Marketing bán hàng - Chapter 1: Introduction to the world of retailing

1Chapter 1Introduction to the World of RetailingThe World of RetailingIntroduction to RetailingTypes of RetailersMulti-Channel RetailingCustomer Buying Behavior3What is Retailing?Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use.A retailer is a business that sells products and/or services to consumers for personal or family use. James Darell/Getty Images4The Distribution Channel5Examples of Retailers Retailers: Kohl’s, Macy’s, Wendy’s, Amazon.com, Jiffy Lube, AMC Theaters, American Eagle Outfitter, Kroger Firms that are retailers and wholesalers that sell to other business as well as consumers: Office Depot, The Home Depot, United Airlines, Bank of America, Costco The McGraw-Hill Companies, Inc./Andrew Resek, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographer 6Manufacturing, Wholesaling and RetailingVertical Integration – firm performs more than one set of activitiesEx: retailer invests in wholesaling or manufacturingBackward Integration – retailer performs some distribution and manufacturing activitiesEx: JCPenney sells Arizona jeans (Private Label)Forward Integration – manufacturers undertake retailing activitiesEx: Ralph Lauren operates its own stores7How Retailers Add ValueBreak Bulk -Buy it in quantities customers wantHold Inventory -Buy it at a convenient place when you want itProvide Assortment -Buy other products at the same timeOffer Services -See it before you buy, get credit, layawayRyan McVay/Getty Images8How Retailers Add Value The value of the product and service increases as the retailer performs functions.Bicycle is developed at manufacturerBicycle is developed in several stylesBicycle is offered in convenient locations in quantities of oneBicycle is featured on floor displayBicycle can be bought on credit or put on layaway9World’s Largest Retailers10Social and Economic Significance of RetailingCommunity SupportOver $3.4 trillion in annual U.S. sales greater than medical care, housing, recreation combinedEmploys 27 million people 21% of non-agricultural US workforceManagement training opportunitiesEntrepreneurial opportunities11Retailing is Big Part of EconomyServices (45.8%)Manufacturing (11.2%)Retail (21.8%)Government (16.6%)Other 5.6%12Retailers are a Business Like ManufacturersAccountingMarketingFinanceHuman ResourcesOperationsMISThe McGraw-Hill Companies, Inc./Andrew Resek, photographer13Nature of Retail Industry is ChangingMom and Pop StoreTo Today’s Retailer14Retailing is a High Tech IndustrySelling Merchandise over the InternetUsing Internet to manage supply chainsAnalyze POS data to tailor assortments to storesComputer systems for merchandise planningRyan McVay/Getty Images15Globalization of RetailingSource Merchandise From Around the WorldWal-Mart Operates in U.S., China, Mexico, UK, GermanyCarrefour has Stores in 25 CountriesDon Farrall/Getty Images16Comparison of Distribution Channels Across the Globe17Retail Management Decision Process18JCPenney’s Strategic EvolutionMain Street private label soft goods retailerChanges in environment -- increased disposable income, growth of suburbs, interstate highway programEmulate Sears in enclosed suburban mallsFocus on soft goods -- drop automotive, sporting goods, hardwareDevelop catalog, develop electronic retailingStand alone storesCentralized checkout 19Sears Holdings’ Strategic EvolutionLarge number of merchandise categories -- appliances, hardware, apparelMalls evolved into places for buying soft goods, hard goods sold at category killersThe Softer Side of SearsRefocused on value -- Testing carts in storesAcquired Lands’ EndReviewed training program for new managersNew growth with Kmart20Organic and natural foods supermarket chainAssortment beyond organic/natural foodsPrivate labels - Whole Food™, 360 Day Value™Love, trust, and employee empowermentAlways innovation: Candy Island Lamar Street Greens Fifth Street Seafood In-store Massage TherapistWhole Foods Implementation21Claire’s Retail MixRetail StrategyCustomer ServiceLocationMerchandiseAssortmentPricingCommunication MixStore Designand Display22Claire’s Retail MixEnclosed mallsCustomer ServiceMerchandiseAssortmentPricingCommunication MixStore DisplayAnd DesignLocation Strategy23Claire’s Retail MixLocationPricingCommunication MixStore Design and DisplayCustomer Service Jewelry, accessories and cosmetics for tweens and teensAssortment Strategy24Claire’s Retail MixLocationCommunication MixStore Design and