Post on 14-Dec-2015
McGraw-Hill/IrwinRetailing Management, 6/e
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1
Introduction to the World of Retailing
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The World of Retailing
Introduction to Retailing Types of Retailers
Multi-Channel RetailingCustomer Buying
Behavior
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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.
A retailer is a business that sells products and/or services to consumers for personal or family use.
James Darell/Getty Images
Centro de Comercio Detallsita
• www.gda.itesm.mx/ccd• ADMINISTRACIÓN DE MERCANCÍAS / PRECIOS: Aprenderás el manejo de compras,
resurtidos e inventarios que realizan las empresas de comercio al detalle. Analizarás la tecnología que está revolucionando el retail y estudiarás la administración y el establecimiento de precios, así como el desarrollo y presentación de líneas de producto, dando especial atención a las relaciones comprador-proveedor.
• INTERNSHIP I Y II: Aplicarás tus conocimientos dentro de una empresa detallista. en el verano trabajarás 7hrs. diarias por 5 semanas en una empresa de comercio al detalle, en donde conocerás las diferentes áreas de la empresa y tendrás la oportunidad de resolver algún problema o realizar un proyecto específico.
• ADMINISTRACIÓN DE LA TIENDA Y SERVICIO AL CLIENTE: Analizarás los procesos en el manejo y administración de una tienda. Aprenderás temas relacionados con sistemas de información, recursos humanos, imagen y diseño de la tienda (visual merchandising), servicio al cliente y CRM (Customer Relationship Management), entre otros.
• ESTRATEGIA DE COMERCIO DETALLISTA MULTICANAL: Conocerás las estrategias que siguen los principales detallistas y su implicación en las ventas. Comprenderás la metodología para la ubicación de puntos de venta. Aplicarás las estrategias de publicidad y promoción que se utilizan en el comercio detallista. Además, aprenderás la nueva tendencia en el retail de administración por categorías.
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Examples of Retailers
Retailers: Kohl’s, Macy’s, Wendy’s,
Amazon.com, Jiffy Lube, AMC Theaters, American Eagle Outfitter, Kroger
Firms that are retailers and wholesalers that sell to other business as well as consumers:
Office Depot, The Home Depot, United Airlines, Bank of America, Costco
The McGraw-Hill Companies, Inc./Andrew Resek, photographer
The McGraw-Hill Companies, Inc./John Flournoy, photographer
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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: JCPenney sells Arizona jeans (Private Label)
Forward Integration – manufacturers undertake retailing activities
Ex: Ralph Lauren operates its own stores
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How Retailers Add Value• Break Bulk
-Buy it in quantities customers want• Hold Inventory
-Buy it at a convenient place when you
want it• Provide Assortment
-Buy other products at the same time• Offer Services
-See it before you buy, get credit, layaway
Ryan McVay/Getty Images
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How Retailers Add Value
The value of the product and service increases as the retailer performs functions.
Bicycle is developed at manufacturer
Bicycle is developed in several styles
Bicycle is offered in convenient locations in quantities of one
Bicycle is featured on floor display
Bicycle can be bought on credit or
put on layaway
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Social and Economic Significance of Retailing
• Community Support
• Over $3.4 trillion in annual U.S. sales
greater than medical care, housing, recreation combined
• Employs 27 million people
21% of non-agricultural US workforce
• Management training opportunities
• Entrepreneurial opportunities
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Retailing is Big Part of Economy
Services (45.8%)
Manufacturing (11.2%)Retail (21.8%)
Government (16.6%)
Other 5.6%
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Retailers are a Business Like Manufacturers
Accounting
Marketing
Finance
Human ResourcesOperations
MIS
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Retailing is a High Tech Industry
• Selling Merchandise over the Internet
• Using Internet to manage supply chains
• Analyze POS data to tailor assortments to stores
• Computer systems for merchandise planning
Ryan McVay/Getty Images
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Globalization of Retailing
Source Merchandise From Around the World
Wal-Mart Operates in U.S., China, Mexico, UK, Germany
Carrefour has Stores in 25 Countries
Don Farrall/Getty Images
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JCPenney’s Strategic Evolution
• Main Street private label soft goods retailer• Changes in environment -- increased
disposable income, growth of suburbs, interstate highway program
• Emulate Sears in enclosed suburban malls• Focus on soft goods -- drop automotive,
sporting goods, hardware• Develop catalog, develop electronic retailing• Stand alone stores• Centralized checkout
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Sears Holdings’ Strategic Evolution
• Large number of merchandise categories -- appliances, hardware, apparel
• Malls evolved into places for buying soft goods, hard goods sold at category killers
• The Softer Side of Sears• Refocused on value -- Testing carts in stores• Acquired Lands’ End• Reviewed training program for new managers• New growth with Kmart
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Organic and natural foods supermarket chain
Assortment beyond organic/natural foods– Private labels - Whole Food™, 360 Day Value™– Love, trust, and employee empowerment– Always innovation:
Candy Island
Lamar Street Greens
Fifth Street Seafood
In-store Massage Therapist
Whole Foods Implementation
