What are the functions performed by retailers?

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Functions of retailers
1. Function of breaking bulk
2. Function of creating place utility
3. Stocking Varieties of goods
4. Providing credit facilities to customers
5. Providing information to customers and wholesalers
6. Estimating the demand and arranging the purchase of the product
7. Acting as consumer’s agent
8. Marketing functions
9. Connecting link

Estimating the demand: The work of the retailers, whether big or small, is to make an estimate regarding the demand for various products.

Procurement of goods: Many retailers have to buy goods from various wholesalers as they deal in a variety of products. Retailers should purchase goods from those wholesalers who provide goods best suited to the consumers in terms of price and quality.

Transportation: Retailers should arrange proper transport in order to carry the goods from wholesaler’s place to their own place. If the retailers place an order with the salesmen of wholesalers, then it is the duty of the wholesalers to make the arrangements for the delivery of goods.

Selling: The most important function of retailers is to sell the products to ultimate consumers. In order to make them regular and potential buyers, retailers should deal with them in a polite and tactful manner. It is the duty of the retailers to satisfy the needs and preferences of various types of customers.

Risk-bearing: As retailers keep the goods in stock, they have to bear the risk of loss occurring due to fire, theft, deterioration of quality etc. Large retail stores usually protect themselves from theft or fire by getting insured. The losses that occur due to damage or deterioration of quality due to improper storage cannot be incurred.

Storing goods: Proper storage facilities should be there so that the products reach the consumers on time. The goods should be displayed on shelves or in show cases so that consumers can select the goods of their choice.

Image: Retail Marketing – Functions of Retailers

The term retailing is derived from the French word “retailer” which means ‘a piece of‘ or ‘to cut up‘. This implies the breaking of bulk quantities of the retailer. The retailer acquires large quantities of the products and cuts them up into smaller quantities and sells them to individual consumers. However, a comprehensive retail marketing function requires a combination of many activities.

Functions of retailers

Generally, retailers are involved in the following functions:

1. Function of breaking bulk

Retailers break up large quantities into smaller units such as individual canes, bottles, packets, appropriate for consumer use.

2. Function of creating place utility

Retailers create place utility by transporting goods to the point of consumption.

3. Stocking Varieties of goods

Retailers buy varieties of goods from various manufacturers or wholesalers. Thus, a retailer provides a wide range of choice enabling the consumers to select the products of their choice.

4. Providing credit facilities to customers

Retailers grant credit facilities to consumers and thus increase their short-term purchasing power.

5. Providing information to customers and wholesalers

Retailers act as a link between the buyers and wholesalers / manufacturers. In the distribution channel, retailers are in direct contact with customers. Retailers supply market information to manufacturers either directly or through wholesalers.

6. Estimating the demand and arranging the purchase of the product

Retailers create demand for products by communicating with their customers. This demand creation is quite helpful for manufacturers and wholesalers.

7. Acting as consumer’s agent

The retailers anticipate the wants of the consumers and then supply them the right kind of goods at a reasonable price. Their job is to make the consumer’s buying as easy and convenient as possible.

8. Marketing functions

Retailers perform several marketing functions such as sales promotion, advertising and point of purchase display. They induce customers to buy products of reputed companies.