PPT 1-1 Consumer Behavior Ignacio J. Vázquez E. © 2007 5 th Edition.

PPT 1-1 Consumer Behavior Ignacio J. Vázquez E. © 2007

5th Edition5th Edition

PPT 1-2 Consumer Behavior Ignacio J. Vázquez E. © 2007McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Introduction to the Introduction to the World of RetailingWorld of Retailing

Chapter 1Chapter 1


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

• A retailer is a business that sells products and/or services to consumers for personal or family use.

What is Retailing?


Examples of Retailers

• Retailers:

-Sears, Holiday Inn, McDonalds, Amazon.com, Jiffy Lube, AMC Theaters, American Eagle Outfitter, FAO Schwartz, Kroger

• Firms that are retailers and wholesalers that sell to other business as well as consumers:

-Office Depot, The Home Depot, United Airlines, Bank of America, Sams Clubs


How Retailers Add Value

• Breaking Bulk

-Buy it in quantities customers want

• Holding Inventory

-Buy it at a convenient place when you want it

• Providing Assortment

-Buy other products at the same time

• Offering Services

-See it before you buy, get credit, layaway


Doll can be bought on credit or put on

layaway

Doll is featured on floor display

Doll is offered in convenient locations in quantities of oneDoll is developed in

several styles

How Retailers Add Value

Doll is developed at manufacturer

The value of the product and service increases as the retailer performs functions.


Manufacturer’s Perspective

The Four P’s of Marketing

Distribution

Retailers are part of the

distribution channel

Retailers are part of the

distribution channelProduct

Price

Promotion


Distribution Channel

Distribution ChannelPPT 1-4 Distribution Channel

PPT 1-4


Accounting Finance

MISOperations

Marketing

Human Resources

Retailers are a Business Like Manufacturers


Decision Variables for Retailers

Customer Service

Store Design and Display

MerchandiseAssortment

Communication Mix

LocationPricing

Retail

Strategy


Economic Significance of Retailing

• Over $2.5 trillion in annual U.S. sales

-greater than medical care, housing, recreation combine

• Employs 17% of population

-about the same as manufacturing and growing

• Management training opportunities

• Entrepreneurial opportunities


Nature of Retail Industry is Changing

Mom and Pop Store

To Today’s Retailer


Retailing is a High Tech Industry

- Selling Merchandise over the Internet

- Using Internet to manage supply chains

- Analyze POS data to tailor assortments to stores

- Computer systems for merchandise planning


Globalization of Retailing

Source Merchandise From Around the World

Wal-Mart Operates in U.S., China, Mexico, UK, Germany

Carrefour has Stores in 25 Countries


Retail Environment Differs Across the Globe

US JapanConcentration High Medium

Store Size Big Small

Role of Low High

Wholesaling

Efficiency High Low


JC Penney’s Strategic Evolution

• Main Street private label soft goods retailer

• Changes in environment -- increased disposable income, growth of suburbs, interstate highway program

• Emulate Sears in enclosed suburban malls

• Focus on soft goods -- drop automotive, sporting goods, hardware

• Develop catalog, develop electronic retailing

• Future (?)


Sears’ Strategic Evolution

• Large number of merchandise categories -- appliances, hardware, apparel

• Malls evolved into places for buying soft goods, hard goods sold at category killers

