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. Vzquez 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.

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Consumer Behavior

Ignacio J. Vzquez 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).

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Consumer Behavior

Ignacio J. Vzquez 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.
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Ignacio J. Vzquez 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
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Ignacio J. Vzquez E. 2007

Manufacturers Perspective
The Four Ps of Marketing
Retailers Retailersare are part part of of the the distribution channel channel distribution Product

Distribution

Price

Promotion

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Ignacio J. Vzquez E. 2007

Distribution Channel
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Distribution Channel

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Consumer Behavior

Ignacio J. Vzquez E. 2007

Retailers are a Business Like Manufacturers

Accounting

Finance

Marketing

Operations

MIS

Human Resources

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Consumer Behavior

Ignacio J. Vzquez E. 2007

Decision Variables for Retailers

Customer Service

Store Design and Display

Retail
Strategy

Merchandise Assortment

Pricing

Location

Communication Mix
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Ignacio J. Vzquez 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. Vzquez E. 2007

Nature of Retail Industry is Changing

To Todays Retailer

Mom and Pop Store

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Ignacio J. Vzquez 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. Vzquez E. 2007

Retail Environment Differs Across the Globe

US
Concentration High

INDIA
Medium

Store Size

Big

Small

Role of Wholesaling

Low

Low

Efficiency
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High

Low
Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

Customer Service

Location

Store Design

Merchandise

And Display

Retail Strategy

Assortment

Communication Mix
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Pricing

Ignacio J. Vzquez E. 2007

Misconceptions About Careers in Retailing

Dont need college education

Low pay
Long hours Boring Dead-end job No benefits Everyone is part-time Unstable environment

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Ignacio J. Vzquez 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.
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Ignacio J. Vzquez 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. Vzquez E. 2007