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Retailing Chapter 1

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					Exploring Retail Marketing

Retailing and Its Benefits




                             2
               Chapter Objectives

Define the term retailing.
Explain the difference between goods and
services.
Identify different channels of distribution.
Explain the benefits of retailing.
Identify some of the tasks of retailers.



                                               3
                  The Beginnings

From the earliest times, people have spent their
days providing for their most basic needs.


        Food         Shelter      Clothing



The earliest form of retailing was trading.


                                                   4
                 What Is Retailing?

Retailing involves the      retailing the selling of
selling of products.        products to the customer

                            products goods and
                            services that have
Products include goods      monetary value

and services.               goods tangible items
                            that are made,
                            manufactured, or grown




                                                       5
                 What Is Retailing?

Services are often           services intangible
                             things that people do for
intangible.                  us that make us feel
                             better or enhance our
                             lives

The retailing process ends   retail customer
                             purchaser of goods and
with the retail customer.    services from retailers




                                                         6
                  Retailers Offer Variety

Retailing makes a vast variety of goods and
services available to consumers.

Products such as sweaters are available from
many retailers in a variety of colors, types, and
styles.




                                                    7
                      Peddling Merchandise
                        Operating an e-tail business on an
   Operating an e-tail business on an electronic channel—the
                        electronic channel—the Web—can
   Web—can be costly, due to design, delivery, returns, and
   operating expenses.be costly, due to design, delivery,
                        returns, and operating expenses.
   Though Many larger dot-com companies crashed in the
Though many larger dot-com companies crashed in the
   1990’s, small stores like Harris Cyclery of West Newton,
1990s, small stores such as Harris Cyclery of West Newton,
   Massachusetts, actually increase sales using a basic Web
   site. Today, a actually increased sales using a basic Web
Massachusetts, third of Harris’s bicycle business rides in on
   the Web a third of Harris’s bicycle personal rides in
site. Todayto get hard-to-find parts and business service. on
the Web to get hard-to-find parts and personal service.
   Describe an e-business’s home page to your class after
   viewing one through marketingseries.glencoe.com.
For more information on retailing,
go to marketingseries.glencoe.com.
                                                                8
                 Retailing Is Global

Technology has made retailing more of a global
activity than ever before.

Many large companies have retail outlets in other
countries.

Some companies sell their products globally via
the Web.

                                                    9
                 Retailing Is High Tech

Retailers use:
     the Internet to sell goods and services,
     provide information, and advertise.
     video technology to train employees.
     computers to track inventory, orders, sales
     data, customer demographics, and customer
     buying habits.


                                                   10
                                Retailers Are Everywhere



                                            Your
  Your                Your                                      Your                Your
                                      transportation
computer            clothing                                    CDs                 bed
                                         to school



    Goods and Services Available Through Retailing

                                                     Your
                                                                          Your
          Your                   Your           textbooks and
                                                                       television
       toothbrush              breakfast            school
                                                                       programs
                                                   supplies



                                                                                           11
1.   Define retailing.

2.   What is the difference between goods and
     services?

3.   Name some types of retailers.


                                                12
                Nature of Retailing
                             manufacturer business
                             that makes or produces
Products move from the       a good for sale
manufacturer through
                             channel of distribution
channels of distribution.    path merchandise takes
                             from where it is made to
                             the consumer

Channels of distribution     direct channel path that
                             leads directly from
can be direct and indirect   manufacturer to consumer
channels of distribution.    indirect channel path
                             that follows more than
                             one step
                                                        13
                 Nature of Retailing

A product moves from the       wholesaler one who
manufacturer to a              buys large quantities of
                               product and then resells
wholesaler, to the retailer,   it in smaller quantities to
and to the consumer.           retailers



Another type of channel of     producer channel
                               manufacturer also owns
distribution is the producer   its retail stores; product
channel of distribution.       goes from manufacturer
                               to retail store to customer

                                                             14
              Benefits of Retailing
                             Variety
Convenience                  Payment options
                             Locations
Competitive pricing

                             Employment
Community
                             Involvement

Economy                      Jobs



                                                15
What Retailers Do
                                        Store     Advertise and
     Buy        Determine
                                        Goods       Promote
 Merchandise   Selling Price
                                      Purchased     Products




   Hire and
                                                    Display
   Manage                 Retailers               Merchandise
  Employees




                 Provide
   Manage                              Service    Sell Goods or
                Customer
    Risk                              Products      Services
                 Service

                                                                  16
                Career Areas of Retailing

Marketing and Advertising
Store Operations
Loss Prevention
Store Management
Finance
Human Resources
IT and E-commerce
Sales
Distribution, Logistics, and Supply-Chain Management
Merchandise Planning and Buying
Entrepreneurship
                                                       17
1. What is the most important characteristic that
   all retailers share?

2. What are the three benefits of retailing?

3. Describe at least three tasks that retailers
   perform.

                                                    18
                  Checking Concepts

1. Define retailing.               1. Retailing is items
                                   4.            benefits
                                   2. Goods are the
                                   3. direct channel,
                                      selling of goods
                                      to customers by
                                      indirect made,
                                      that are channel,
2. Describe the difference            or services to the
                                      and producer
                                      manufactured, or
                                      making shopping
   between goods and                  grown with
                                      easier which
                                      channel.
                                      final customer.
                                      convenient
                                      people want to buy
   services.                          locations and times
                                      and use. Services
3. Name the channels of               to shop, and by
                                      are things that
                                      make uscompetitive
                                      offering feel better
   distribution.                      or enhance our
                                      prices.
                                      lives in some way.
4. Explain three benefits
   of retailing.
                       continued                         19
                  Checking Concepts

5. List three tasks of               7. A manufacturer
                                     5. Retailers buy
                                     6. They use
   retailers.                           computers to keep
                                        makes or produces
                                        merchandise or
                                        a product
                                        products; for sale.
                                        track of inventory
                                        A wholesaler
                                        and to gather buys
                                        determine selling
6. Identify two ways                    price; quantities of a
                                        large and advertise
                                        important data
   retailers use computers.             about their
                                        and promotethen
                                        product and
                                        customers’ buying
                                        resells it and
                                        products in small
                                        habits to to
                                        quantities
                                        services. make
7. Describe the difference              buying decisions it
                                        retailers who sell
   between a manufacturer               forthe customer.
                                        to a store.
   and a wholesaler.
                         continued                           20
                 Checking Concepts

Critical Thinking
8. Explain how retailing   8. Answers may vary
   has become global.         but should include
                              that retailing has
                              become global due
                              to advances in
                              communications
                              and the Internet.




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