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.
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).
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?
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.)
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