Copyright 2012 by The McGraw-Hill Companies, Inc.
All rights
4th
Edition
reserved.
MANAGEMEN
RETAILING
Cases
andCases
Swapna Pradhan
Textand
T
Text
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
reserved.
AN OVERVIEW
OF R ETAIL
0
1
LEARNING OBJECTIVES
The meaning of retail
The functions of a retailer
The significance of retail as an industry
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
The role of the retailer in todays global
economy
Key issues facing global retailers
Retail as a career
reserved.
WHAT IS RETAIL?
Retail is derived from the French word retailer,
which means to break bulk.
Retailing may be understood as the final step in the
distribution of merchandise for consumption by the
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
end consumers.
Any firm that sells products to the final consumer is
performing the function of retailing.
It consists of all activities involved in the marketing
of goods and services directly to the consumers for
their personal, family or household use.
reserved.
WHAT IS RETAIL?
Retailing is said to encompass the
business activities involved in selling
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
goods and services to consumers for
their personal, family or household
use.
- Berman and Evans
reserved.
WHAT IS RETAIL?
Retailing includes all the activities involved
in selling goods or services to the final
consumers for personal, non-business use. A
retailer or retail store is any business
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
enterprise whose sale volume comes
primarily from retailing. Any organisation
selling to final consumers whether it is a
manufacturer, wholesaler or retailer is
doing retailing. It does not matter how the
goods or services are sold (by person, mail,
telephone vending machine or internet or
reserved.
where they are sold in a store, on the
THE MARKETING RETAIL
EQUATION
Manufacturer Manufacturer Manufacturer
Manufacturer Manufacturer Manufacturer
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
Wholesaler
Wholesaler
Retailer
Retailer
Feedback
Retailer
Retailer
Consumer Consumer Consumer
Consumer Consumer Consumer
reserved.
THE ROLE OF THE RETAILER
Link Between
Producer and
Consumer
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
The
Retailer
The Retailer The Retailer
as a Channel as an Image
Member Creator
reserved.
THE RETAILER AS A LINK BETWEEN THE
PRODUCER AND THE CONSUMER
Form utility- by offering assortment of
finished goods and services in a form that
customers want
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
Time utility- by keeping the store open
when the consumers prefer to shop
Place utility- by being available at a
convenient location
Ownership utility- by selling the product
Serves the manufacturer- by
distributing the goods to the end consumer
reserved.
THE RETAILER AS A
CHANNEL MEMBER
The retailer serves the manufacturer
by performing the function of
distributing the goods to the end
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
consumer, and thus forming a channel
of information to the consumer. He is
the final link in the distribution chain
and very vital too. For several product
categories where brand loyalty is not
very strong or for unbranded products,
the retailers recommendation is vital.
reserved.
THE RETAILER AS AN
IMAGE CREATOR
It is important for the retailer and for the
manufacturer first determine what the
store stands for and accordingly work
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
around the merchandise and the
marketing aspects.
There are two specific dimensions to retail
marketing, first how to attract customers
into the retail environs (shop, restaurant,
supermarket or the virtual internet store)
and second how to persuade those
reserved.
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
reserved.
THE TRANSITION OF POWER
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
reserved.
THE RISE OF THE RETAILER
REASONS FOR
THE RISE OF THE RETAILER
Proximity to the Customer
The Rise of Consumerism
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
The Introduction of the Private
Label
Technology
Globalisation
Retailers are no longer dependent on the
reserved.
manufacturers to sell what is available and have
CHALLENGES FACED BY
RETAILERS WORLDWIDE
The emergence of new markets
The empowered consumer
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
Technology-enabled efficiencies
The rise of the e-age
reserved.
RETAIL AS A CAREER
Buying and Merchandising
Marketing
Store Operations
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
Sales
Finance
Human Resources
Technology and e-commerce
Visual Merchandising
Supply Chain Management and
reserved.
