case 6

McGraw-Hill/Irwin
Retailing Management,

McGraw-Hill/Irwin
Retailing Management,

Computer Source: 44 outlets

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Chapter 1

Introduction to the World of Retailing

McGraw-Hill/Irwin
Retailing Management,

1-6

The World of Retailing

Introduction to Retailing
Types of Retailers
Multi-Channel Retailing
Customer Buying Behavior

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Questions

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What is retailing?
What do retailers do?
Why is retailing important in our society?
What career and entrepreneurial opportunities does retailing offer?
■ What types of decisions do retail managers make? 1-8

What is Retailing?
Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use
Retailing is a business that sells products and/or services to consumers for personal or family use.
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Examples of Retailers

 Retailers:
Otobi
Aarong
Agora
Bata
Singer

 Firms that are retailers and wholesalers - sell to other business as well as consumers:
Bata, Singer, Hatil
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Manufacturer’s Perspective
The Four P’s of Marketing
Retailers are part of the
Retailers are part of the distribution channel distribution channel
Product

Price

Distribution

Promotion

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Distribution Channel

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Typical Supply Chain Network

Customers

Suppliers

Plants
Distribution
Centers

retailers

A Retailer’s Role in a Supply Chain
 Retailers are the final business orgs within a supply chain which links manufacturers to consumers. 1-14

Manufacturing, Wholesaling and Retailing
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
Ex: JCPenney sells Arizona jeans (Private Label)
Forward Integration – manufacturers undertake retailing activities
Ex: Ralph