INTRODUCTION TO THE WORLD OF
RETAILING
By Duane Martenson
What we are going to cover
What Retailing is
The importance of retailing
Career opportunities in retail
What is retailing to you?
Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use
The Four P’s of Marketing
Distribution
Product
Price
Promotion
How do Retailers add value?
■ Provide Assortment
Buy other products at the same time
■ Break Bulk
Buy it in quantities customers want
■ Hold Inventory
Buy it at a convenient place when you want it
■ Offer Services
See it before you buy; get credit; layaway
What do Retailers do for Corporate Social Responsibility
McDonalds Houses
Starbuck fair trade coffee
Target community Give Back
Retail has changed! So has the career opportunities!
Mom and Pop Store
To
Today’
s
Retail er
MIS
Real Estate
Operations
Finance
Promotion/Advertising Human Resources
Loss Prevention
Store Design
Misconceptions
■ College not needed
■ Low pay
■ Long hours
■ Boring
■ Dead-end job
■ No benefits
■ Everyone is part-time
■ Unstable environment
■ No opportunity for women and minorities
The Retail Management Decision Process
The World of Retailing (chapters 1-4)
Environmental Factors
Macro– technology, social, ethical, political
Micro– competition and customers
Competition –
Intratype competition– between same type retialer (supermarket vs supermarket)
Greater Variety of products makes for scrambled merchandising thus increased Intertype competition.
(examples of scrambled merchandising??)
Customers – Consumer Behavior
The Retail Management Decision Process
Retailing Strategy (chapters 5-11)
How the firm plans to focus its resources to accomplish objectives
Targets
Merchandise
Long term competitive advantage
Wallmart vs Toys R Us
Small towns -- big towns
Wide Varity shallow selection – every toy made Low price — low price
Self service – Self service
The Retail Management Decision Process
Retailing Strategy (chapters 5-11) Cont.
Strategic Decision Area
Marketing strategy
Financial strategy
Location strategy
Organizational structure
Human Resource
Information systems
Supply Chain Strategies
CRM
Implementing the Retail Strategy Chapter 12-19
Retail Mix – combination of factors used to satisfy customer needs and influence their purchase decision
Types of merchandise and service
Pricing
Advertising and promotion
Store design and merchandise display
Level of customer service
Store location
1-12
Wal-Mart’s Retail Mix
Retail Strategy
Customer
Service Location
Merchandise Assortment
Pricing Communication
Mix Store Design
And Display
1-13
Wal-Mart’s Retail Mix
Free-standing Stores
Customer Service
Merchandise Assortment
Pricing Communication
Mix Store Display And Design
Location Strategy
1-14
Wal-Mart’s Retail Mix
Location
Pricing Communication
Mix Store Design
and Display Customer
Service
Large Number of Categories Few Items
in Each Category Assortment Strategy
1-15
Wal-Mart’s Retail Mix
Location
Communication Mix
Store Design and Display Customer
Service Merchandise Assortment
Low, EDLP
Pricing Strategy
1-16
Wal-Mart’s Retail Mix
Communication Mix
TV and Newspaper Insert Ads
Location
Pricing Store Design
and Display Customer
Service
Merchandise Assortment
1-17
Wal-Mart’s Retail Mix
Store Design and Display
Basic, Special Displays for Products
Customer
Service Location
Merchandise Assortments
Pricing Communication
Mix
1-18
Wal-Mart’s Retail Mix
Customer Service
Limited
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display
Checklist for Making Ethical
Decisions
Rubric For Assignments
Points--- 0 10 15 20 25
Assignment posted to Wiki by Due Date
3 days late with no communicatio n on progress
3-5 days late and the group kept you updated on their Progress
1-2 days late with no communicatio n as to the groups progress
1-2 days late and the group kept you updated on their progress
On Time
Points--- 0 20 30 40 50
Assignment met your requirement s
Did not meet requirements
Met a few requirement s
Met some requirements
Met most requirement s
Met all requirement s
Points--- 0 20 30 40 50
Quality of Assignment
Did not complete
Low quality, didn’t adequately address topic
Went into great detail but did not apply all of the concepts correctly
Brief but accurately applied the concepts of the topic
Went into great detail and
accurately applied the concepts of the topic
Assignment 1
Interview somebody that has a career in the retail field.
Ask questions in the following areas
What is an average day like for your position?
What career opportunities in retail do they see for someone with a degree in business?
What are the benefits and draw back to working in retail?
What does their business do for social responsibility
Any ethical situation you have encountered.
Post the interview as a video or podcast to introduction to retail wiki page.
(YouTube, Blaberize…)
Assignment 2
Use Screencasting or Digital Storytelling that illustrates the role retailers play in the
distribution chain. (Prezi or Photopeach would work well…
others?)
Terms to use:
Backward/Forward Integration or Vertical Integration
Breaking Bulk, Holding Inventory, Providing Assortment and Services
Supply Chain
Anything else you see fit…..
Post to Introduction to Retail Wiki page.
Assignment 3
Retail mix
Go to two local retailers that are intertype Competitors and compare their retail mix.
Examples (Walmart and Kmart) (Safeway and FTC) (Deer Mt.
and Terry Peak)
Customer Service
Store Design and display
Communication mix
Location
Merchandise Assortment
Price
Use a digital story telling method or multimedia to illustrate the comparisons to document that is
appropriate. (Blabberize, Comic Life, Prezi….) Post to wiki!
