the boundaries of a nation are referred as internal trade (or) Domestic Trade (or) National Business (or) Home Trade. External Trade : The business activities take place across the geographical boundaries is called External (or) International Trade.

6. Internal Trade Wholesale Trade Retail Trade Itinerant Retailers Fixed Shop Retailers Peddlers Hawkers Market Traders Street Traders Cheap Jacks A

7. A Small Shop Keepers Large Retailers General Store Specialty Shops Street Stall Holders Second Hand Goods Shops Departmental Stores Super Market Chain Stores Malls MOB Consumer Co-op Stores

8. Wholesale Trade : Wholesale trade refers to buying and selling of goods and services in large quantities for the purpose of resale or intermediate use. In other words wholesaler is a person who buys goods from producer in bulk quantities to a retailer.

9. Functions of Wholesaler Wholesaler enables the producer to reach large number of buyers spread over a wide geographical area through retailers. They generally take the tittle of the goods and bear the business risks by purchasing and selling the goods in their own name. They purchase in bulk and sell them in small quantities to retailers. They undertake various activities such as grading of products, packing into small lots , storage, transportation , promotion of goods, collection of market information, collection of small and scattered order of retailers and distribution of supplies to them. They also relieve the retailers of maintaining large stock of articles wholesalers helps in equalization of prices between places and times.

10. Services of Wholesalers to Manufactures Facilitating Large Scale Production Wholesaler collects small orders from a number of retailers and passes on the pool of such orders to the manufactures and make purchases in bulk quantities. This enables the producers to undertake production on large scale and take advantage of the economies of large scale.

11. Services of Wholesalers to Manufactures Facilitating Large Scale Production Bearing Risk The wholesale merchant deal in goods in their own name take delivery of the goods and keep the goods purchased in large lots in their warehouses. In this process they bear variety of risks such as the risk of fll in prices, theft, pilferage, spoilage, fire etc.,

12. Services of Wholesalers to Manufactures Facilitating Large Scale Production Bearing Risk Financial Assistance The wholesalers generally make cash payment for goods purchased by them. Sometimes they also make advance money to producers for bulk orders placed by them. This help the manufacturers for their funds.

13. Services of Wholesalers to Manufactures Facilitating Large Scale Production Bearing Risk Financial Assistance Expert Advice As the wholesalers are in direct contact with the retailers they are in position to advice the manufactures about various aspects including customers taste and preferences, market conditions, competitive activities and the features prefered by the buyers.

14. Services of Wholesalers to Manufactures Facilitating Large Scale Production Bearing Risk Financial Assistance Expert Advice Help in Marketing Functions The wholesalers take care of the distribution of goods to a number of retailers who in turns sell these goods to large number of customers spread over a large geographical area. This relives the manufacturers from many of the marketing activities and enables them to concentrate on the production activity.

15. Services of Wholesalers to Manufactures Facilitating Large Scale Production Bearing Risk Financial Assistance Expert Advice Help in Marketing Functions Facilitates Production Continuity The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced and storing them till the time these are demanded by retailers or consumers in the market.

16. Services of Wholesalers to Manufactures Facilitating Large Scale Production Bearing Risk Financial Assistance Expert Advice Help in Marketing Functions Facilitates Production Continuity Storage Wholesalers take delivery of goods when these are produced in factory and keep them in their godwons/ warehouses. This reduces the burden of manufactures of providing for storage facilities for the finished products. Thus they provide time utility.

17. Services of Wholesalers to Retailers Availability of Goods Retailers have to maintain adequate stock of varied commodities so that they can offer variety to their customers. They provide the different products various manufactures readily available to the retailers. This relives the retailers of the work of collecting goods from producers and keeping big inventory of the same.

18. Services of Wholesalers to Retailers Availability of Goods Marketing Support The wholesalers perform various marketing functions and provide support to the retailers. They undertake advertising and other sales promotional activities to induce customers to purchase the goods. It is benefitted to the retailers to increase the demand for various new products.

19. Availability of Goods Marketing Support Grants of Credit Services of Wholesalers to Retailers The wholesalers generally provide credit facilities to their regular customers. This enables the retailers to manage their business with relatively small amount of capital/ working capital

20. Services of Wholesalers to Retailers Availability of Goods Marketing Support Grant of credit Specialized Knowledge The wholesalers specialize in one line products and know the pulse of the market. They pass on the benefit of their specialized knowledge to the retailers.

21. Services of Wholesalers to Retailers Availability of Goods Marketing Support Grant of credit Specialized Knowledge Opportunity to get new goods The wholesaler brings to the notice of the retailers the new type of goods that are produced by the manufacturer. This give opportunity to get new types of goods for expanding their business.

