What is retailing?Chapter 1

Question

• Have you ever considered owning your own shop?• What kind of shop?• Do you think it would be fun?• Do you think it would be hard work?• What duties do you think would be

involved?

( hand in at end of class )

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.

Section 1.1 Exploring Retail Marketing

Retailing Is Everywhere

Do we agree?

What are some examples of retailing?

Classroom Guide for Participation and Note TakingRed = Title for sectionGreen = Class participationBlue = Take Notes

What is Retailing?• Retailing - the selling of products to the customer. • Products – include goods and services.• Goods – tangible items that are made, manufactured, or grown that

people want to buy and sue.• Services – are things that people do for us that make us feel better

or enhance our lives in some way. • Retail customer – is the purchaser of the goods and services from

retailers.

Examples of goods?

Examples of services?

Examples of both goods and services?

Key Terms

Retailing is Global• People all over the world engage in some type of retailing.

• How so? • Examples? • Experiences?

• Top 100 Retailers in 2013

Internet Retailers• Internet retailers sell their goods and services through the

Internet. • Customers browse the Web sites and makes purchases right

there.

Do you think internet retailers or e-tail stores have disadvantages?

Catalog Retailers • Catalog Retailers sell their products through the mail or other

delivery services. • They appeal to customers who choose to spend their free time

in ways other than shopping in stores. • Enables customers to shop from any location on earth at any

time of the day or night.

Retailing is High Tech• Use technology to increase customer base and ease

purchasing. • Retailers make use of video technology to train their

employees• Retailers use computers to track inventory and orders.• Retailers use scanners and cash registers to complete sales

transactions.• Retailers use computers to gather information about

customers and their demographics.

Quick Check

• Define retailing.

• What is the difference between goods and services?

• Name some types of retailers.

• How have retailers been able to expand global business?

(Hand in at end of class).

Retailing and Its BenefitsSection 2

Nature of Retailing

• The most important characteristic that all retailers share• is the desire to make their products available

to their customers when the customer wants them and where they want them.

Channels of DistributionManufacturers/

Producers

Consumers Retailers

Consumers

Wholesaler

Retailers

Consumers

Agents

Retailers

Consumers

Wholesalers

Retailers

Consumers

Direct Channel

Indirect Channel

Channels of Distribution• Avon Company – Direct - Manufacturer• Florist – Indirect – Wholesalers or Retailers• Costco – Direct - Manufacturer

Benefits to Customers• Stores• Browsing• Touching and feeling products• Personal service• Cash payment• Immediate Gratification• Entertainment and social interaction

• Catalog• Convenience• Portability• Safety• Visual presentation

Benefits to Customers• Internet• Convenience• Safety• Broad selection• Detailed information• Personalization• Problem solving information

Benefits to the Community• Provide a source of employment for teenagers and adults.• Support community activities. Examples sponsor for a team

Benefits to the Economy

• Employees who work also spend money in their community• Needs and wants• Holiday season

What Retailers Do

1 Buying Merchandise - Determine what merchandise will be purchased, when, and in what quantities.

2 Determining Selling Price – Determine a selling price fair to the customer but allow retailer to make profit.

3 Storing Goods Purchased – Goods in large quantities are stored while some are displayed for sale.

4 Advertising and Promoting Products – Promote product or service so customers are made aware of what is being offered.

5 Displaying Merchandise – Display of goods in a neat and attractive manner.

What Retailers Do

6. Selling Goods or Services – Selling requires knowledge of product and friendly staff.

7. Servicing Products – Keeping products in working condition and customer happy.

8. Providing Customer Services – Servicing customer includes accepting credit cards, delivery, etc.

9. Risk Management – Risk of product arriving at store, risk of fire, and theft.

10. Hiring and Managing Employees – Hire reliable, friendly and honest employees.

Career Areas of Retailing• Marketing and Advertising – involve persuading or convincing

people to buy; publicity, visual merchandising, promoting• Store Operations – physical site operations, heating and air

conditioning, paint, floors• Loss Prevention – prevention of shoplifting• Store Management – deals with day to day operation;

managing employees, cash in register• Finance – tracking and paying invoices, calculating discounts,

profits

Career Areas of Retailing• Human Resource – interviewing, hiring, training employees• It and E-Commerce – internet marketing, web design • Sales – selling to the customers• Distribution, Logistics, and Supply Chain Management –

warehouse functions and getting merchandise to retail store• Merchandise Planning and Buying – planning on what to buy

and quantities• Entrepreneurship – owning and operating your own business

Math Check

• You just bought a new bicycle for $250 plus 8 % sales tax. Assembly costs $35. What is your total bill?

Answer• 250 x 1.08 = $270

• $ 270 + $35 = $305

Math Check

•Abdul bought five T-shirts ($9 each) and two pairs of jeans ($22 each) from the Old Navy. What is the total cost of the T-shirts and jeans? (Do not include tax.)

Answer• $9 x 5 = $45

• $22 x 2 = $44

• $45 + $22 = $89 total

Quick Check

1. What is the most important characteristic that all retailers share?

2. What are three benefits of retailing?

3. Describe at least three tasks that retailers perform.

(Hand in at end of class)