Retail Management
Introduction
to Retailing
McGraw-Hill/Irwin
Levy/Weitz:
Retailing Management,
5/e
Behavior
PPT
1-1 Consumer
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Ignacio J. Vázquez E. © 2007
What is Retailing?
• Retailing – includes all the activities involved in
selling the goods&services to the final
consumer for personal,family, householduse or
for nonbusiness purpose .
• Retail – The word retail is derived from a french
word retaillier which means to cut off a piece
or to break bulk.
PPT 1-2
Consumer Behavior
Ignacio J. Vázquez E. © 2007
Examples of Retailers
• Retailers:
-Reliance Retail, KFC, McDonalds,
More,Subiksha,Spencers,VishalRetail,Bigbazar etc
• Firms that are retailers and wholesalers that
sell to other business as well as consumers:
-Metro,Office Depot(Stationery products).
PPT 1-3
Consumer Behavior
Ignacio J. Vázquez E. © 2007
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,discount etc.
PPT 1-4
Consumer Behavior
Ignacio J. Vázquez E. © 2007
How Retailers Add Value
The value of the product and service increases
as the retailer performs functions.
Doll can be bought
on credit or cash.
Doll is featured on
floor display
Doll is offered in
convenient
locations in
Doll is developed in quantities of one
several styles
Doll is developed at
manufacturer
PPT 1-5
Consumer Behavior
Ignacio J. Vázquez E. © 2007
Manufacturer’s Perspective
The Four P’s of Marketing
Retailers
Retailersare
are part
part of
of the
the
distribution channel
channel
distribution
Product
Price
Distribution
Promotion
PPT 1-6
Consumer Behavior
Ignacio J. Vázquez E. © 2007
Distribution Channel
PPT 1-4
PPT 1-7
Distribution Channel
Consumer Behavior
Ignacio J. Vázquez E. © 2007
Retailers are a Business Like Manufacturers
Accounting
Operations
PPT 1-8
Consumer Behavior
Finance
MIS
Marketing
Human Resources
Ignacio J. Vázquez E. © 2007
Decision Variables for Retailers
Customer Service
Store Design
and Display
Retail
Merchandise
Assortment
Strategy
Pricing
Location
Communication
Mix
PPT 1-9
Consumer Behavior
Ignacio J. Vázquez E. © 2007
Economic Significance of Retailing
• Over 1lak cr in sales
• Employs 7% of population
-about the same as manufacturing and growing.
• Management training opportunities
• Entrepreneurial opportunities
PPT 1-10 Consumer Behavior
Ignacio J. Vázquez E. © 2007
Nature of Retail Industry is Changing
To Today’s Retailer
Mom and Pop Store
PPT 1-11 Consumer Behavior
Ignacio J. Vázquez E. © 2007
Retailing is a High Tech Industry
- Selling Merchandise over the Internet eg:ebay
etc
- Using Internet to manage supply chains
- Analyze POS data to tailor assortments to stores
- Computer systems for merchandise planning
PPT 1-12 Consumer Behavior
Ignacio J. Vázquez E. © 2007
Retail Environment Differs Across the Globe
US
INDIA
Concentration
High
Medium
Store Size
Big
Small
Role of
Low
Low
High
Low
Wholesaling
Efficiency
PPT 1-13 Consumer Behavior
Ignacio J. Vázquez E. © 2007
Hot Topic’s Retail Mix
Customer Service
Location
Merchandise
Store Design
And Display
Retail Strategy
Communication
Assortment
Pricing
Mix
PPT 1-14 Consumer Behavior
Ignacio J. Vázquez E. © 2007
Misconceptions About Careers in Retailing
• Don’t need college
education
• Low pay
• Long hours
• Boring
• Dead-end job
• No benefits
• Everyone is part-time
• Unstable environment
PPT 1-15 Consumer Behavior
Ignacio J. Vázquez E. © 2007
Why You Should Consider Retailing
• Entry level management positions
-Department manager or FloorManager.
-Manage and have P&L responsibility on your first job
• Starting pay will be average with great benefits
- Store Staff are hired from XII Class onwards.
• No two days are alike.
• Worklife is challenging everyday.
• Management of people is a major role.
PPT 1-16 Consumer Behavior
Ignacio J. Vázquez E. © 2007
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/Landteam
--human resource management
--supply chain management
--advertising/promotions
--public affairs
PPT 1-17 Consumer Behavior
Ignacio J. Vázquez E. © 2007