22. Services of Wholesalers to Retailers Availability of Goods Marketing Support Grant of credit Specialized Knowledge Opportunity to get new goods Risk Sharing The wholesalers purchases in bulk and sell in relatively small quantities to the retailers. They help us in purchasing small quantities. It also avoid the risk of storage, pilferage, obsolescence, reduction of cost/ price and demandfluctuations .

23. Retail Trade

24. Retail Trade Retail trade refers to sale of goods in small quantities for final consumption. Retailer: Retailer is a person who buys the goods in small lots/ large quantities from the wholesalers and sells them in small quantities to the ultimate consumers.

25. Services Of Retailers To Manufacturers & Wholesalers Help In distribution of goods As this people are scattered over different geographical areas. As he helps in the distribution of wholesalers and manufacturers products by making these available to the final consumers.

26. Services Of Retailers To Manufacturers & Wholesalers Help in Distribution of Goods Personal Selling In the process of sale Personal selling is must. As the wholesaler and manufacturer cannot communicate with the customer directly so retailer helps in this process.

27. Services Of Retailers To Manufacturers & Wholesalers Help in Distribution of Goods Personal Selling Enabling Large Scale Operations The manufacturers and wholesalers are freed from the trouble of making individual sales to consumers in small quantities. This enables the wholesaler and manufacturer relatively work on large scale operations.

28. Services Of Retailers To Manufacturers & Wholesalers Help in Distribution of Goods Personal Selling Enabling Large Scale Operations Collecting Market Information The retailer is direct touch and contact with the buyer /customer /consumer. He will be collecting the feedback of the products and help the wholesaler and manufacturer for changes in the products. He remains in important source in collecting the market information about the taste and preferences and attitude of the customer/consumer.

29. Services Of Retailers To Manufacturers & Wholesalers Help in Distribution of Goods Personal Selling Enabling Large Scale Operations Collecting Market Information Help In Promotion Time to time manufacturer and wholesaler should provide promotional activities in order to increase the sales of products.

30. Service Of Retailer To Consumer Regular Availability Of The Products This is the most important service rendered by the retailer to his customer is to maintain regular availability of the products by different manufacturers. This may help the buyer to buy different products as and when necessitated.

31. Regular Availability Of The Products New Products Information Service Of Retailer To Consumer The retailers arranges the variety products with effective display along with personal selling efforts, retailers provide important information about the products and special features for arrivals. This impacts the buyer to buy the products.

32. Regular Availability Of The Products New Products Information Convenience In Buying Service Of Retailer To Consumer As the retailer are scattered in different areas and located near by the residences it help the buyers to buy the products as and when required. As they buy in bulk quantities and sell in according to the requirement of the customer/ consumer .

33. Regular Availability Of The Products New Products Information Convenience In Buying Wide Selection Service Of Retailer To Consumer The retailer generally keeps the wide range of products of different manufacturers. Which help the customer/ consumer to make their choice among wide variety of products.

34. Regular Availability Of The Products New Products Information Convenience In Buying Wide Selection After Sales Services Service Of Retailer To Consumer Retailer provide different service to his customers after sales like free home delivery of the products, supply of spare parts, and attending the complaints. This is an important factor in the buyer’s decision for repeat purchase of the products.

35. Regular Availability Of The Products New Products Information Convenience In Buying Wide Selection After Sales Services Provide Credit Facilities Service Of Retailer To Consumer The retailers sometime provide credit facility to the regular buyers. This enables the increase of their level of consumption and there standard of living.

36. Types Of Retailer Trade Itinerant Retailers Small Scale Fixed Shops Large Scale Fixed Shops

37. Itinerant Retailers Itinerant retailers are traders who do not have a fixed place of business to operate the business.

38. Characteristics Of Itinerant Retailers The itinerant retailers may operate as regular traders throughout the year or as seasonal traders operating during a particular season. They are small traders operating with limited resources. They normally deal in consumer products of daily use such as toiletry products, fruits, vegetables, milk, glass ware etc., They give door to door delivery service to customers. They keep limited inventory of merchandise either at home or at some other place. Their prices are not fixed but are subject to bargaining. As they dispose their stock in a day or two days, generally they do not suffer from fluctuation of prices.

39. Types Of Itinerant Retailers Pedlars Hawkers Market Traders Street Traders Cheap Jacks

40. Types Of Itinerant Retailers Pedlars Hawkers Market Traders Street Traders Cheap Jacks This Retailers carry their goods/products on their head (or) back from one door to another in the streets for selling the goods/ products. Ex: Vegetables, Fruits, Flowers, Etc.,

41. Pedlars Hawkers Market Traders Street Traders Cheap Jacks Types Of Itinerant Retailers These are the people who carry their goods on back of the animals (or) by using wheeled carts from one street to another for selling the product/ goods.

