RETAIL IN THE BUSINESS MARKET

Saeed Almazroui
 IMPORTANCE OF RETAIL INDUSTRY

Why retailing is so important in

the business market?
 IMPORTANCE OF RETAIL INDUSTRY

• Impact on the economy

• Retail is how producers of goods and services get their products to the consumer. Retailers often get their goods directly from
the manufacturer. That is when a commodity becomes a finished product.
• In the U.S. retail industry generated $1.14 trillion in value-added = That’s 5.9 percent of U.S. gross domestic product.
• Employment: Retailers create 4.8 million jobs.
• Customer Convenience: Perhaps the most important role of bringing the ready to be consumed goods to the
doorstep of the consumer is performed by the retail community. Consumers benefit from retailing as retailers
perform marketing functions that makes it possible for customers to have access to a broad variety of products and
services.
• Accessibility: Products and services have no value for consumers until they are acquired and used by the customers.
Retailers acquire products and services from different places and. assort them at a single point as per the needs of the
consumers and thus facilitate customers' access.
 IMPORTANCE OF RETAIL INDUSTRY

• Convenience of Size: Retailers break bulk and serve the products in quantities and sizes as desired by the customer.
For example, shampoo is available in small sachets. The retailer helps consumer by providing appropriate products,
service and advice in the packing and quantities desired by them.

• Supply Chain: Retailers are part of an integrated system called the supply-chain. A retailer purchases goods or
products in large quantities from manufacturers or directly through a wholesaler, and then sells smaller quantities to
the consumer for a profit. Retailers provide the vital link between producers and ultimate consumers.

• Value Chain: When consumers purchase goods, retailers must order more goods to replenish their stock. In turn,
factories must manufacture the goods for the retailers. The factories then purchase more raw materials to use to
manufacture more goods. This is how consumer spending is able to drive much of the economy.

• Research & Information: The retailer provides useful information across the supply chain. He informs and educates
customers about product features and benefits. Retailers provide information to consumers through advertising,
displays and signs and sales personnel. Retailers also provide feedback about consumer requirements to the
manufacturers and wholesalers which help them in planning production and supply.
 RETAIL MARKETING MIX

Marketing is an
underlying philosophy
that guides business
activities, but how does a
retailer do marketing?
 THE FOUR P’S OF RETAIL MARKETING
MIX

• PRODUCT: According to many retailers, the product is the most important

element of the retail mix. Selecting what to sell, making the right purchasing
decisions, organizing stock management and arranging how to display product
ranges is so fundamentally important to retail management. However,
considered by many retailers to be of equal importance is price.
 THE FOUR P’S OF RETAIL MARKETING
MIX

• PRICE:
 THE FOUR P’S OF RETAIL MARKETING
MIX

• PLACE:
Place considerations involve decisions concerning the distribution channels to be
used and their management, the locations of outlets, methods of transportation
and inventory levels to be held. The objective is to ensure that products and
services are available in the proper quantities, at the right time and place.
 THE FOUR P’S OF RETAIL MARKETING
MIX

• PROMOTION:
Retailers constantly communicate with their customers using a variety of
methods and approaches. Retail promotions involve the management of elements
of the promotional mix, which include advertising, sales promotions, digital and
direct marketing, personal selling, sponsorship and public relations.
 REFERENCES

• Retail marketing. (n.d.). Retrieved from https://www.open.edu/

• Amadeo, K. (n.d.). The Retail Industry and Its Impact on the Economy.
Retrieved from https://www.thebalance.com/
• User, S. (n.d.). Importance of Retail Industry. Retrieved from
http://www.technofunc.com/