Elements of Retailing


There are 6 Elements of Retailing. These are:
1. Merchandise (Product)
2. Price 
3. Location
4. Communication Mix
5. Store Design and Display
6. Customer Service

1. Merchandise Assortment (Product)
What are you selling?: The products are of two types, namely Fast Moving Consumer Goods (FMCG) and Consumer Durables. FMCG can be further divided into Perishable and Non-Perishable products.
2. Price
There are several components of the price of a product.
*MRP: ( Which is Maximum Retail Price ) printed on the label
*Final Price: Many retailers offer the products by giving a discount over the final price. The MRP minus the discount  at which the product is sold, is the final price.
*Instalment: It is the option where the final price is divided into Easy Monthly Instalments on which you can buy a product (EMI)

3. Location (Place -where you are selling):
A store should be located at a convenient location having enough parking place for the customers. Also, the product must be available in the right place, at the right time and in the right quantity.

4. Communication Mix: 
Promotion- How will you tell the customer what you are selling
This refers to various tools used for communicating about the sales and other messages to your potential customers about your products.

5. Store Design and Display:
It includes the Internal and External design of the store and the type of layout which has been used to display the merchandise or the goods.

6. Customer Service:
Customer service includes all the activities an organization carries out for its customers. Excellent customer service means putting the customer first. It refers to service like assisting the customer, billing, delivery, complaint handling, inventory management and so on. It is usually a sequence of actions required to complete an event. The staff should be friendly, helpful and knowledgeable about products and services.

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