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Claire’s Retail Mix
Retail Strategy
Customer Service Location
Merchandise
Assortment
PricingCommunication Mix
Store Design
and Display
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Claire’s Retail Mix
Enclosed malls
Customer Service
Merchandise
Assortment
PricingCommunication Mix
Store Display
And Design
Location Strategy
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Claire’s Retail Mix
Location
Pricing
Communication Mix
Store Design
and Display
Customer Service
Jewelry, accessories and cosmetics for tweens and teens
Assortment Strategy
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Claire’s Retail Mix
Location
Communication Mix
Store Design
and Display
Customer Service
Merchandise Assortment
Modest with Sales
Pricing Strategy
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Claire’s Retail Mix
Communication Mix
TV and Magazine Ads
Store Design
And Display
Customer ServiceLocation
Merchandise Assortment
Pricing
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Claire’s Retail Mix
Store Design and Display
Bright, fashionable and fun
boutique layout
Customer Service Location
Merchandise Assortments
PricingCommunication Mix
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Claire’s Retail Mix
Customer Service
Modest
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display
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Macy’s Retail Mix
Retail Strategy
Customer Service Location
Merchandise
Assortment
PricingCommunication Mix
Store Design
and Display
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Macy’s Retail Mix
Enclosed Malls
Customer Service
Merchandise
Assortment
PricingCommunication Mix
Store Display
And Design
Location Strategy
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Macy’s Retail Mix
Location
Pricing
Communication Mix
Store Design
and Display
Customer Service
Many Items in Apparel
and Soft Home
Assortment Strategy
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Macy’s Retail Mix
Location
Communication Mix
Store Design
and Display
Customer Service
Merchandise Assortment
Moderate with
Frequent Sales
Pricing Strategy
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Macy’s Retail Mix
Communication Mix
TV, Newspaper Ads and
Special Events
Store Design
And Display Merchandise Assortment
Pricing
Customer ServiceLocation
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Macy’s Retail Mix
Store Design and Display
Racetrack with Displays
Customer Service Location
Merchandise Assortments
PricingCommunication Mix
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Macy’s Retail Mix
Customer Service
Modest
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display
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Target’s Retail Mix
Retail Strategy
Customer Service Location
Merchandise
Assortment
PricingCommunication Mix
Store Design
and Display
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Target’s Retail Mix
Free-standing Stores
Customer Service
Merchandise
Assortment
PricingCommunication Mix
Store Display
And Design
Location Strategy
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Target’s Retail Mix
Location
Pricing
Communication Mix
Store Design
and Display
Customer Service
Large Number of Categories
Private Labels
Few Items in Each Category
Assortment Strategy
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Target’s Retail Mix
Location
Communication Mix
Store Design
and Display
Customer Service
Merchandise Assortment
Low to Modest
Pricing Strategy
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Target’s Retail Mix
Communication Mix
TV and Newspaper
Insert Ads
Store Design
And Display
Customer ServiceLocation
Merchandise Assortment
Pricing
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Target’s Retail Mix
Store Design and Display
Colorful, wide aisles displays
for products with a grid layout
Customer Service Location
Merchandise Assortments
PricingCommunication Mix
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Target’s Retail Mix
Customer Service
Limited
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display
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Ethical Situations for a Retail Manager
• Should a retailer sell merchandise that is suspects was made using child labor?
• Should it advertise that its prices are lowest in area even though some items are not?
• Should a buyer accept an expensive gift from a vendor?• Should salespeople use high-pressure sales when they know
the product is not the best for the customer’s needs?• Should a retailer give preference to minorities when making a
promotion decision?• Should a retailer treat some customers better than others?
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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!
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Career Opportunities in RetailingStart Your Own Business
• Walton Family (Wal-Mart)• Fisher (The Gap)• Wexner (limited)• Menard (Menard’s)• Marcus, Blank (The Home Depot)• Kellogg (Kohl’s)• Schulze (Best Buy)• Levine (Family Dollar)• Gold (99Cent Only)
List of Retail Entrepreneurs on Forbes 400 Richest Americans
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Misconceptions About Careers in Retailing
• Don’t need college• Low pay• Long hours• Boring• Dead-end job• No benefits• Everyone is part-time• Unstable environment• No opportunity for women and minorities
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Why You Should Consider Retailing
• Entry level management positions
-Department manager or assistant buyer/planner
-Manage and have P&L responsibility on your first job
• Starting pay average with great benefits
- Some retailers pay graduate school
• No two days are alike
• Buying and planning for financially analytically oriented
• Management for people-people