Retail can occur in more than just a store (i.e., Doctor's Office, Hair Salon, etc.)
As long as there is a monetary transaction; can be tangible or IN-tangible
What is RETAILING?
RETAILING is 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 por personal or family use.
THE CHANNEL OF DISTRIBUTION
Manufacturing Wholesaler Retailer Consumer *In some cases, steps can be eliminated to save money & increase profit
Manufacturing, Wholesaling, and Retailing
Vertical Integration- firm performs more than one set of activities
Ex. Retailer invests in wholesaling or manufacturing
Backward Integration- retailer performs some distribution and manufacturing activities
Ex. JCPenny sells Arizona Jeans (Private Label)
Forward Integration- manufacturers undertake retailing activities
Ex. Ralph Lauren operates its own stores
Friday, January 18, 2008
*4 Functions of a Retailer*
1.Provides an assortment of products and services
2.Breaking Bulk Breaking down large shipments so products can be distributed accordingly 3.Holding Inventory to keep inventory ready for purchase; works hand-in-hand with "breaking bulk" 4.Providing services (lay-away, catalogs, cleanliness, etc.) *These 4 functions create value for the retailers
Changes in the Retail Industry
Technology- self check-out, TV shopping, online shopping
Product Knowledge of sales associates
MKT 307 Retail MgtWednesday, January 23, 2008
List of retail entrepreneurs among Forbes top 400
Walton Family (Wal-Mart)
Fisher (The Gap)
Marcus, Bank (Home Depot)
Schulze (Best Buy)
Levine (Family Dollar)
You are faced with an Ethical Decision: What Can You Do?
Ignore your personal values and do what your company asks you to do- you will probably feel dissatisfied with your job
Take a stand and tell your employer what you think. Work to change the policies.
Refuse to compromise your principles- you could lose your job!!
General Tremds in Retailing
New types of retailers
Growth in services retailer
Growth in use of Multi-Channel
Retail by traditional retailers
Increase use of technology to reduce costs, increase value delivered
Types of Retailers
Mom & Pop Stores
General Merchandise Retailers
Drug Stores Walgreen's, CVS, Rite Aid
Home Improvement Centers largest and most successful category specialist i.e. Lowe's and Home Depot Department Stores Wide variety/deep assortment and Customer Service, soft and hard goods i.e. Macy's, Sears, JC Penny's Specialty Stores limited number of complementary merchandise, i.e. Victoria's Secret, Claire's, and DTLR Full-Line Discount Stores Rose's,
Category Specialist Narrow, deep assortment of merchandise i.e. Best Buy, Bass Pro Shop. Category killer i.e. Toy's R Us Off-Price Retailers Brand names, designer label merchandise at lower prices i.e. TJ Max, Mershalls, and Burlington
Closeout retailers i.e. Big Lots, outlets, factory stores
Extreme Value full-line stores with very low prices i.e. Dollar Stores, Dollar General
MKT 307Wednesday, January 30, 2008
Types of nonstore Retailers
Customer Print, Mail, Telephone Catalog/ Direct Mail Retailer
CustomerSalespeople Face-to-FaceDirect selling retailer
CustomerTelevision, telephonTV home shopping retailer
Customerinteractive electronic system (internet)Electronic retailer
Why are retailers using multiple channels to interact with customers?? ...