Chapter 1

Introduction to the
World of Retailing

McGraw-Hill/Irwin
Levy/Weitz:
PPT Retailing Management,
1-1 Consumer 5/e
Behavior Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Ignacio J. Vzquez E. 2007
 What 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.

PPT 1-2 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, layaway
PPT 1-3 Consumer Behavior Ignacio J. Vzquez E. 2007
 Manufacturers Perspective

The Four Ps of Marketing

Retailers
Retailersare
are part
part of
of the
the
distribution channel
distribution channel
Product

Distribution Price

Promotion

PPT 1-4 Consumer Behavior Ignacio J. Vzquez E. 2007

 Distribution Channel
PPT 1-4
Distribution Channel

PPT 1-5 Consumer Behavior Ignacio J. Vzquez E. 2007

 Retailers are a Business Like Manufacturers

Accounting Finance Marketing

Operations MIS Human Resources

PPT 1-6 Consumer Behavior Ignacio J. Vzquez E. 2007

 Decision Variables for Retailers

Customer Service

Store Design Merchandise

and Display Assortment
Retail
Strategy
Pricing Location

Communication
Mix

PPT 1-7 Consumer Behavior Ignacio J. Vzquez E. 2007

 Retailing is a High Tech Industry

- Selling Merchandise over the Internet

- Using Internet to manage supply chains

- Analyze POS data to tailor assortments to stores

- Computer systems for merchandise planning

PPT 1-8 Consumer Behavior Ignacio J. Vzquez E. 2007

 Globalization of Retailing

Source Merchandise From Around the World

Wal-Mart Operates in U.S., China, Mexico, UK, Germany

Carrefour has Stores in 25 Countries

PPT 1-9 Consumer Behavior Ignacio J. Vzquez E. 2007

 Hot Topics Retail Mix

Customer Service Location

Store Design Merchandise

Retail Strategy Assortment
And Display

Communication Pricing
Mix
PPT 1-10 Consumer Behavior Ignacio J. Vzquez E. 2007
 Wal-Marts Retail Mix

Customer Location
Service

Store Design Merchandise

And Display Retail Strategy Assortment

Communication Pricing
Mix

PPT 1-11 Consumer Behavior Ignacio J. Vzquez E. 2007

 Wal-Marts Retail Mix

Location Strategy

Free-standing Stores

Customer
Service

Store Display Merchandise

And Design Assortment

Communication
Mix Pricing

PPT 1-12 Consumer Behavior Ignacio J. Vzquez E. 2007

 Wal-Marts Retail Mix

Assortment Strategy

Customer
Service Location

Large Number
Store Design
and Display
of Categories
Few Items
Communication
Mix Pricing
in Each Category

PPT 1-13 Consumer Behavior Ignacio J. Vzquez E. 2007

 Wal-Marts Retail Mix

Location
Pricing Strategy
Customer
Merchandise
Service
Assortment

Store Design
and Display

Communication
Mix Low, EDLP

PPT 1-14 Consumer Behavior Ignacio J. Vzquez E. 2007

 Wal-Marts Retail Mix

Customer
Service Location

Communication Mix
Store Design Merchandise
and Display Assortment

Pricing

TV and Newspaper
Insert Ads

PPT 1-15 Consumer Behavior Ignacio J. Vzquez E. 2007

 Wal-Marts Retail Mix

Store Design and Display

Customer
Service Location

Basic, Special
Merchandise
Displays Assortments
for Products
Communication
Mix Pricing

PPT 1-16 Consumer Behavior Ignacio J. Vzquez E. 2007

 Wal-Marts Retail Mix

Customer Service

Limited

Location

Merchandise
Assortment

Store Design
and Display Pricing

Communication
Mix

PPT 1-17 Consumer Behavior Ignacio J. Vzquez E. 2007

 Why You Should Consider Retailing

Entry level management positions

-Department manager or assistant buyer/planner
-Manage and have P&L responsibility on your first job
Starting pay average with great benefits
- Some retailers pay graduate school
No two days are alike
Buying for financially oriented people
Management for people people

PPT 1-18 Consumer Behavior 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
--human resource management
--supply chain management
--advertising
--public affairs
PPT 1-19 Consumer Behavior Ignacio J. Vzquez E. 2007