CHAPTER 1 -RM

• Retail Management refers to the process of promoting sales and customer satisfaction by effectively managing various aspects of a retail business.
• Retail is the sale of goods and services from a business to consumer for their own use.
• Retailer is a business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business
• Retailing is the selling of merchandise and certain services to consumers. It ordinarily involves the selling of individual units or small lots to large numbers of customers by a business setup for that specific purpose
• Retailers are the final link the supply chain between manufacturers and consumers.
• Retailing is important because it allows manufacturers to focus on producing goods.
• Store retalling This includes different types of retail stores like department stores, speciality stores, supermarkets, convenience stones, catalogue showrooms, drug stores, superstores, discount stores, extreme value stores etc.
• Non-store retailing

  A type of retailing where the transaction happens outside conventional shops or stares. It is further divided into two types - direct selling (where the company uses direct methods like door-to-door selling) and automated vending [installing automated vending machines which sell offer variety of products without the need of a human retailers).
• Corporate entailing involves retailing through corporate channels like chain stares, franchises, and merchandising conglomerates. Corporate retailing focuses on retailing goods of only the parent or partner brand.
• Internet retailing or online retailing works on a similar concept of selling small quantities of goods in the final consumer.
• Service retailing

  Retailers not always sell tangible goods, retail offerings also consists of services.
• BUYING

  A retailer buys a wide variety of goods from different wholesalers after estimating customer demand.
• SORTING

  A retailer maintains a ready stock of goods and displays them in his shop.
• SELLING

  The retailer sells goods in small quantities according to the demand and choice of consumers.
• GRADING AND PACKING

  The retailer grades the goods which are not graded by manufacturers and wholesalers.
• RISK-BEARING

  A retailer always keeps stock of goods in anticipation of demand. He bears the risk of loss due to fire, theft, spoilage, price fluctuations, etc.
• TRANSPORTATION

  Retailers often carry goods from wholesalers and manufacturers to their shop.
• FINANCING

  Some retailers grant credit to customers and provide the facility of return or exchange of goods.
• SALES PROMOTION

  A retailer displays goods. He carries out publicity through shop decoration, window display, etc
• INFORMATION

  Retailers provide knowledge to consumers about new products and uses of old products.
• STORE BASED

  Can be classified into two formats based on the basis of Ownership or Merchandise offered.
• NON STORE BASED CLASSIFICATION

  A retail organizations focus on establishing direct contact with the consumer. This may be both personal (direct personal selling) and nonpersonal TV, the Internet, mail, catalog or phone).
• SERVICE BASED CLASSIFICATION

  Such retailers specialize in providing different kinds of services to the end consumer. The services can be classified as Banking Services, Rentals, Electricity, cooking gas, etc.
• SOLE PROPRIETORSHIP

  the ownership of the business exists with a single person, usually the one who is responsible for the day to day affairs of running the business
• PARTNERSHIP

  This is also one of the most common business formats in India. In Partnership form of business, the ownership is shared between two or more people for running the business.
• JOINT VENTURE

  involves the creation of a third or a new entity due to collaboration between two or more than two parties, with an agreement to manage the business operations in a particular area by combining their resources and sharing their profits. as per the well-defined terms and conditions of the contract.
• DEPARTMENT STORE

  a set-up which offers wide range of products to the end-users under one roof. In a department store, the consumers can get almost all the products they aspire to shop at one place only.
• DISCOUNT STORE

  offer a huge range of products to the end-users but at a discounted rate.
• MART

  Wal-Mart currently operates more than 1300 discount stores in United States. In India, Vishal Mega Mart comes under discount store.
• SUPERMARKET

  A retail store which generally sells food products and household items, properly placed and arranged in specific departments is called a supermarket.
• WAREHOUSE STORES

  A retail format which sells limited stock in bulk at a discounted rate is called as warehouse store. Warehouse stores do not bother much about the interiors of the store and the products are not properly displayed.
• MOM AND POP STORE

  the small stores run by individuals in the nearby locality to cater to daily needs of the consumers staying in the vicinity. They offer selected items and are not at all organized.
• SPECIALITY STORES

  specialize in a particular product and would not sell anything else apart from the specific range Speciality stores sell only selective items of one particular brand to the consumers and primarily focus on high customer satisfaction.
• MALL

  Many retail stores operating at one place form a mall. A mall would consist of several retail outlets each selling their own merchandise but at a common platform.
• E-TAILERS

  They can place their order through internet, pay with the help of debit or credit cards and the products are delivered at their homes only. However, there are chances that the products ordered might not reach in the same condition as they were ordered. This kind of shopping is convenient for those who have a hectic schedule and are reluctant to go to retail outlets. In this kind of shopping; the transportation charges are borne by the consumer itself.
• DOLLAR STORES

  offer selected products at extremely low rates but here the prices are fixed.
• DIRECT SELLING

  It consists of making direct contact with the end consumers at home, at work, at office, or at any convenience place. Cosmetics, jewelry, garments, foods, home appliances are sold directly to customers. For example, salesmen can sell these products to consumers
• MAIL ORDER RETAILING

  Customers demand for products of specific description through mail and are delivered the products at their places.
• TELEMARKETING

  Order for the product is placed by phone and/or cell phone. Television shopping is also a type ohf telemarketing. Products are displayed and demonstrated on television.
• CYBER MARKETING OR ELECTRONIC SHOPPING

  It is also known as online or Internet marketing. Transactions are made by Internet. Full detail is placed on the web.