Introduction to Retailing
How retailing adds value
The nature of retailing
Definition of retailing
What is retailing?
Benefits of retailing to …
The consumer
The manufacturers and retailers
When selling a product, what are you
really selling
You
Course Structure
Retailing Careers
The Nature of Retailing
A set of business activities that adds value
to the products and services sold to
consumers for their personal use
A retailer is a business that sells products
and/or services to consumers for personal
or family use
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Introduction to Retailing
Traditional B&M retailers?
Non-store-based retailers?
Firms that sell to other businesses as
well as consumers?
Retailers that we don’t think of as
retailers?
Breaking bulk – provide product in
quantities consumers want
Hold inventory – provide product at a
convenient place
Provide assortment – provide a variety
of products
Offer services – see before you buy,
get credit, layaway
!
"#
$
$
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Introduction to Retailing
$.80
$.20
$.20
$.15
$.15
$.15
$.85
$.85
$.85
Manufacturer
Wholesaler
Retailer
Price:
$2.00
Consumer
%
!
"#
&
$
Accounting
Finance
Marketing
Operations
MIS
HR
'
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Introduction to Retailing
$
Over $2.5 trillion annually
> medical care + housing + recreation
Employs 17% of the population
About the same as manufacturing
Management training opportunities
Entrepreneurial opportunities
(
$
Technology in supply-chain
management
Using POS data to tailor assortments to
Stores
Consumers
Computer systems for merchandise
planning
e-Retailing
%
Kiosk
Shop
Dept Store
Mall
Discount Chain
Internet
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Introduction to Retailing
You
Course Structure
Retailing Careers
The Nature of Retailing
#
$
Don’t need college
Low pay
Long hours
Boring
Dead-end job
No benefits
Unstable environment
&
'
(
)
U.S. college graduates
Business Degree (BS, and MBA)
20 Universities participating
Mail questionnaires
7266 respondents in final sample
Focused on marketing positions
Work week
Compensation
Burnout
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Introduction to Retailing
*
'
'
+ $
Entry level management positions
Department manager or assistant buyer
Manage people and have P&L responsibility
on your first job
Stores jobs vs corporate jobs
Buying
Accounting, finance, real estate
Human resource management
Computer information systems
Supply chain management
Advertising and public relations
Stores Jobs
Fast paced,
action-oriented
Immediate
feedback
People business
Uneven work
hours
Corporate Jobs
Slower paced
Postponed or no
feedback
Task-oriented
business
Traditional
business hours
Starting pay average, but compensation can become
excellent
Something new and different each day
%
You
Course Structure
Retailing Careers
The Nature of Retailing
&
Page I - 6
Introduction to Retailing
(
Two nonnon-comprehensive exams
Occasional team assignments
Short cases
Team consulting project
–
–
–
Qualitative research – focus groups
Survey research based on above
Final presentation
'
(
$)
http://marriottschool.byu.edu/teacher/swinyard
(
,
The business activities
involved in selling goods
and services to
consumers for their
personal, or household
use. It includes every
sale of goods and
services to the final
consumer.
consumer.
Manufacturer
Wholesaler
2.4 Million Retailers
Generate $3
Trillion in Sales*
Retailer
Final
Consumer
*Sources: Berman & Evans, Retail Management,
U.S. Department of Commerce, 1995
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Introduction to Retailing
Retailing
Benefits
Customers
Bulk breaking
Assorting
Storing
Informing
Services
Retailing benefits
customers, manufacturers,
and wholesalers and creates
economic utility.
Manufacturers
& Retailers
Distributes goods &
information
Absorbs risks:
- Physical deterioration
- Fashion Change
- Technological
obsolescence
Smoothes production cycle
Creates
Customer
Utility
Form
Place
Time
Possession
What are retailing’s benefits in these areas?
Retailing is not
selling products
… it is supplying
customer
satisfaction
(
Up to 3 people
Good mix of skills
Computer-literate
Creative & design
Detail-oriented
Able to work well together
Can accommodate each other’s
schedules
Next week
Names, phone numbers, e-mail
addresses
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Introduction to Retailing
You
Course Structure
Retailing Careers
The Nature of Retailing
Page I - 9