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The World of Retailing
Introduction to Retailing
Types of Retailers
Multi-Channel Retailing
1-3
Questions
Ŷ What is retailing?
Ŷ What do retailers do?
Ŷ Why is retailing important in our society?
Ŷ What career and entrepreneurial opportunities
does retailing offer?
Ŷ What types of decisions do retail managers
make?
1-4
What is Retailing?
1-5
Examples of Retailers
Retailers:
ohl¶s, Macy¶s,
Wendy¶s,
Amazon.com, Jiffy
Lube, AMC Theaters,
American Eagle
Outfitter, Avon, J.Crew
]istribution Price
Promotion
1-7
Distribution Channel
1-8
Typical Supply Chain Network
Customers
6uppliers Plants
retailers
]istribution
Centers
A Retailer¶s Role in a Supply Chain
1-10
Manufacturing, Wholesaling and Retailing
1-12
Why Not Get Rid of the Middlemen?
C
: : :
ABetter services to
customers
AMore efficient
1-14
Music Industry Channel
Composer Record
Publisher Music Retailer
Lyricist Company
Artist ]istributor
1-15
Cost for CD
Retailer $5.00
Record Company
4 out of 5 C]s fail to
Manufacturing .75 make a profit
]istribution 1.50
Marketing 2.00 $300,000 cost to
Coop advertising 1.00 prepare a C] for
Artist/Repertoire 1.00 release
Artist royalty 1.25
Lyricist .75 30,000 recording
Overhead/Profit 2.00
artists
Total 15.25
1-16
How Retailers Add Value
Ŷ Provide Assortment
Buy other products
at the same time
Ŷ Break Bulk
Buy it in quantities
customers want
Ŷ Hold Inventory
Buy it at a
convenient place
when you want it
Ŷ Offer 6ervices
See it before you
buy; get credit;
layaway
Ryan Mcway/Getty Images
1-17
How Retailers Add Value
Bicycle is featured
on floor display
Bicycle is offered in
convenient locations
in quantities of one
Bicycle is
developed in
several styles
Bicycle is developed
at manufacturer
1-18
Examples: How Retailers Add Values
BagBorrowerSteal.com
jewelry and bag rental; Get (not buy, but borrow) exactly what you
want
Home Depot
DIYer (Do-it-yourselfer); Learn how to do it yourself with in-store
clinics and online workshops
1-19
Social and Economic Significance of Retailing
Retail Sales:
Over $4.1 trillion in annual
people in 2005
One of the largest sectors
1-20
Social responsibility
1-21
World¶s 20 Largest Retailers in 2005
1-22
Structure of Retailing and Distribution Channels around the
World: The United States
1-23
Comparison of Distribution Channels
around the World
1-24
What have created these differences
in distribution systems?
1-25
Nature of Retail Industry is Changing
To Today¶s Retailer
1-26
Retailing is a High Tech Industry
1-27
Retailers are a Business Like
Manufacturers
Accounting inance
Marketing
MI6
Operations
Human Resources
1-28
Opportunities in Retailing:
Management opportunities
Purchase
Accounting
Ŷ Financially rewarding
5-year salary of buyers: $50,000 - $60,000
1-29
Opportunities in Retailing:
Entrepreneurial opportunities
Wal-Mart: Sam Walton
Ŷ Retailing provides opportunities for
people who want to start their own
business
Ŷ Some of the world¶s richest people
are retailing entrepreneurs
1-30
Career Opportunities in Retailing
Start Your Own Business
1-31
Misconceptions About Careers in Retailing
Ŷ Unstable environment
Ŷ No opportunity for women and minorities
1-32
Why You Should Consider Retailing
1-33
Types of Jobs in Retailing
1-35
Strategic Vs Tactical Decisions
1-36
Retail Strategy
Ŷ Identifying customers
A What are the significant
demographic and life-style
trends
A Who are your target
customers
1-37
Retail Strategy
1-38
JC Penney¶s Strategic Evolution(1)
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JC Penney¶s Strategic Evolution(2)
