introduction to the world of retailing by duane martenson
TRANSCRIPT
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 AssortmentBuy other products at the same time
■ Break BulkBuy it in quantities customers want
■ Hold InventoryBuy it at a convenient place when you want it
■ Offer ServicesSee 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 Retailer
MIS
Real Estate
Operations
Finance
Promotion/Advertising
Human ResourcesLoss 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 UsSmall towns -- big townsWide Varity shallow selection – every toy madeLow price — low priceSelf 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 StrategyChapter 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
MerchandiseAssortment
PricingCommunication Mix
Store DesignAnd Display
1-13
Wal-Mart’s Retail Mix
Free-standing Stores
Customer Service
MerchandiseAssortment
PricingCommunication
Mix
Store DisplayAnd Design
Location Strategy
1-14
Wal-Mart’s Retail Mix
Location
PricingCommunication
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 NewspaperInsert 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
PricingCommunication
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 communication on progress
3-5 days late and the group kept you updated on their Progress
1-2 days late with no communication 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 requirements
Did not meet requirements
Met a few requirements
Met some requirements
Met most requirements
Met all requirements
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, or Adobe 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!