Microsoft Word marketing doc

High Promotional Expenditure 
It has to spend heavily on giving an advertisements in news papers and 
magazines in undertaking sales promotional programmes in preparing 
the mailing lists and catalogues. 
h) 
High Packaging Expenses
Since the goods are to be sent to distant places by post, a special 
packaging must be done to avoid the damage that might occur to them.
Hence, packaging expenses would be high in this business. 
i) 
Scope for Fraud
This kind of retailing offers sufficient opportunity for cheating the 
customers. 
Consumers’ Co-operative Stores 
Consumers’ Co-operative Stores is an association organised by 
consumers to obtain their requirements by purchasing in bulk and selling 
through the stores owned, managed and controlled by themselves. The basic 
aim of this stores is to eliminate the middlemen and their profits. 
Origin 
Consumers’ Co-operative stores originated in England where 28 weavers 
of Rochdale established the Rochdale Equitable Pioneers Society in 1844 with 
the purpose of sale of provisions, clothes etc. to its members. In India, 
consumers, co-operative stores have achieved a limited success. 
Organisational and Management 
Consumers’ Co-operative stores in India are organised under the 
provisions of the Co-operative Societies Act of 1926. For registering a co-
operative stores atleast ten members are required. Every consumers’ co-
operative society is controlled by the General Body of shareholders. The 
business of the stores is managed by a committee elected in the annual general 
meeting of the members. The capital of the stores is subscribed by the members 
by purchasing the shares. The principles of Co-operatives have been applied for 
the distribution of profits, goods to ultimate consumers, etc. 

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