Retail Operations UNIT 14 FINANCIAL MANAGEMENT ISSUES IN RETAILING
Exploring Retail Marketing Retailing and Its Benefits 2.
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Transcript of 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
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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
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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.
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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.
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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
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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.
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Retailing Is High Tech
Retailers use:
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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
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Define retailing.
What is the difference between goods and services?
Name some types of retailers.
1.
2.
3.
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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
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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.
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Benefits of Retailing
Convenience
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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
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Career Areas of Retailing
Marketing and AdvertisingStore OperationsLoss PreventionStore ManagementFinanceHuman ResourcesIT and E-commerceSalesDistribution, Logistics, and Supply-Chain ManagementMerchandise Planning and BuyingEntrepreneurship
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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.
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Define retailing.
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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.
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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.
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Explain how retailing has become global.
Critical Thinking
Checking Concepts
8.