42. Types Of Itinerant Retailers Pedlars Hawkers Market Traders Street Traders Cheap Jacks Market traders are the small traders who open their shops at different places on fixed days or dates.

43. Types Of Itinerant Retailers Pedlars Hawkers Market Traders Street Traders Cheap Jacks This traders are also called Pavement Vendors. This people are found in the places where huge floating population gathers, near by railway station, bustands etc.,

44. Types Of Itinerant Retailers Pedlars Hawkers Market Traders Street Traders Cheap Jacks Cheap Jacks are petty retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another depending upon the business.

45. Small Scale Fixed Shops: These are the retail shops are established in every nook and corner of most of the cities. They operate their business with small capital and small stock in a fixed place.

46. Small Scale Fixed Shops General Stores Specialty Shops Street Stall Holders Second Hand Goods Shops One Price Shops

47. Small Scale Fixed Shops General Stores Specialty Shops Street Stall Holders Second Hand Goods Shops One Price Shops General stores are commonly found in local market near by the residential areas. These shops provide basic needs(day to day needs) of the consumers residing in near by localities. Ex: Soaps, Stationary, Etc.,

48. Small Scale Fixed Shops General Stores Specialty Shops Street Stall Holders Second Hand Goods Shops One Price Shops The retailer store is specialised in the sale of specific goods / products. Ex: Garments, Textiles, Toys and Gifts, Etc.,

49. Small Scale Fixed Shops General Stores Specialty Shops Street Stall Holders Second Hand Goods Shops One Price Shops They are situated in the corner of the street they deal in low price articles like Soft Drinks, Cookies, Etc.,

50. Small Scale Fixed Shops General Stores Specialty Shops Street Stall Holders Second Hand Goods Shops One Price Shops These shops generally sell used goods like books, furniture, automobiles, Etc.,

51. Small Scale Fixed Shops General Stores Specialty Shops Street Stall Holders Second Hand Goods Shops One Price Shops These are the shops were sell different products at one price. They sell daily usable unbranded items like gift items, toys, Etc.,

52. Large Scale Fixed Shops Large Scale Fixed Shops are started with a large capital, located in important places and markets and towns and cities.

53. Types Of Large Scale Fixed Shops Departmental Stores Super Market Malls Chain Stores Or Multiple Shops Mail Order Business House Consumer Co-operative Stores

54. Departmental Stores Departmental Stores are a fixed shops which sells different kinds of goods under different departments in a single building, there may be separate departments for medicines, furniture, textiles and elctronics etc., Ex: Spencer

55. Features of Departmental Stores The modern departmental stores provide all facilities such as travel enquiry, rest rooms, information bureau, and restaurant etc., These are generally located in the hot/ centre of the city which caters to a large number of public. They try to provide maximum services to high class of customers whom the prices are secondary. The size of these stores are very large. These stores are generally formed as a joint stock company managed by the board of directors. They assist managing directors and general manager and departmental managers. Departmental stores combines both the functions of retailing as well as warehousing. Purchase of these stores are done directly with producer itself and operate separate warehouse. They have centralized purchasing arrangements. The purchases in a departmental store are made centrally by the purchase department of the store, where as sales are decentralized in different departments.

56. Super Markets A super market is organised on departmental basis where customers can buy various types of goods under one roof Ex: Food World, More, Reliance Fresh, Etc., Features Super Market generally consists of complete line of food products (like groceries, ready to eat, and snacks etc.,) in addition to non-food items convenience goods. Buyers can purchase different kinds of products of different producers as per their requirements under one roof in such markets.

57. Super market operates on the principle of self service. This helps them to reduce the cost of distribution. The goods are sold on cash basis only. Super markets are generally located at central location to secure high tomorrow. Prices of the products are generally lower than other types of retailers because of bulk purchasing, lower operational cost, and low profit margins.

58. Malls It is a mercantile establishment consisting of a carefully landscape complex of shops representing leading merchandise. In other words a shopping mall is a building comprising of different stores and outlets the sell their individual products to the consumers.

59. Features: The consumer can be able to get all general purpose products in malls, provided by the different reailers so he can, compare and contrast between quality and price of the products. The malls are huge shopping complexes built at places in the city center. Malls are fully air conditioned and customers find shopping an enjoyable and passionable . Each mall has adequate parking facility, restaurant and gaming's for their children's. The malls provide employment opportunities to lakhs of persons across the country. The articles are neatly displayed at appropriate places where customers can have close look of the products and check their prices on the tags of different products. Each item purchased is regularly billed properly with taxes duly charged and remitted to the government.