Exploring Retail Marketing
Retailing 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.
Food
Shelter
Clothing
The earliest form of retailing was trading.
4
What Is Retailing?
Retailing involves the
selling of products.
Products include goods
and services.
retailing the selling of
products to the customer
products goods and
services that have
monetary value
goods tangible items
that are made,
manufactured, or grown
5
What Is Retailing?
Services are often
intangible.
services intangible
things that people do for
us that make us feel
better or enhance our
lives
The retailing process ends
with the retail customer.
retail customer
purchaser of goods and
services from retailers
6
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.
7
Peddling Merchandise
Operating an e-tail business on an
Operating an e-tail business on an electronic channel—the
electronic channel—the Web—can
Web—can be costly, due to design, delivery, returns, and
operating expenses.be costly, due to design, delivery,
returns, and operating expenses.
Though Many larger dot-com companies crashed in the
Though many larger dot-com companies crashed in the
1990’s, small stores like Harris Cyclery of West Newton,
1990s,
small stores
such as
Harris Cyclery
of West
Newton,
Massachusetts,
actually
increase
sales using
a basic
Web
Massachusetts,
actually
increased
sales
using arides
basicinWeb
site. Today, a third
of Harris’s
bicycle
business
on
site.
third
of Harris’sparts
bicycle
rides in on
theToday
Web toa get
hard-to-find
and business
personal service.
the Web to get hard-to-find parts and personal service.
Describe an e-business’s home page to your class after
viewing
one throughon
marketingseries.glencoe.com.
For
more information
retailing,
go to marketingseries.glencoe.com.
8
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.
9
Retailing Is High Tech
Retailers use:
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.
10
Retailers Are Everywhere
Your
computer
Your
clothing
Your
transportation
to school
Your
CDs
Your
bed
Goods and Services Available Through Retailing
Your
toothbrush
Your
breakfast
Your
textbooks and
school
supplies
Your
television
programs
11
1.
Define retailing.
2.
What is the difference between goods and
services?
3.
Name some types of retailers.
12
Nature of Retailing
Products move from the
manufacturer through
channels of distribution.
Channels of distribution
can be direct and indirect
channels of distribution.
manufacturer business
that makes or produces
a good for sale
channel of distribution
path merchandise takes
from where it is made to
the consumer
direct channel path that
leads directly from
manufacturer to consumer
indirect channel path
that follows more than
one step
13
Nature of Retailing
A product moves from the
manufacturer to a
wholesaler, to the retailer,
and to the consumer.
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
channel of distribution.
producer channel
manufacturer also owns
its retail stores; product
goes from manufacturer
to retail store to customer
14
Benefits of Retailing

Convenience


Variety
Payment options
Locations
Competitive pricing
Community
Economy

Employment
Involvement

Jobs

15
What Retailers Do
Buy
Merchandise
Hire and
Manage
Employees
Manage
Risk
Determine
Selling Price
Store
Goods
Purchased
Display
Merchandise
Retailers
Provide
Customer
Service
Advertise and
Promote
Products
Service
Products
Sell Goods or
Services
16
Career Areas of Retailing
Marketing and Advertising
Store Operations
Loss Prevention
Store Management
Finance
Human Resources
IT and E-commerce
Sales
Distribution, Logistics, and Supply-Chain Management
Merchandise Planning and Buying
Entrepreneurship
17
1. What is the most important characteristic that
all retailers share?
2. What are the three benefits of retailing?
3. Describe at least three tasks that retailers
perform.
18
Checking Concepts
1. Define retailing.
2. Describe the difference
between goods and
services.
3. Name the channels of
distribution.
4. Explain three benefits
of retailing.
continued
1. direct
2.
3.
4.
Retailing
Goods
channel,
arebenefits
is items
the
selling
that
indirect
to
customers
areofchannel,
made,
goods
by
or services
manufactured,
and
making
producer
shopping
to the
or
final customer.
grown
channel.
easier
with
which
people want to buy
convenient
and use. Services
locations
and times
areshop,
to
things
and
that
by
make uscompetitive
offering
feel better
or enhance our
prices.
lives in some way.
19
Checking Concepts
5. List three tasks of
retailers.
6. Identify two ways
retailers use computers.
7. Describe the difference
between a manufacturer
and a wholesaler.
continued
5. They
6.
7.
A manufacturer
Retailers
use buy
merchandise
computers
makes
or produces
to or
keep
products;
track
a
product
of inventory
for sale.
determine
and
A
wholesaler
to gather
selling
buys
price; quantities
important
large
and data
advertise
of a
and promote
about
product
their
and then
products
customers’
resells
it in
and
small
buying
services.
habits
quantities
to make
to
buying decisions
retailers
who sell it
forthe
to
a store.
customer.
20
Checking Concepts
Critical Thinking
8. Explain how retailing
has become global.
8. Answers may vary
but should include
that retailing has
become global due
to advances in
communications
and the Internet.
21
22
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