Berman Ch 01 11e
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Transcript of Berman Ch 01 11e
1-1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
An Introduction to Retailing
RETAIL MANAGEMENT:A STRATEGICAPPROACH11th Edition11th Edition
BERMAN EVANS
1-2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter ObjectivesTo define retailing, consider it from different
perspectives, demonstrate its impact, and note its special characteristics
To introduce the concept of strategic planning and apply it
To show why the retailing concept is the foundation of a successful business, with an emphasis on the total retail experience, customer service, and relationship retailing
To indicate the focus and format of the text
1-3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Retailing
Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer.
1-4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Issues in Retailing How can we best serve our customers while
earning a fair profit? How can we stand out in a highly competitive
environment where consumers have so many choices?
How can we grow our business while retaining a core of loyal customers?
1-5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
The PhilosophyRetailers can best address these questions by fully understanding and applying the basic principles of retailing, as well as the elements in a well-structured, systematic, and focused retail strategy.
1-6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-1: Boom Times for Dunkin’ Donuts
1-7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-2: Careers in Retailing
1-8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
An Ideal Candidate for a Retailing Career Must be a people person Must be flexible Should be decisive Must have analytical skills Must have stamina
1-9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Table 1-1: The 10 Largest Retailers in the United States
Rank Company Main Emphasis
1 Wal-Mart Full-line discount stores, supercenters, membership clubs
2 Home Depot Home centers, design centers
3 CVS Caremark Drugstores
4 Kroger Supermarkets, convenience stores, jewelry stores
5 Costco Membership clubs
6 Target Full-line discount stores, supercenters
7 Walgreens Drugstores
8 Sears Holdings Department stores, specialty stores
9 Lowe’s Home centers
10 Safeway Supermarkets
1-10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Manufacturer
WholesalerFinal
Consumer
Retailer
1-11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-5: The Retailer’s Role in the Sorting Process
1-12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Multi-Channel Retailing
A retailer sells to consumers through multiple retail formats: Web sites Physical stores
1-13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-6: Brooks Brothers and Multi-Channel Retailing
1-14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Relationship Management Among Retailers and Suppliers
Disagreements may occur in the following areas:control over channelprofit allocationnumber of competing retailersproduct displayspromotional supportpayment termsoperating flexibility
1-15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Distribution TypesExclusive: suppliers make agreements with
one or few retailers, designating such retailers as the only ones to carry certain brands or products within a specified geographic area
Intensive: suppliers sell through as many retailers as possible
Selective: suppliers sell through a moderate number of retailers
1-16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-7: Comparing Distribution Types
1-17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Impulse Purchase
Popularityof
Stores
Retailer’sStrategy
Small Average
Sale
1-18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Retail Strategy
An overall plan for guiding a retail firm
Influences the firm’s business activities
Influences firm’s response to market forces
1-19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Six Steps in Strategic Planning1. Define the type of business 2. Set long-run and short-run objectives3. Determine the customer market4. Devise an overall, long-run plan5. Implement an integrated strategy6. Evaluate and correct
1-20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-9: “Expect More. Pay Less” at Target
1-21 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Aspects of Target’s Strategy Growth objectives Appeal to a prime
market Distinctive image Focus Customer service Multiple points of
contact
Employee relations
Innovation Commitment to
technology Community
involvement Monitoring
performance
1-22 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Customer Orientation
Coordinated Effort
Value-driven
Goal Orientation
RetailingConcept
RetailStrategy
1-23 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-11: The Build-A-Bear Experience: Never Boring
1-24 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Customer ServiceActivities undertaken by a retailer in
conjunction with the basic goods and services it sells. This includes:Store hoursParkingShopper-friendlinessCredit acceptanceSalespeople
1-25 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 1-12: A Customer Respect Checklist
Do we trust our customers?Do we stand behind what we sell?Is keeping commitments to customers important to our company?Do we value customer time?Do we communicate with customers respectfully?Do we treat all customers with respect?Do we thank customers for their business?Do we respect employees?
1-26 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Relationship RetailingRetailers seek to establish and maintain
long-term bonds with customers, rather than act as if each sales transaction is a completely new encounterConcentrate on the total retail experienceMonitor satisfaction Stay in touch with customers
1-27 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Effective Relationship RetailingUse a “win-win” approach
It is easier to keep existing customers happy than to gain new ones
Develop a customer databaseOngoing customer contact is improved with
information on people’s attributes and shopping behaviors
1-28 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Approaches to the Study of Retailing
Institutional
Functional
Strategic
1-29 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Parts of Retail Management: A Strategic Approach
Building relationships and strategic planning Retailing institutions Consumer behavior and information gathering Elements of retailing strategy Integrating, analyzing, and improving retail
strategy
1-30 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United
States of America.