What is retailing?
Chapter 1
Question
• Have you ever considered owning your own
shop?
• What kind of shop?
• Do you think it would be fun?
• Do you think it would be hard work?
• What duties do you think would be
involved?
( hand in at end of class )
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.
Section 1.1
Exploring Retail
Marketing
Retailing Is Everywhere
Do we agree?
What are some examples of retailing?
Classroom Guide for Participation and Note Taking
Red = Title for section
Green = Class participation
Blue = Take Notes
What is Retailing?
Key Terms
• Retailing - the selling of products to the customer.
• Products – include goods and services.
• Goods – tangible items that are made, manufactured, or grown that
people want to buy and sue.
• Services – are things that people do for us that make us feel better
or enhance our lives in some way.
• Retail customer – is the purchaser of the goods and services from
retailers.
Examples of goods?
Examples of services?
Examples of both goods and services?
Retailing is Global
• People all over the world engage in some type of retailing.
• How so?
• Examples?
• Experiences?
• Top 100 Retailers in 2013
Internet Retailers
• Internet retailers sell their goods and services through the
Internet.
• Customers browse the Web sites and makes purchases right
there.
Do you think internet
retailers or e-tail stores
have disadvantages?
Catalog Retailers
• Catalog Retailers sell their products through the mail or other
delivery services.
• They appeal to customers who choose to spend their free
time in ways other than shopping in stores.
• Enables customers to shop from any location on earth at any
time of the day or night.
Retailing is High Tech
• Use technology to increase customer base and ease
purchasing.
• Retailers make use of video technology to train their
employees
• Retailers use computers to track inventory and orders.
• Retailers use scanners and cash registers to complete sales
transactions.
• Retailers use computers to gather information about
customers and their demographics.
Quick Check
• Define retailing.
• What is the difference between goods and services?
• Name some types of retailers.
• How have retailers been able to expand global
business?
(Hand in at end of class).
Retailing and Its
Benefits
Section 2
Nature of Retailing
• The most important characteristic that all
retailers share
• is the desire to make their products available
to their customers when the customer wants
them and where they want them.
Channels of Distribution
Direct Channel
Manufacturers/Producers
Consumers
Retailers
Wholesaler
Agents
Consumers
Retailers
Retailers
Wholesalers
Consumers
Consumers
Retailers
Consumers
Indirect Channel
Channels of Distribution
• Avon Company – Direct - Manufacturer
• Florist – Indirect – Wholesalers or Retailers
• Costco – Direct - Manufacturer
Benefits to Customers
• Stores
•
•
•
•
•
•
Browsing
Touching and feeling products
Personal service
Cash payment
Immediate Gratification
Entertainment and social interaction
• Catalog
•
•
•
•
Convenience
Portability
Safety
Visual presentation
Benefits to Customers
• Internet
•
•
•
•
•
•
Convenience
Safety
Broad selection
Detailed information
Personalization
Problem solving information
Benefits to the Community
• Provide a source of employment for teenagers and adults.
• Support community activities. Examples sponsor for a team
Benefits to the Economy
• Employees who work also spend money in their community
• Needs and wants
• Holiday season
What Retailers Do
1
2
3
4
5
Buying Merchandise - Determine what merchandise will be
purchased, when, and in what quantities.
Determining Selling Price – Determine a selling price fair to
the customer but allow retailer to make profit.
Storing Goods Purchased – Goods in large quantities are
stored while some are displayed for sale.
Advertising and Promoting Products – Promote product or
service so customers are made aware of what is being
offered.
Displaying Merchandise – Display of goods in a neat and
attractive manner.
What Retailers Do
6. Selling Goods or Services – Selling requires knowledge of
product and friendly staff.
7. Servicing Products – Keeping products in working condition
and customer happy.
8. Providing Customer Services – Servicing customer includes
accepting credit cards, delivery, etc.
9. Risk Management – Risk of product arriving at store, risk of
fire, and theft.
10. Hiring and Managing Employees – Hire reliable, friendly and
honest employees.
Career Areas of Retailing
• Marketing and Advertising – involve persuading or convincing
people to buy; publicity, visual merchandising, promoting
• Store Operations – physical site operations, heating and air
conditioning, paint, floors
• Loss Prevention – prevention of shoplifting
• Store Management – deals with day to day operation;
managing employees, cash in register
• Finance – tracking and paying invoices, calculating discounts,
profits
Career Areas of Retailing
•
•
•
•
Human Resource – interviewing, hiring, training employees
It and E-Commerce – internet marketing, web design
Sales – selling to the customers
Distribution, Logistics, and Supply Chain Management –
warehouse functions and getting merchandise to retail store
• Merchandise Planning and Buying – planning on what to buy
and quantities
• Entrepreneurship – owning and operating your own business
Math Check
• You just bought a new bicycle for
$250 plus 8 % sales tax. Assembly
costs $35. What is your total bill?
Answer
• 250 x 1.08 = $270
• $ 270 + $35 = $305
Math Check
• Abdul bought five T-shirts ($9 each)
and two pairs of jeans ($22 each)
from the Old Navy. What is the total
cost of the T-shirts and jeans? (Do not
include tax.)
Answer
• $9 x 5 = $45
• $22 x 2 = $44
• $45 + $22 = $89 total
Quick Check
1. What is the most important characteristic that all retailers
share?
2. What are three benefits of retailing?
3. Describe at least three tasks that retailers perform.
(Hand in at end of class)