1-40
Wal-Mart¶s Strategic Evolution
1-41
Sears¶ Strategic Evolution
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Whole Foods Implementation
1-43
Decision Variables for Retailers
Customer 6ervice
Communication
Mi
1-44
Wal-Mart¶s Retail Mix
Customer Location
6ervice
Communication Pricing
Mi
1-45
Wal-Mart¶s Retail Mix
Location Strategy
ree-standing 6tores
Customer
Service
Communication
Mix Pricing
1-46
Wal-Mart¶s Retail Mix
Assortment 6trategy
Customer
Service Location
Large Number
Store Design
and Display
of Categories
ew Items
Communication
Mix Pricing
in Öach Category
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Wal-Mart¶s Retail Mix
Location
Pricing Strategy
Customer
Merchandise
Service
Assortment
Store Design
and Display
Communication
Mix Low, Ö]LP
1-48
Wal-Mart¶s Retail Mix
Customer
Service Location
Communication Mix
Store Design Merchandise
and Display Assortment
Pricing
Tw and Newspaper
Insert Ads
1-49
Wal-Mart¶s Retail Mix
Customer
Service Location
Basic, 6pecial
Merchandise
]isplays Assortments
for Products
Communication
Mix Pricing
1-50
Wal-Mart¶s Retail Mix
Customer Service
Limited
Location
Merchandise
Assortment
Store Design
and Display Pricing
Communication
Mix
1-51
Claire¶s Retail Mix
Communication Mi Pricing
1-52
Claire¶s Retail Mix
Location 6trategy
Önclosed malls
Customer Service
Store Display
And Design Merchandise
Assortment
Communication Mix
Pricing
1-53
Claire¶s Retail Mix
Assortment 6trategy
Customer Service
Location
teens
Communication Mix
Pricing
1-54
Claire¶s Retail Mix
Location
Pricing 6trategy
Customer Service
Merchandise Assortment
Store Design
and Display
Communication Mix
1-55
Claire¶s Retail Mix
Customer Service
Location
Pricing
1-56
Claire¶s Retail Mix
boutique layout
1-57
Claire¶s Retail Mix
Customer 6ervice
Modest
Location
Merchandise Assortment
Pricing
Communication Mix
1-58
Macy¶s Retail Mix
Pricing
Communication Mi
1-59
Macy¶s Retail Mix
Location 6trategy
Önclosed Malls
Customer Service
Store Display
And Design Merchandise
Assortment
Communication Mix
Pricing
1-60
Macy¶s Retail Mix
Assortment 6trategy
Customer Service
Location
Communication Mix
Pricing
1-61
Macy¶s Retail Mix
Location
Pricing 6trategy
Customer Service
Merchandise Assortment
Store Design
and Display
Communication Mix
Moderate with
requent 6ales
1-62
Macy¶s Retail Mix
Customer Service
Location
Pricing
1-63
Macy¶s Retail Mix
1-64
Macy¶s Retail Mix
Customer 6ervice
Modest
Location
Merchandise Assortment
Pricing
Communication Mix
1-65
Target¶s Retail Mix
Communication Mi Pricing
1-66
Target¶s Retail Mix
Location 6trategy
ree-standing 6tores
Customer Service
Store Display
And Design Merchandise
Assortment
Communication Mix
Pricing
1-67
Target¶s Retail Mix
Assortment 6trategy
Customer Service
Location
Store Design
Large Number of Categories
and Display
Private Labels
ew Items in Öach Category
Communication Mix
Pricing
1-68
Target¶s Retail Mix
Location
Pricing 6trategy
Customer Service
Merchandise Assortment
Store Design
and Display
Communication Mix
Low to Modest
1-69
Target¶s Retail Mix
Communication Mi
Tw and Newspaper
Insert Ads
1-70
Target¶s Retail Mix
1-71
Target¶s Retail Mix
Customer 6ervice
Limited
Location
Merchandise Assortment
Pricing
Communication Mix
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Ethical Situations for a Retail Manager
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Checklist for Making Ethical Decisions
1-74
You are Faced with an Ethical Decision:
What Can You Do?
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