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Question

Discuss services of retailer to manufacturer and wholesaler.

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Solution

Retailers provide the following benefits to wholesalers and manufacturers.

1. Help in the distribution of goods: Provide help in the distribution of their products by making these available to the final consumers, who may be scattered over a large geographic area. They thus provide place utility.

2. Personal selling: By undertaking personal selling efforts, the retailers relieve the producers of this activity and greatly help them in the process of actualising the sale of the products.

3. Enabling large-scale operations: Enables them to operate on, at a relatively large scale, and thereby fully concentrate on their other activities.

4. Collecting market information: Retailers serve as an important source of collecting market information about the tastes, preferences, and attitudes of customers which is useful in taking important marketing decisions.

4. Helps in the promotion: Manufacturers and distributors have to carry on various promotional activities in order to increase the sale of their products. Retailers participate in these activities and promote the sales of products.


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