Meaning and functions of Manufacturer and Retailer - SS1 Commerce Lesson Note

Manufacturer

A manufacturer is a company or entity that produces goods or products using raw materials, components, or other inputs. They are responsible for the entire production process, from designing and creating the product to packaging and distribution. Manufacturers typically operate in factories or production facilities.

Functions of a manufacturer:

·         Production: The primary function of a manufacturer is to produce goods or products. They use their expertise, machinery, and resources to transform raw materials into finished goods.

·         Quality control: Manufacturers ensure that their products meet specific quality standards. They implement quality control measures at various stages of the production process to ensure consistency and reliability.

·         Research and development (R&D): Manufacturers often engage in research and development activities to innovate, improve product design, and develop new technologies or features.

·         Packaging and labeling: Manufacturers are responsible for packaging their products in an appealing and protective manner. They also provide appropriate labeling with relevant information, such as product details, instructions, and safety warnings.

·         Distribution and supply chain management: Once the products are ready, manufacturers coordinate their distribution to retailers or other distribution channels. They manage the logistics, transportation, and inventory to ensure the products reach the intended markets efficiently.

Retailer:

A retailer is a business that sells products directly to consumers in small quantities. They act as an intermediary between the manufacturer or wholesaler and the end consumer, providing a platform for customers to purchase goods.

Functions of a retailer:

·         Purchasing and inventory management: Retailers source products from manufacturers or wholesalers and maintain an inventory to meet customer demand. They decide which products to stock based on market trends, customer preferences, and their target audience.

·         Display and merchandising: Retailers create attractive displays and arrange products in-store or online to attract customers and encourage purchases. They use visual merchandising techniques to enhance the presentation and appeal of the products.

·         Sales and customer service: Retailers interact with customers, assist them in finding products, provide information, and answer queries. They aim to create a positive shopping experience and build customer loyalty.

·         Pricing and promotions: Retailers determine the pricing strategy for their products, considering factors like costs, competition, and market demand. They also run promotional campaigns, discounts, or sales to attract customers and increase sales.

·         Payment processing: Retailers handle the transaction process, accepting various payment methods, such as cash, credit cards, or digital wallets. They ensure a secure and convenient payment experience for customers.