2. What is Trade?
Trade refers to buying and
selling of goods and
services with the objective
of earning profit.
3. What is Internal Trade?
Internal trade refers to
buying and selling of goods
and services within the
boundaries of a nation.
4. What are the types of Internal
Trade?
There are two types of Internal Trade :-
1) Wholesale trade
2) Retail trade
5. What is Wholesale Trade?
Wholesale trade refers to
buying and selling of goods
and services in large
quantities for the purpose of
resale or intermediate use.
6. Services provided by Wholesalers
1)Services to Manufacturers
2)Services to Retailers
7. Services to Manufacturers
1)They enable the manufacturers to gain
the benefit of large scale production.
2)They bear the risk on behalf of
manufactures like of risk of fall in
prices, theft, fire, etc.
3)They provide financial assistance to
the manufacturers.
8. 4) They provide expert advice to the
manufacturers related to customer’s
tastes and preferences.
5) They enable the manufacturers to
get relieved from marketing activities.
6) They provide storage and
warehousing services to the
manufacturers.
9. Services to Retailers
1)They make the goods readily available
to the retailers.
2)They undertake various marketing
activities on behalf of Retailers.
3)They sell goods to the retailers on
credit basis, thereby, providing them
financial assistance.
10. 4) They pass on the benefit of their
specialized knowledge about the
products to the Retailers.
5) They share the risk of storage,
obsolescence and reduction in prices
with the Retailers.
11. What is Retail Trade?
Retail Trade is that branch of
business which is related to
sale of goods and services to
the ultimate consumers for
their personal use.
12. Services provided by Retailers
1)Services to
Manufacturers and
Wholesalers
2)Services to Consumers
13. Services to Manufacturers and Wholesalers
1)They provide help in the distribution of
products to the consumers scattered over a
large geographical area.
2)They undertake personal selling efforts and
relieve the manufacturers from this activity.
3)They enable the manufacturers and
wholesalers to operate at large scale
14. 4) They collect market
information about the tastes
and preferences of consumers.
5) They participate in the
promotional activities of the
business.
15. Services to Consumers
1)They ensure regular availability of products
to the consumers.
2)They provide information about the arrival
and special features of the products to the
consumers.
3)They provide convenience to the
customers in buying products of their
requirements.
16. 4) They enable the customers to
make their choice out of a
wide selection of goods.
5) They provide after sale
services to the consumers.
6) They provide credit facilities to
the regular buyers.
17. What are Departmental Stores?
A Departmental Store is a large
establishment offering a wide variety
of products, classified into well
defined departments, aimed at
satisfying practically every customer’s
need under one roof.
18. Salient features of a Departmental Store
1)They provide all facilities under one
roof.
2)They are generally located at a
central place.
3)They are generally formed as a
Joint Stock company.
19. 4)They combine both the
functions of retailing and
warehousing.
5)They have centralized
purchasing arrangements.
20. What is a Chain Store?
Chain Stores are networks of
retail shops that are owned and
operated by manufacturers or
intermediaries.
21. Salient features of Chain Stores
1)They are located in fairly populous
localities.
2)The purchase of goods is
centralized.
3)Each retail shop is under direct
supervision of a branch manager.
22. 4)All the branches are controlled by
the Head Office.
5)The prices of goods in such shops
are fixed and sales are cash basis.
6)The shops are supervised by
inspectors appointed by head office.
24. Basis Departmental
Stores
Chain Stores
Location Located at a central
place
Can be located
anywhere
Range of
products
Deal in wide variety
of products
Deal in specified
range of products.
Services offered Aim at providing
maximum services
Provide limited
services
Pricing Pricing policy is
flexible
Pricing policy is fixed
Class of
customers
High income group All class of
customers
Credit facilities Provide Credit No Credit facilities
