An Introduction to Retailing
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.
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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 too many choices?
How can we grow our business, while
retaining a core of loyal customers?
1-3
The Philosophy
Retailers 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.
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An Ideal Candidate for
Retailing Career
Be a people person
Be flexible
Be decisive
Have analytical skills
Have stamina
1-5
The High Costs and Low Profits
of Retailing
1-6
A Typical Channel of Distribution
Manufacturer
Wholesaler
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Retailer
Final
Consumer
The Retailers Role in the Sorting
Process
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Multi-Channel Retailing
A retailer sells to consumers through
multiple retail formats
Web sites
Physical stores
1-9
Relationship Management Among
Retailers and Suppliers
Disagreements may occur:
control over channel
profit allocation
number of competing retailers
product displays
promotional support
payment terms
operating flexibility
1-10
Distribution Types
Exclusive: suppliers make agreements with
one or few retailers that designate the latter
as the only ones in a specified geographic
area to carry certain brands or products
Intensive: suppliers sell through as many
retailers as possible
Selective: suppliers sell through a moderate
number of retailers
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Comparing Distribution Types
1-12
Special Characteristics Affecting
Retailers
Small
Average
Sale
Impulse
Purchase
Retailers
Strategy
Popularity
of
Stores
1-13
Retail Strategy
An overall plan for guiding a retail firm
Influences the firms business activities
Influences firms response to market
forces
1-14
Six Steps in Strategic
Planning
1.
2.
3.
4.
5.
6.
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Define the type of business
Set long-run and short-run objectives
Determine the customer market
Devise an overall, long-run plan
Implement an integrated strategy
Evaluate and correct
Pay Less + Export More at
Target
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Aspects of Retail Strategy
Growth-oriented
objectives
Appeal to a prime
market
Distinctive company
image
Focus
Strong customer
service
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Multiple points of
contact
Employee relations
Innovation
Commitment to
technology
Community
involvement
Constantly
monitoring
performance
Applying the Retail Concept
Customer Orientation
Coordinated Effort
Value driven
Goal Orientation
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Retailing
Concept
Retail
Strategy
Eliminating
Shopper Boredom
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Customer Service
Activities undertaken by a retailer in
conjunction with the basic goods and
services it sells.
Store hours
Parking
Shopper-friendliness
Credit acceptance
Salespeople
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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?
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Relationship Retailing
Seek to establish and maintain long-term
bonds with customers, rather than act as
if each sales transaction is a completely
new encounter
Concentrate on the total retail experience
Monitor satisfaction
Stay in touch with customers
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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 improved
with information on peoples attributes
and shopping behavior
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Approaches to the Study of
Retailing
Institutional
Functional
Strategic
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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
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