By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 2 Trade students can recall all the concepts quickly.
Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 2 Trade
Meaning of Trade-
Trade means the process of exchange of goods and services with an object of earning profit estab1ishin
link between producers and consumers.
Types of Trade :
- Internal Trade
- External Trade
Internal Trade
- Wholesale Trade
- Retail Trade
Retail Trade
- Itinerant Retailers
- Fixed Shop Retailers
Itinerant Retailers:
- Hawkers
- Peddlers
- Street Traders
- Cheap Jacks
- Market Traders
Fixed Shop Retailers
- Small Scale Retailers
- Large Scale Retailers
Small Scale Retailers-
- General stores
- Second hand goods shops
- Authorized dealers
- Speciality shops
Large Scale Retailers
- Departmental Stores
- Supermarket Stores
- Chain Stores
- One price shops
- Malls
Channel Of Distribution-
- Producer / Manufacturer
- Wholesaler
- Retailer
- Consumer
Wholesale Trade-
By Philip Kotler
“Wholeselling includes all activities involved in selling goods or services to those who buy for resale or for business use.”
By Evelyn Thomas
“A true wholesaler is himself neither a manufactures nor a retailer but act as a link between the two.”
Features of Wholesaler-
- Purchases goods from the producer in large quantities.
- Takes risk in the process of distribution.
- Deals with one or few types of goods.
- A large amount of capital is required.
- Maintains price stability by balancing supply and demand factors. Manufacturers get direct information about market.
- Sells the goods to the retailers.
Performs the marketing functions-
- Assembling
- Warehousing
- Transporting
- Advertising
- Grading
Services of Wholesalers
- To Retailers
- To Manufacturers
To Retailers
- finance Assistance
- Collecting order and Distribution of Goods
- Large Purchase
- Transportation
- Risk Bearing
- Provide Market Information
- Marketing Function
- Storage
To Manufacturers
- Financial Support
- Market nformation
- Risk Bearing
- Stock of Goods
- Warehousing and [ ransport
- Regular Supply
- Sales Promotion
Retail Trade-
Meaning of Retail Trade:
According to Oxford Dictionary “Retail is sale of goods to the public in relatively small quantities for use or consumption rather than for resale”
According to William Stanton “Retail Trade includes all activities directly related to the sale of goods and services to the ultimate consumer for personal and non business use”
Features of Retailers-
- Link between the wholesaler and consumers.
- Operates in local markets.
- Deals in wide varieties of goods in small quality.
- Limited investment is required.
- Less risk and low amount of profit.
Services of Retailers:
- Service to Wholesaler
- Service to Consumers
Service to Wholesaler
- Create demand
- Helps to Distribute
- Marketing
- Financing
- Attracts Consumers
- Provides Information
- Connecting Link
- Increase Sales
Service to Consumers
- Variety of Goods
- After Sales Services
- Regular Supply of Goods
- Credit Facilities
- Home Delivery
- Information
- Local Convenience
- Improves Standard of Living
- Sale of Perishable Goods
Types of Retailers-
Itinerant Retailer – Retailers who do not have a fixed place or shop for their business.
- Hawkers: They move from one place to another carrying goods in hand cart.
- Peddlers: They carry goods on their head in baskets or container.
- Street Traders: They do business on footpaths of busy street of cities and towns
- at crowded places like market places, bus stops, railway stations, etc.
- Cheap Jacks: They have independent shops with temporary setup, keep on changing places of their business.
- Market Traders : They open their shops on market days i.e. on different places on fixed days.
Retailers-
Fixed Shop Retailers
Small Scale Fixed Retailers
They Conduct their business operations on a small scale and deal in variety of goods)
- General Stores: They sell goods which are required by people for their day to day needs situated near residential areas of the city or town.
- Second hand Goods shop :They purchase and sell used goods at cheap rates, which are lack of quality, durability and guarantee.
- Authorized Dealer: They have authorized dealership of particular manufacturers of goods. They get good commission from manufacturers.
- Speciality shops: They deal in particular line of goods, offer goods at varying price range with wide range of choice, giving expert advice to the customer.
Retailers-
Fixed Shop Retailers
Large Scale Fixed Retailers
(They conduct their business operations on a large scale by investing huge capital, selling variety of quality goods and located at localities of the city)
Department Stores-
Meaning of Department Stores:
According to James Stephenson
“A big store engaged in the retail trade of variety of articles under the same roof”
According to G.B. Giles
“A departmental store is collection of shops under one roof and ownership, each shop or department specializing in selling a special range of goods’
Features of Department Stores-
- Shopping Convenience
- Centralized Management
- Wide Variety of Goods
- Specialization
- Central Location
- Huge Capital
- No Create Facility
Super Market Shop –
“A large store selling a wide variety of consumer goods, particularly food and small articles
of household requirements.”
