Retailing : is business involves selling goods and services to consumers for their personal, family or household use Retailing can be tangible and intangible , as services
Retailing does not always involve a store; it can be web, via mail, phones, manufactures, importers, nonprofit, wholesalers. Retail impact economy; functions in Distribution and relationship with firms selling goods and services to retailers for their resale.
Durable goods store: meaning store like last longer such as: motor vehicle, parts dealer, furniture, home furnishings, electronic, appliances and hardware store.
Nondurable goods and services: general merchandise such as food, beverages, health, personal care stores, gasoline stations, clothing and hobby, book, music.
Retail Functions AND Distribution
Retail last stage in CHANNEL OF DISTRIBUTION :
This means business and people are involve in physical movement and transfer of ownership of goods and services from producer to consumer: Example an exchange: buying IPhone from Apple.
Retailer’s job: communicate with customer and manufacture, deal with products and services. Sorting process: retailers collect sources and buy large amounts and sell in small amounts.
MULTI-CHANNEL Retailing :
Retailers sell to consumers through multiple retail formats: Example, mail, order, web, phone, stores. Helps manufacture reduce cost, improve cash flow.
Exclusive Distribution: Suppliers make an agreement to with few or one retailer to sell certain brand, product or a location. Example Target retail store sells Archer Farms only or up items.
Intensive Distribution: Suppliers sell through many as many as retailers as possible. To maximize profit. Competition between retailers is high.
Selective Distribution: Suppliers sell through only a moderate of retailers. This combines exclusive and intensive, allowing the supplier to earn a high profit.
3 characteristic of affecting retailing
1. Impulse purchase
2. Popularity of stores
3. Small average than manufacturer
Retail Strategy: it is a overall plan guiding a retail firm. Influences the firms business activities and market forces such as completion and economy
Retailing Concept :
1. Customer Orientation : Retailers determine needs of its customer to satisfy 2. Coordinated effort : retailers make plans activities to max efficiency 3. Value driven : retailer offer good value to customer , like discount 4. Goal Orientation: retailer set goals and then uses its strategy to attain them.
Total retail experience: elements in a retail offering that encourages or inhibit consumers. Example; prices display, brand etc. Customer Service: intangible services taken by the retailer in conjunction with the basic goods and services it sells.
Relationship Retailing : Whereby they seek to establish and maintained long term bonds with customer , to make every transaction a possible long term customer Focus on total retail experience , customer service
Value is embodied by a series of activities and process, such as value chain ; values from concumers Value is the perception the shopper has of a value chain.
Price –oriented : shoppers want low prices ,
Service –Oriented shoppers pay more for superior customer service Status –Oriented shoppers will pay a lot to patronize prestigious stores. Value chain : total bundle of benefit offers to consumers through a channel of distribution Example : shopping location parking prices etc.
Value oriented retail Strategy:
1. Expected retail strategy; the minimum value chain elements given a customer. Example women expected store cleanliness. 2. Augmented retail strategy Extra elements in a value chain that differentiate one retailer from another. Example exclusive brands, store cleanliness loyalty programs, special services. 3. Potential retail strategy: value chain elements not yet perfected by a competing firms in the...
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