Question

What are the advantages of spending much money on retailer support in industry ?

Answer 1

Since question is asked in general, we can discuss it from 3 perspectives.

From the perspective of suppliers, the most valuable benefits provided by retailers are the opportunities they offer for reaching the supplier's target market, generating product demand through retail promotions, other promotional activities and providing consumer feedback.

From the perspective of customers, they are given a wide range of choices. New products are introduced and discounts will be provided to increase sales and demand for a particular product.

From the perspective of manufacturer, we can say that retailers help in assessing the quality and usage of products. They can share customer queries and complaints about the product and manufacturers can make relevant changes accordingly. This can help them in bringing up quality standards and good product. They also can generate market demand through retailers and start new ventures with varied products.

The general services which a retailer provides are:
1. The retailer anticipates the wants of the consumers and then supplies them
the right kind of goods at reasonable price. His job is to make the consumers
buying as easy and convenient as possible. (he acts as a consumers' agent.)
2. He performs the service of bulk-breaking i.e. dividing large quantities into
small units, such as individual cans, bottles, boxes, wrappers, packages,
appropriate for consumer use.
3. He offers a large assembling of merchandise, of suitable size, colour, design,
style and seasonal items-ranging from domestic utensils, household items
to speciality products .
4. He creates time and place utility by storing the products in off season and by
transporting these goods to the places where they can be readily available as
and when needed by the consumer.
5. He also assumes risks by guaranteeing the goods he sells to the consumer.

Since these are the few things which retailers do, giving them proper support by the industry would be the best thing and it can help our economy to run well.