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Introduction To The World of Retailing: Retailing Management 8E © The Mcgraw-Hill Companies, All Rights Reserved

retailing marketing

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244 views26 pages

Introduction To The World of Retailing: Retailing Management 8E © The Mcgraw-Hill Companies, All Rights Reserved

retailing marketing

Uploaded by

Jo Malaluan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Introduction to Retailing: Introduces the fundamental concepts of retailing and outlines the scope of the retail industry, including an introduction to basic terms and objectives in retail.
  • What is Retailing?: Explains what retailing encompasses, defining core business activities and the roles of retailers.
  • Examples of Retailers: Lists various well-known retailers and discusses firms that act as both retailers and wholesalers.
  • Distribution Channel: Illustrates the distribution channel and the roles of manufacturing, wholesaling, retailing, and consumption.
  • Retailer's Role in a Supply Chain: Describes retailers' positions within supply chains and their connections with manufacturers and consumers.
  • Manufacturing, Wholesaling, and Retailing: Discusses concepts of vertical and backward integration and the interaction between manufacturing, wholesaling, and retailing.
  • Do Retailers Add Value?: Examines how retailers add value to products and the pricing implications for consumers.
  • Social and Economic Significance of Retailing: Explores the substantial impact of retailing on economic growth and employment.
  • Social Responsibility: Analyzes the ethical, social, and environmental responsibilities of retail businesses.
  • Structure of Retailing and Distribution Channels around the World: Compares the retailing and distribution channel structures across different countries, focusing on unique aspects of the U.S. market.
  • Opportunities in Retailing: Identifies various career and entrepreneurial opportunities within the retail industry.
  • Career Opportunities in Retailing: Outlines available career paths and celebrates successful individuals in retail entrepreneurship.
  • Retail Strategy: Explains the components of a successful retail strategy including target market and competitive advantage.
  • Special Characteristics Affecting Retailers: Highlights unique factors influencing retail businesses such as impulse purchases and store popularity.
  • Decision Variables for Retailers: Describes critical decision variables that retailers must consider in strategic planning.
  • Customer Service: Focuses on essential elements of customer service in retail, including store hours and shopper interaction.
  • A Customer Respect Checklist: Presents a checklist for ensuring respect and commitment to customer satisfaction.
  • Relationship Retailing: Defines relationship retailing as a focus on ongoing customer interaction and satisfaction.
  • Effective Relationship Retailing: Provides strategies for developing effective, long-term relationships with customers through databases and personalized contact.
  • Misconceptions About Careers in Retailing: Addresses and debunks common myths about the retail industry and its career prospects.

CHAPTER 1

Introduction to the
World of Retailing
CHAPTER 01
McGraw-Hill/Irwin

Retailing Management 8e

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

The McGraw-Hill Companies, All rights reserved.

1-1

What is Retailing?

CHAPTER 1
2

Retailing a set of
business activities that
adds value to the
products and services sold
to consumers for their
personal or family use
A retailer is a business
that sells products and/or
services to consumers for
personal or family use.
1-2

Examples of Retailers

CHAPTER 1
2

Retailers:
Kohls, Macys,
Wendys,
www.Amazon.com, Jiffy
Lube, AMC Theaters,
American Eagle
Outfitter, Avon, J.Crew

Firms that are retailers and wholesalers sell to other business as well as consumers:
Office Depot, The Home Depot, United
Airlines, Bank of America, Costco
1-3

Distribution Channel

CHAPTER 1
2

1-4

The Retailers Role in a Supply


Chain

CHAPTER 1
2

Retailers are the final business within a


supply chain which links manufacturers to
consumers.
A Supply Chain is a set of firms that make
and deliver a given set of goods and services
to the ultimate consumer.

1-5

Manufacturing, Wholesaling
and Retailing

CHAPTER 1
2

Vertical Integration firm performs more


than one set of activities in the channel
Ex: retailer invests in wholesaling or
manufacturing
Backward Integration retailer performs
some distribution and manufacturing
activities, such as operating warehouses or
designing private label merchandise.
1-6

Manufacturing, Wholesaling
and Retailing

CHAPTER 1
2

Forward Integration manufacturers


undertake retailing activities
Ex: Ralph Lauren (New York Jones, Liz
Claiborne) operates its own stores
Large retailers engage in both wholesaling
and retailing
Ex: Wal-Mart, Lowes, Safeway, Brown Shoe
Company
1-7

Do Retailers Add Value?

Example

CHAPTER 1
2

a box of crackers at a grocery store


costs $1 to manufacturer
sells at a price of $2

Retailers add significantly to the prices


consumers face
Why not buy directly from the manufacturer?
Does that mean that grocery stores are very
profitable?

