Chapter 1
• Define Retailing
– Various Perspectives
– Impact
– Special Characteristics
• Concept of Strategic Planning
• Relate Marketing Concept to Retailing
– Total Retail Experience
– Customer Service
– Relationship Retailing
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.
• Opportunities
– Start New Business
– Franchising
– Globalization
• Challenges
– Bored Consumers
– Time Poor Society
– Too Many Stores
– High Consumer Expectations
• Tangible Goods
• Services
• Does NOT Always Include
– Store
– Retailer
• Traditional Retailers
– Sales $3 Trillion in U.S
• Non-Traditional Retailers
– Sales $250 Billion
• Other Services
– Several Hundred Billion
• Major Source of Jobs
Manufacturer
Wholesaler
Retailer
Final
Consumer
• Divergent Viewpoints
• Types of Distribution
– Exclusive
– Intensive
– Selective
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Competition in the Marketplace
Product Image
Slotting Allowances
Distribution Rights
• Management
• Operations
• Merchandising
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Providing Assortment
Breaking Bulk
Providing Service
Holding Inventory
Manufacturer
Brand A
Brand A
Customers
Wholesaler
Manufacturer
Brand B
Brand B
Customers
Manufacturer
Brand C
Wholesaler
Retailer
Brand C
Customers
Manufacturer
Brand D
Brand D
Customers
Manufacturer
Brand E
Brand E
Customers
Wholesaler
Manufacturer
Brand F
Brand F
Customers
Small Average Sales
Impulse Purchases
Retailer’s
Strategy
Popularity of Stores
• Define Business Type
• Set Objectives
– Long-Term
– Short-Term
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Determine Customer Market
Devise Overall, Long-Run Plan
Implement Integrated Strategy
Evaluate Performance
Customer Orientation
Coordinated Effort
Retailing
Concept
Value-Driven
Goal Orientation
Retail
Strategy
Includes all the elements in a retail
offering that encourage or inhibit
consumers during their contact with a
retailer
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Intangible
Perishable
Inseparable
Inconsistent
Satisfaction Based on:
– Expectation
– Past Experience
– Perceptions
• Total Retail Experience
• Monitor Customer
Satisfaction
• Stay in Touch with Customers
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Do We Trust Our Customers?
Do We Stand Behind What We Sell?
Do We Stress Promise-Keeping in Our Firm?
Do We Value Customer Time?
Do We Communicate with Customers Respectfully?
Do We Respect ALL Customers?
Do We Thank Customers for Their Business?
Do We Respect Employees?
• The Definition of Retailing
– Various Perspectives
– Impact
– Special Characteristics
• Concept of Strategic Planning
• How the Marketing Concept Relates
to Retailing
– Total Retail Experience
– Customer Service
– Relationship Retailing
Questions?
Questions?