Special characteristics of retailing

the special characteristics of retailing are mentioned and elaborated in the document

1. Special characteristics of retailing
Meaning and Definition:
The word ‘Retailer’ had been derived from the French word ‘Re-tailer’ which means ‘to-
cut again’. Obviously then, retailing means to cut in small portions from large lumps of
goods. A retailer is last middlemen in the chain of distribution of goods to consumers. He
is a link between the wholesalers and the consumer.
The American Marketing Association defines retailing as “the activities involved in
selling directly to the ultimate consumer for personal and non-business use. It embraces
direct-to-customer sales activities of the producer, whether through his own stores or by
house-to-house canvassing or by mail-order business. The retailer is an intermediary in
the marketing channels and is a specialist who maintains contact with the consumer and
the producer and is an important connecting link in the mechanism of marketing.
Characteristics of Retailing
Retailers are referred to as middlemen or intermediaries. They occupy a middle position,
receiving and gassing on products from producers and wholesalers to customers. Services
carried out by retailers are different from those of wholesalers. The characteristics of
retailers are listed below.

1. Marketing orientation: Retailing is a dynamic industry. It keeps growing by moving
retail operations into new markets. Markets are ever changing and characterized by risk
and threat. Retail marketing therefore, requires different types of decisions to be made in
the complexity of the situations.
2. Multi-channel retailing: Retailers act as a connecting link between the producers/
wholesalers and customers. Their scale of operations is tilted more to serve sophisticated
consumers. Recently, the impact of e-retailing has received considerable attention.
The success model for most retail sectors is multi-channel retailing.
a. In the extended channel of retail distribution, manufacturer, wholesaler and retailer
provide a chain of facilitating services in order to sell the right product to the final
customers.

2. b. In the limited channel, a retailer works directly with the producer.
c. In the direct channel, the product is sold direct by using direct mailing, Internet
services, telephone sales, etc. However, the traditional supply channel for retail
products is — raw materials, manufacturer, wholesaler, retailer.
3. Innovative methods of thinking and planning: Successful retailing requires
innovative methods of thinking and planning. New ideas are generated to take advantage
of opportunities or to improve existing methods of marketing. Retailers make clear
propositions of their retail offer.
4. Right environment: A retailer has to create the right environment, offer additional
advantages and value or loyalty schemes in order to ensure that the customer is offered a
comprehensive package of benefits.
5. Unique characteristics of a retailer:
i. The retailer’s interface with the customer is service-based.
ii. Retailers sell small quantities of items on a frequent basis.
iii. Customers feel comfortable as the retailers provide convenience in terms of
location of the shop, types of payment and different credit facilities for purchasing,
range of merchandise and after-sales support, etc.
iv. Retailers offer — selection an assortment of merchandise related to the target
market in order to provide choice.
v. Retailers trade with general public (whereas wholesalers may district the general
public from purchasing from their warehouses).
vi. Retailers normally charge higher unit prices than a wholesaler.
vii. A retailer’s pricing policy is simpler than that of the wholesaler.

Other characteristics of retailing are
(i) A retailer is the link between a wholesaler and the ultimate consumer and he is the
last intermediary in distribution.
(ii) A retailer buys goods from wholesaler in bulk and resells them to consumers in small
quantities.
(iii)A retailer maintains a personal contact with his customers.
(iv) A retailer makes sufficient shop display of his wares to attract customers.

3. (v) Retailers perform all the marketing functions which a wholesaler performs and in
addition emphasises on advertisement.
(vi) Retailers deal in a variety of merchandise and are often known as general merchants.
(vii) Usually retailers are classified into two major groups, viz., small scale retailers and
large scale retailers.
(vii) Retailers aim at providing maximum satisfaction to their customers in limited area.
Conclusion
Hence, a retail business endeavors to create a compelling concept against competitors.
For the characteristics of the vision to be effective, the concept must create an
emotional bond with customers. For a customer to see the value of the characteristics
of the business' appeal, he looks at what the business gives him, not what the business
put in.
Bibliography:
Retail Management: A Strategic Approach Written By Berman, Evans And Marthur