Exploring Retail Marketing Retailing and Its Benefits 2.

Exploring Retail MarketingExploring Retail Marketing

Retailing and Its BenefitsRetailing and Its Benefits

2

Chapter 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.

3

The Beginnings

From the earliest times, people have spent their days providing for their most basic needs.

The earliest form of retailing was trading.

FoodFood ShelterShelter ClothingClothing

4

What Is Retailing?

RetailingRetailing involves the selling of productsproducts.

Products include goods and services.

products goods and services that have monetary value

goods tangible items that are made, manufactured, or grown

retailing the selling of products to the customer

5

What Is Retailing?

ServicesServices are often intangible.

retail customer purchaser of goods and services from retailers

services intangible things that people do for us that make us feel better or enhance our lives

The retailing process ends with the retail customerretail customer.

6

Retailers Offer Variety

Retailing makes a vast variety of goods and services available to consumers.

Products such as sweaters are available from many retailers in a variety of colors, types, and styles.

7

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though many larger dot-com companies crashed in the 1990s, small stores such as Harris Cyclery of West Newton, Massachusetts, actually increased sales using a basic Web site. Today a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

For more information on retailing, go to marketingseries.glencoe.com.

Peddling Merchandise

8

Retailing Is Global

Technology has made retailing more of a global activity than ever before.

Many large companies have retail outlets in other countries.

Some companies sell their products globally via the Web.

9

Retailing Is High Tech

Retailers use:

10

the Internet to sell goods and services, provide information, and advertise.

video technology to train employees.

computers to track inventory, orders, sales data, customer demographics, and customer buying habits.

Retailers Are Everywhere

Your computer

Your toothbrush

Yourclothing

Yourbreakfast

Yourtransportation

to school

Yourtextbooks and

schoolsupplies

YourCDs

Yourtelevisionprograms

Yourbed

Goods and Services Available Through Retailing

11

Define retailing.

What is the difference between goods and services?

Name some types of retailers.

1.

2.

3.

12

Nature of Retailing

Products move from the manufacturermanufacturer through channels of distributionchannels of distribution.

channel of distribution path merchandise takes from where it is made to the consumer

manufacturer business that makes or produces a good for sale

Channels of distribution can be directdirect and indirectindirect channels of distribution. indirect channel path

that follows more than one step

direct channel path that leads directly from manufacturer to consumer

13

Nature of Retailing

A product moves from the manufacturer to a wholesalerwholesaler, to the retailer, and to the consumer.

producer channel manufacturer also owns its retail stores; product goes from manufacturer to retail store to customer

wholesaler one who buys large quantities of product and then resells it in smaller quantities to retailers

Another type of channel of distribution is the producer producer channelchannel of distribution.

14

Benefits of Retailing

Convenience

15

Variety Payment options Locations

Competitive pricing

Community

Economy

Employment Involvement

Jobs

Retailers

What Retailers Do

Buy Merchandise

Determine Selling Price

Store Goods

Purchased

Advertise and Promote Products

Hire and Manage

Employees

Display Merchandise

ManageRisk

Provide Customer Service

Service Products

Sell Goods or Services

16

Career Areas of Retailing

Marketing and AdvertisingStore OperationsLoss PreventionStore ManagementFinanceHuman ResourcesIT and E-commerceSalesDistribution, Logistics, and Supply-Chain ManagementMerchandise Planning and BuyingEntrepreneurship

17

What is the most important characteristic that all retailers share?

What are the three benefits of retailing?

Describe at least three tasks that retailers perform.

1.

2.

3.

18

Define retailing.

19

Describe the difference between goods and services.

Name the channels of distribution.

Explain three benefits of retailing.

Retailing is the selling of goods or services to the final customer.

1. Goods are items that are made, manufactured, or grown which people want to buy and use. Services are things that make us feel better or enhance our lives in some way.

2. direct channel, indirect channel, and producer channel.

3. Retailing benefits to customers by making shopping easier with convenient locations and times to shop, and by offering competitive prices.

4.

continued

Checking Concepts

1.

2.

3.

4.

List three tasks of retailers.

20

Identify two ways retailers use computers.

Describe the difference between a manufacturer and a wholesaler.

Retailers buy merchandise or products; determine selling price; and advertise and promote products and services.

5. They use computers to keep track of inventory and to gather important data about their customers’ buying habits to make buying decisions for a store.

6. A manufacturer makes or produces a product for sale. A wholesaler buys large quantities of a product and then resells it in small quantities to retailers who sell it to the customer.

7.

continued

Checking Concepts

5.

6.

7.

Answers may vary but should include that retailing has become global due to advances in communications and the Internet.

8.

21

Explain how retailing has become global.

Critical Thinking

Checking Concepts

8.

22

End ofEnd of