1-8

How Retailers Add Value

CHAPTER 1
2

Provide Assortment
Buy other products at
the same time (brands,
designs, sizes, etc.)
Break Bulk
Buy it in quantities
customers want
Hold Inventory
Buy it at a convenient
place when you want it
Offer Services
Increasing value of
products and services
Ryan McVay/Getty Images

1-9

Social and Economic


Significance of Retailing

CHAPTER 1
2

Retail Sales:
Over $4.1 trillion in
annual U.S. sales in 2005

Employment:
Employs over 24 million
people in 2005
One of the largest sectors
for job growth in US

Social responsibility
Global player
1-

Social Responsibility

CHAPTER 1
2

Corporate social
responsibility
The voluntary actions taken
by a company to address
the ethical, social, and
environmental impacts of
its business operations, in
addition to the concerns of
its stakeholders

1-

Structure of Retailing and Distribution


Channels around the World: The United
States
The United States

CHAPTER 1
2

CHINA

The nature of retailing and


distribution channels in the U.S.
is unique.
Has the greatest retail density
Has the greatest concentration
of large retail firms
Large enough to operate their
own warehouses, eliminating
the need for wholesaling.
The combination of large stores
and large firms result in a very
efficient distribution system.

1-

Opportunities in Retailing:
Management Opportunities

CHAPTER 1
2

People with a wide range of skills and interests


needed because retailers functions include
Finance
Purchase
Accounting
Management information system (MIS)
Supply management including warehouse
and distribution management
Design and new product development
1-

Opportunities in Retailing:
Entrepreneurial Opportunities

CHAPTER 1
2

Retailing provides opportunities


for people who want to start their
own business
Some of the worlds richest
people are retailing entrepreneurs

Wal-Mart: Sam Walton

Examples of retailing
entrepreneurs
Sam Walton (Wal-Mart)
Jeff Bezos (www.Amazon.com)
Ingvar Kamprad (IKEA)
Anita Roddick (the Body Shop)

IKEA: Ingvar Kamprad

1-

Career Opportunities in
Retailing
Start Your Own Business

CHAPTER 1
2

List of Retail Entrepreneurs on Forbes 400


Richest Americans

Walton Family (Wal-Mart)


Fisher (The Gap)
Wexner (The Limited)
Menard (Menards)
Marcus (The Home Depot)
Kellogg (Kohls)
Schulze (Best Buy)
Levine (Family Dollar)
Gold (99Cent Only)
1-

Retail Strategy

CHAPTER 1
2

A retail strategy
should identify
the target market
the product and
service mix
a long-term
comparative
advantage

1-

Special Characteristics
Affecting Retailers
Small
Average
Sale

CHAPTER 1
2

Impulse
Purchase

Retailers
Strategy

Popularity
of
Stores

1-

Retail Strategy

CHAPTER 1
2

Need to identify the


competition
Intratype competition
Competition among
firms in the same type of
business.
Intertype competition
Competition among
firms in different types of
businesses but which sell
the same product.

1-

Retail Strategy

CHAPTER 1
2

Identifying
customers
What are the
significant
demographic and
life-style trends
Who are your
target customers

1-

Aspects of Targets Strategy

CHAPTER 1
2

Growth-oriented Multiple points of


contact
objectives
Employee relations
Appeal to a prime
Innovation
market
Commitment to
Distinctive
technology
company image
Community
Focus
involvement
Strong customer Constantly
monitoring
service
performance
1-

Decision Variables for Retailers

CHAPTER 1
2

1-

Customer Service

CHAPTER 1
2

Activities undertaken by a retailer in


conjunction with the basic goods and
services it sells.
Store hours
Parking
Shopper-friendliness
Credit acceptance
Salespeople
1-

A Customer
Respect Checklist

CHAPTER 1
2

Do we trust our customers?


Do we stand behind what we sell?
Is keeping commitments to customers
important to our company?
Do we value customer time?
Do we communicate with customers
respectfully?
Do we treat all customers with respect?
Do we thank customers for their business?
Do we respect employees?

1-

Relationship Retailing

CHAPTER 1
2

Seek to establish and maintain longterm bonds with customers, rather than
act as if each sales transaction is a
completely new encounter
Concentrate on the total retail experience
Monitor satisfaction
Stay in touch with customers

1-

Effective Relationship Retailing

CHAPTER 1
2

Use a win-win approach


It is harder to get new customers than to
keep existing ones happy
Develop a customer database
Ongoing customer contact is improved with
information on peoples attributes and
shopping behavior

1-

Misconceptions About
Careers in Retailing

CHAPTER 1
2

College not needed


Low pay
Long hours
Boring
Dead-end job
No benefits
Everyone is part-time
Unstable environment
No opportunity for women and minorities

The McGraw-Hill Companies, Inc./Andrew Resek, photograph

1-

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