Berman_ch_01
-
Upload
karishma-seth -
Category
Documents
-
view
216 -
download
0
Transcript of Berman_ch_01
-
8/2/2019 Berman_ch_01
1/19
Chapter 1An Introduction to Retailing
RETAIL
MANAGEMENT:
A STRATEGIC
APPROACH,9th Edition
BERMAN EVANS
-
8/2/2019 Berman_ch_01
2/19
1-2
Chapter Objectives
To define retailing, consider it from differentperspectives, demonstrate its impact, and noteits special characteristics
To introduce the concept of strategic planningand apply it
To show why the retailing concept is thefoundation of a successful business, with an
emphasis on the total retail experience,customer service, and relationship retailing
-
8/2/2019 Berman_ch_01
3/19
1-3
Retailing
Between the prod and the consumer thereis a middleman-the retailer, who links the
producers and the ultimate consumers. The word retail is derived from the French
word retaillier, meaning to cut a piece off
or to break bulk.
-
8/2/2019 Berman_ch_01
4/19
1-4
Retailing
Retailing is defined as a conclusive set ofactivities or steps used to sell a product or a
service to consumers for their personal orfamily use.
Retailing encompasses the businessactivities involved in selling goods and
services to consumers for their personal,family, or household use. It includes everysale to the final consumer.
-
8/2/2019 Berman_ch_01
5/19
1-5
Issues in Retailing
How can we best serve our customers whileearning a fair profit?
How can we stand out in a highlycompetitive environment where consumershave too many choices?
How can we grow our business, whileretaining a core of loyal customers?
-
8/2/2019 Berman_ch_01
6/19
1-6
The Philosophy
Retailers can best address these
questions by fully understanding and
applying the basic principles ofretailing, as well as the elements in a
well-structured, systematic, and
focused retail strategy.
-
8/2/2019 Berman_ch_01
7/19
1-7
Figure 1.4 A Typical Channel of
Distribution
Manufacturer
Wholesaler
Final
Consumer
Retailer
-
8/2/2019 Berman_ch_01
8/19
1-8
Figure 1.5 The Retailers Role in
the Sorting Process
-
8/2/2019 Berman_ch_01
9/19
1-9
Multi-Channel Retailing
A retailer sells to consumers throughmultiple retail formats
Web sites
Physical stores
-
8/2/2019 Berman_ch_01
10/19
1-10
Relationship Management
Among Retailers and Suppliers Disagreements may occur:
control over channel
profit allocationnumber of competing retailers
product displays
promotional supportpayment terms
operating flexibility
-
8/2/2019 Berman_ch_01
11/19
1-11
Distribution Types
Exclusive: suppliers make agreements withone or few retailers that designate the latter
as the only ones in a specified geographicarea to carry certain brands or products
Intensive: suppliers sell through as manyretailers as possible
Selective: suppliers sell through a moderatenumber of retailers
-
8/2/2019 Berman_ch_01
12/19
1-12
Figure 1.8 Special Characteristics
Affecting Retailers
RetailersStrategy
SmallAverage
Sale
ImpulsePurchase
Popularityof
Stores
-
8/2/2019 Berman_ch_01
13/19
1-13
Retail Strategy
An overall plan for guiding a retail firm
Influences the firms business activities
Influences firms response to market
forces
-
8/2/2019 Berman_ch_01
14/19
1-14
Six Steps in Strategic
Planning1. Define the type of business
2. Set long-run and short-run objectives
3. Determine the customer market4. Devise an overall, long-run plan
5. Implement an integrated strategy
6. Evaluate and correct
-
8/2/2019 Berman_ch_01
15/19
1-15
Figure 1.10 Applying the
Retail Concept
Customer Orientation
Coordinated Effort
Value driven
Goal Orientation
RetailingConcept
RetailStrategy
-
8/2/2019 Berman_ch_01
16/19
1-16
Figure 1.11 Eliminating
Shopper Boredom
-
8/2/2019 Berman_ch_01
17/19
1-17
Customer Service
Activities undertaken by a retailer inconjunction with the basic goods and
services it sells.Store hours
Parking
Shopper-friendliness
Credit acceptance
Salespeople
-
8/2/2019 Berman_ch_01
18/19
1-18
Relationship Retailing
Seek to establish and maintain long-termbonds with customers, rather than act as
if each sales transaction is a completelynew encounter
Concentrate on the total retail experience
Monitor satisfaction
Stay in touch with customers
-
8/2/2019 Berman_ch_01
19/19
1-19
Effective Relationship
Retailing Use a win-win approach
It is harder to get new customers than to
keep existing ones happy Develop a customer database
Ongoing customer contact is improvedwith information on peoples attributes
and shopping behavior