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A country´s economy mainly depends upon three economic aspects - production, distribution and consumption. The products or services produced in different parts of country are to be made to reach the ultimate consumer through proper distribution channel. The distribution centers are required to send the products to the wholesale market, which in turn sends products to the retailer. The retailer delivers the goods to the consumers for final consumption. The role of retailing in the marketing mix is very significant. Retailing can be divided into two major sections, viz. organized and unorganized. Organized retailing is one in which there is a proper organized ownership, permanent employees, fixed place involving standardized business practices. The organized sector is slowly growing the Indian market. In today´s competitive market, the purpose of a firm should be read as "creating a loyal customer", which involves both capturing and retaining customer. Importance of creating a loyal customer arises from that it costs more to create a new customer than to retain an existing one.

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Dr. N. GiriBabu M.B.A., M.Com., Ph.D. in the Department of Management Studies, Sri Venkateswara University, Tirupati, A.P.India. He has been working as faculty of Management Studies. He has 12 years teaching experience. He has presented 18 papers at national and international conferences and published in 5 international, 3 national reputed journal

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