• The Softer Side of Sears

• Refocused on value -- Testing carts in stores

• Acquired Lands’ End

• Reviewed training program for new managers


Whole Foods Implementation

Strategy - organic and natural foods supermarket chain

Assortment beyond organic/natural foods

Private labels - Whole Food™, 360 Day Value™

Love, trust, and employee empowerment

Equality in compensation


Hot Topic’s Retail Mix

Retail Strategy

Customer Service Location

Merchandise

Assortment

PricingCommunication

Mix

Store Design

And Display



Enclosed malls

Customer Service


PricingCommunication Mix

Store DisplayAnd Design

Location Strategy



Location


Mix


Customer Service

Many Different Hot Band

T-shirts and Accessories

Assortment Strategy



Location

Communication Mix


Customer Service

Merchandise Assortment

Modest with Sales

Pricing Strategy



Communication Mix

TV and Magazine Ads

Store DesignAnd Display



Pricing




Heavy Metal, Gothic Look


Merchandise Assortments


Mix



Customer Service

Modest

Location


Pricing

Communication Mix



Macy’s Retail Mix

Retail Strategy

Customer Service

Location





Macy’s Retail Mix

Enclosed Malls

Customer Service




Location Strategy


Macy’s Retail Mix

Location


Mix


Customer Service

Many Items in Apparel and

Soft Home

Assortment Strategy


Macy’s Retail Mix

Location

Communication Mix


Customer Service


Moderate with Frequent Sales

Pricing Strategy


Macy’s Retail Mix

Communication Mix

TV, Newspaper Ads and Special Events

Store DesignAnd Display Merchandise

Assortment

Pricing



Macy’s Retail Mix


Ring with Displays




Mix


Macy’s Retail Mix

Customer Service

Modest

Location


Pricing

Communication Mix



Wal-Mart’s Retail Mix

Retail Strategy

Customer Service

Location






Free-standing Stores

Customer Service



Mix


Location Strategy



Location


Mix


Customer Service

Large Number of Categories

Few Items in Each Category

Assortment Strategy



Location

Communication Mix


Customer Service


Low, EDLP

Pricing Strategy



Communication Mix

TV and NewspaperInsert Ads

Location

Pricing


Customer Service





Basic, Special Displays

for Products




Mix



Customer Service

Limited

Location


Pricing

Communication Mix



Career Opportunities in RetailingStart Your Own Business

• Walton Family (Wal-Mart)

• Fisher (The Gap)

• Wexner (Limited)

• Menard (Menard’s)

• Marcus, Blank (The Home Depot)

• Kellogg (Kohl’s)

• Schulze (Best Buy)

• Levine (Family Dollar)

• Gold (99Cent Only)

List of Retail Entrepreneurs on Forbes 400 Richest Americans


Misconceptions About Careers in Retailing

• Don’t need college

• Low pay

• Long hours

• Boring

• Dead-end job

• No benefits

• Everyone is part-time

• Unstable environment


Why You Should Consider Retailing

• Entry level management positions

-Department manager or assistant buyer/planner

-Manage and have P&L responsibility on your first job

• Starting pay average with great benefits

- Some retailers pay graduate school

• No two days are alike

• Buying for financially oriented people

• Management for people people


Types of Jobs in Retailing

Most entry level jobs are in store management or buying, but…

retailers also have staff specialists:

--accounting and finance

--real estate

--human resource management

--supply chain management

--advertising

--public affairs


Centro de Comercio Detallsita

• www.gda.itesm.mx/ccd

• ADMINISTRACIÓN DE MERCANCÍAS / PRECIOS: Aprenderás el manejo de compras, resurtidos e inventarios que realizan las empresas de comercio al detalle. Analizarás la tecnología que está revolucionando el retail y estudiarás la administración y el establecimiento de precios, así como el desarrollo y presentación de líneas de producto, dando especial atención a las relaciones comprador-proveedor.

• INTERNSHIP I Y II: Aplicarás tus conocimientos dentro de una empresa detallista. en el verano trabajarás 7hrs. diarias por 5 semanas en una empresa de comercio al detalle, en donde conocerás las diferentes áreas de la empresa y tendrás la oportunidad de resolver algún problema o realizar un proyecto específico.

• ADMINISTRACIÓN DE LA TIENDA Y SERVICIO AL CLIENTE: Analizarás los procesos en el manejo y administración de una tienda. Aprenderás temas relacionados con sistemas de información, recursos humanos, imagen y diseño de la tienda (visual merchandising), servicio al cliente y CRM (Customer Relationship Management), entre otros.

• ESTRATEGIA DE COMERCIO DETALLISTA MULTICANAL: Conocerás las estrategias que siguen los principales detallistas y su implicación en las ventas. Comprenderás la metodología para la ubicación de puntos de venta. Aplicarás las estrategias de publicidad y promoción que se utilizan en el comercio detallista. Además, aprenderás la nueva tendencia en el retail de administración por categorías.

PPT 1-1 Consumer Behavior Ignacio J. Vázquez E. © 2007 5 th Edition.

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Transcript of PPT 1-1 Consumer Behavior Ignacio J. Vázquez E. © 2007 5 th Edition.