DisplayCustomer ServiceMerchandise AssortmentModest with SalesPricing Strategy25Claire’s Retail MixCommunication MixTV and Magazine AdsStore DesignAnd DisplayCustomer ServiceLocationMerchandise AssortmentPricing26Claire’s Retail MixStore Design and DisplayBright, fashionable and funboutique layoutCustomer ServiceLocationMerchandise AssortmentsPricingCommunication Mix27Claire’s Retail MixCustomer ServiceModestLocationMerchandise AssortmentPricingCommunication MixStore Design and Display28Macy’s Retail MixRetail StrategyCustomer ServiceLocationMerchandiseAssortmentPricingCommunication MixStore Designand Display29Macy’s Retail MixEnclosed MallsCustomer ServiceMerchandiseAssortmentPricingCommunication MixStore DisplayAnd DesignLocation Strategy30Macy’s Retail MixLocationPricingCommunication MixStore Design and DisplayCustomer ServiceMany Items in Apparel and Soft HomeAssortment Strategy31Macy’s Retail MixLocationCommunication MixStore Design and DisplayCustomer ServiceMerchandise AssortmentModerate with Frequent SalesPricing Strategy32Macy’s Retail MixCommunication MixTV, Newspaper Ads andSpecial EventsStore DesignAnd DisplayMerchandise AssortmentPricingCustomer ServiceLocation33Macy’s Retail MixStore Design and DisplayRacetrack with DisplaysCustomer ServiceLocationMerchandise AssortmentsPricingCommunication Mix34Macy’s Retail MixCustomer ServiceModestLocationMerchandise AssortmentPricingCommunication MixStore Design and Display35Target’s Retail MixRetail StrategyCustomer ServiceLocationMerchandiseAssortmentPricingCommunication MixStore Designand Display36Target’s Retail MixFree-standing StoresCustomer ServiceMerchandiseAssortmentPricingCommunication MixStore DisplayAnd DesignLocation Strategy37Target’s Retail MixLocationPricingCommunication MixStore Design and DisplayCustomer ServiceLarge Number of CategoriesPrivate Labels Few Items in Each CategoryAssortment Strategy38Target’s Retail MixLocationCommunication MixStore Design and DisplayCustomer ServiceMerchandise AssortmentLow to ModestPricing Strategy39Target’s Retail MixCommunication MixTV and Newspaper Insert AdsStore DesignAnd DisplayCustomer ServiceLocationMerchandise AssortmentPricing40Target’s Retail MixStore Design and DisplayColorful, wide aisles displaysfor products with a grid layoutCustomer ServiceLocationMerchandise AssortmentsPricingCommunication Mix41Target’s Retail MixCustomer ServiceLimitedLocationMerchandise AssortmentPricingCommunication MixStore Design and Display42Ethical Situations for a Retail ManagerShould a retailer sell merchandise that is suspects was made using child labor?Should it advertise that its prices are lowest in area even though some items are not?Should a buyer accept an expensive gift from a vendor?Should salespeople use high-pressure sales when they know the product is not the best for the customer’s needs?Should a retailer give preference to minorities when making a promotion decision?Should a retailer treat some customers better than others?43Checklist for Making Ethical Decisions44You are Faced with an Ethical Decision: What Can You Do?Ignore your personal values and do what your company asks you to do – you will probably feel dissatisfied with your job .Take a stand and tell your employer what you think. Work to change the policies.Refuse to compromise your principles – you could lose your job!45Career Opportunities in RetailingStart Your Own BusinessWalton Family (Wal-Mart)Fisher (The Gap)Wexner (limited)Menard (Menard’s)Marcus, Blank (The Home Depot)Kellogg (Kohl’s)Schulze (Best Buy)Levine (Family Dollar)Gold (99Cent Only)List of Retail Entrepreneurs on Forbes 400 Richest Americans46Misconceptions About Careers in RetailingDon’t need collegeLow payLong hoursBoringDead-end jobNo benefitsEveryone is part-timeUnstable environmentNo opportunity for women and minoritiesThe McGraw-Hill Companies, Inc./Andrew Resek, photographer47Why You Should Consider RetailingEntry level management positions -Department manager or assistant buyer/planner -Manage and have P&L responsibility on your first jobStarting pay average with great benefits - Some retailers pay graduate schoolNo two days are alikeBuying and planning for financially analytically orientedManagement for people-people48Types of Jobs in Retailing Most entry level jobs are in store management or buying, but there’s -accounting and finance -real estate -human resource management -supply chain management -advertising -public affairs -information systems -loss prevention -visual merchandising49