Features of Super Market Shop –
- Location
- Types of Goods
- Self Service
- Reasonable Prices
- Capital
- Cash Sales
- Attractive Packing
- Impulsive Buying
Chain Stores-
Definition of Chain Stores:
According to James Stephenson “A chain store shops consists of a number of similar shops owned by a single business firm”.
According to Clark and Clark
“Chain stores system consists of a number of retail store, which sell similar products are centrally owned and operated under one management”.
Features of Chain Stores-
- Low and Uniform Price
- Uniformity
- Limited Range of Goods
- Large Investment
- Distribution through Branches
- Cash Sales
- Quality of Goods
- Impulsive Buying
One Price Shop-
Meaning
- The shops where the prices of all the products or goods are same is known as one price shop.
- Selling a large variety of goods of daily use at low prices.
Features of One price Shop
- Uniform Price
- Low Price
- Variety of Goods
- Location
- Cash Sales
- Less Capital
Mall
Meaning —A mall is large enclosed shopping complex containing various stores, business and restaurants.
Features:
- Enables customer to buy different products from one unit to other units of mall.
- Entertainment venues such as movie theaters and restaurants.
- Variety of things available at one place.
International Trade-
Meaning — When the trade activities are conducted between two or more countries, it is called as ‘International Trade’.
International Trade (External Trade)-
- Export Trade
- Import Trade
- Entrepot Trade
Export Trade-
Meaning — Export trade refers to sale of goods and services to foreign country.
Export Procedure-
- Priliminary Stage
- Preshipment Stage
- Shipment Stage
- Post Shipment Stage
Priliminary Stage:
- Registration
- Appointment of Agent
Preshipment Stage:
- Receipt of order
- Letter of credit
- Pre-shipment finance
- Production
- Packaging
- ECGC cover (Export Credit and Guarantee Corporation
- GST Formalities (Goods and Services tax)
- Marine Insurance
- C & F agents (Clearing and Forwarding)
Shipment Stage:
- Processing
- Examination of goods
- Loading of goods
Post Shipment Stage:
- Shipment advice
- Presentation of document
- Realization of incentives
- Follow up
Import Trade-
Meaning — Import trade refers to the purchase of goods and services from foreign country.
Import Procedure –
- Priliminary Stage
- Pre Import Stage
- Import Stage
- Post Import Stage
Priliminary Stage:
- Registration
- Negotiation
Pre Import Stage:
- Quota – Certificate
- Foreign Exchange
- Order placement
- Letter of Credit
- C & F Agent
- Shipment Advice
Import Stage:
- Receipt of Document
- Bill of entry
- Delivery of order
- Custom Clearance
Post Import Stage:
- Post trust due
- Custom duty
- Insurance premium
- Freight payment
- Exporter payment
- Follow-up
Entrepot Trade-
Meaning — The term entrepot is referred to as a seaport or warehouse where goods would be imported for storage or process before re- export.
Word Meaning:
vital – important; strategies – planning; entity – individual body; relatively – in comparison; promotion – to support; barter – exchange of goods and services without using money; preferences – likings; simplified
– easy; salesmanship – skill or ways to use sell something; establishes – builds; arrivals – new things; itinerant – travelling from one place to another; window display – in a shop product are display to attract the customer; sufficient – adequate / enough; channel – medium / method; after sales service – providing service after purchasing something; intermediaries – middleman; durable – long lasting; stability – fixed; commission – monetary benefits for service provided; assembling – to collect; urbanization – making an area to a city; grading – to arrange as per size and shape; recruitment – appointment; valuable – very useful; access – approach; fluctuations – rise and fall of something; variants – different; induced – influence / attracted; impulsive – unplanned / quick; appearance – the way that something looks like; discrepancies
– differences; irrespective – without consideration; overhead – above; bargaining – to discuss; door to door – way of marketing from one door to another door; reasonable – fair; globe – world; complex – a whole structure of building interconnected; tariff – tax / duty; prompt – quick; convenience – without any effort; lengthy – very long; exporter – a person / company that send goods or services to another country; importer – a person / company that buys goods or services from another country; transit – transport; incentive – benefit; indigenous – local; freight – goods transported by train / ship / truck; quota – quantity; overseas – foreign country; port – a place where ships are loaded and unloaded.