INTRODUCTION TO THE WORLD OF RETAILING

By Duane Martenson

What we are going to cover

What Retailing is The importance of retailing Career opportunities in retail

What is retailing to you?

Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use

The Four P’s of Marketing

Distribution

Product

Price

Promotion

How do Retailers add value?

■ Provide AssortmentBuy other products at the same time

■ Break BulkBuy it in quantities customers want

■ Hold InventoryBuy it at a convenient place when you want it

■ Offer ServicesSee it before you buy; get credit; layaway

What do Retailers do for Corporate Social Responsibility

McDonalds Houses Starbuck fair trade coffee Target community Give Back

Retail has changed! So has the career opportunities!

Mom and Pop Store

To Today’s Retailer

MIS

Real Estate

Operations

Finance

Promotion/Advertising

Human ResourcesLoss Prevention

Store Design

Misconceptions

■ College not needed■ Low pay■ Long hours■ Boring■ Dead-end job■ No benefits■ Everyone is part-time■ Unstable environment■ No opportunity for women and minorities

The Retail Management Decision Process

The World of Retailing (chapters 1-4) Environmental Factors

Macro– technology, social, ethical, political Micro– competition and customers

Competition – Intratype competition– between same type retialer

(supermarket vs supermarket) Greater Variety of products makes for scrambled

merchandising thus increased Intertype competition. (examples of scrambled merchandising??)

Customers – Consumer Behavior

The Retail Management Decision Process

Retailing Strategy (chapters 5-11) How the firm plans to focus its resources to

accomplish objectives Targets Merchandise Long term competitive advantage

Wallmart vs Toys R UsSmall towns -- big townsWide Varity shallow selection – every toy madeLow price — low priceSelf service – Self service

The Retail Management Decision Process

Retailing Strategy (chapters 5-11) Cont. Strategic Decision Area

Marketing strategy Financial strategy Location strategy Organizational structure Human Resource Information systems Supply Chain Strategies CRM

Implementing the Retail StrategyChapter 12-19

Retail Mix – combination of factors used to satisfy customer needs and influence their purchase decision Types of merchandise and service Pricing Advertising and promotion Store design and merchandise display Level of customer service Store location

1-12

Wal-Mart’s Retail Mix

Retail Strategy

Customer Service

Location

MerchandiseAssortment

PricingCommunication Mix

Store DesignAnd Display

1-13

Wal-Mart’s Retail Mix

Free-standing Stores

Customer Service

MerchandiseAssortment

PricingCommunication

Mix

Store DisplayAnd Design

Location Strategy

1-14

Wal-Mart’s Retail Mix

Location

PricingCommunication

Mix

Store Design and Display

Customer Service

Large Number of Categories

Few Items in Each Category

Assortment Strategy

1-15

Wal-Mart’s Retail Mix

Location

Communication Mix

Store Design and Display

Customer Service

Merchandise Assortment

Low, EDLP

Pricing Strategy

1-16

Wal-Mart’s Retail Mix

Communication Mix

TV and NewspaperInsert Ads

Location

Pricing

Store Design and Display

Customer Service

Merchandise Assortment

1-17

Wal-Mart’s Retail Mix

Store Design and Display

Basic, Special Displays

for Products

Customer Service Location

Merchandise Assortments

PricingCommunication

Mix

1-18

Wal-Mart’s Retail Mix

Customer Service

Limited

Location

Merchandise Assortment

Pricing

Communication Mix

Store Design and Display

Checklist for Making Ethical Decisions

Rubric For Assignments

Points--- 0 10 15 20 25

Assignment posted to Wiki by Due Date

3 days late with no communication on progress

3-5 days late and the group kept you updated on their Progress

1-2 days late with no communication as to the groups progress

1-2 days late and the group kept you updated on their progress

On Time

Points--- 0 20 30 40 50

Assignment met your requirements

Did not meet requirements

Met a few requirements

Met some requirements

Met most requirements

Met all requirements

Points--- 0 20 30 40 50

Quality of Assignment

Did not complete

Low quality, didn’t adequately address topic

Went into great detail but did not apply all of the concepts correctly

Brief but accurately applied the concepts of the topic

Went into great detail and accurately applied the concepts of the topic

Assignment 1

Interview somebody that has a career in the retail field. Ask questions in the following areas

What is an average day like for your position? What career opportunities in retail do they see for

someone with a degree in business? What are the benefits and draw back to working in retail? What does their business do for social responsibility Any ethical situation you have encountered.

Post the interview as a video or podcast to introduction to retail wiki page. (YouTube, Blaberize…)

Assignment 2

Use Screencasting or Digital Storytelling that illustrates the role retailers play in the distribution chain. (Prezi or Photopeach, or Adobe would work well… others?)

Terms to use: Backward/Forward Integration or Vertical Integration Breaking Bulk, Holding Inventory, Providing

Assortment and Services Supply Chain Anything else you see fit…..

Post to Introduction to Retail Wiki page.

Assignment 3

Retail mix Go to two local retailers that are intertype Competitors and

compare their retail mix. Examples (Walmart and Kmart) (Safeway and FTC) (Deer Mt. and Terry Peak)

Customer Service Store Design and display Communication mix Location Merchandise Assortment Price

Use a digital story telling method or multimedia to illustrate the comparisons to document that is appropriate. (Blabberize, Comic Life, Prezi….) Post to wiki!