Marketing Retail Management Notes

MKT 307 Wednesday, January 16, 2008

Retail can occur in more than just a store... (i.e., Doctor's Office, Hair Salon, etc.)

As long as there is a monetary transaction; can be tangible or IN-tangible

What is RETAILING?

RETAILING is 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 por personal or family use.

THE CHANNEL OF DISTRIBUTION

Manufacturing  Wholesaler  Retailer  Consumer

*In some cases, steps can be eliminated to save money & increase profit

Manufacturing, Wholesaling, and Retailing

Vertical Integration- firm performs more than one set of activities

Ex. Retailer invests in wholesaling or manufacturing

Backward Integration- retailer performs some distribution and manufacturing activities

Ex. JCPenny sells Arizona Jeans (Private Label)

Forward Integration- manufacturers undertake retailing activities

Ex. Ralph Lauren operates its own stores

Friday, January 18, 2008

*4 Functions of a Retailer*

1. Provides an assortment of products and services

2. Breaking Bulk Breaking down large shipments so products can be distributed accordingly

3. Holding Inventory to keep inventory ready for purchase; works hand-in-hand with "breaking bulk"

4. Providing services (lay-away, catalogs, cleanliness, etc.)

*These 4 functions create value for the retailers

Changes in the Retail Industry

Technology- self check-out, TV shopping, online shopping

Customer Service

Product Knowledge of sales associates

Store Hours

MKT 307 Retail Mgt Wednesday, January 23, 2008

List of retail entrepreneurs among Forbes top 400

Walton Family (Wal-Mart)

Fisher (The Gap)

Wexner (Limited)

Menard (Menard's

Marcus, Bank (Home Depot)

Kellogg (Kohl's)

Schulze (Best Buy)

Levine (Family Dollar)

You 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!!

General Tremds in Retailing

* New types of retailers

* Increased Concentration

* Globalization

* Growth in services retailer

* Growth in use of Multi-Channel

* Retail by traditional retailers

* Increase use of technology to reduce costs, increase value delivered

Types of Retailers

Food Retailers

Mom & Pop Stores

Convenience Stores

Supermarkets

Supercenters

General Merchandise Retailers

Drug Stores - Walgreen's, CVS, Rite Aid

Home Improvement Centers - largest and most successful category specialist i.e. Lowe's and Home Depot

Department Stores - Wide variety/deep assortment and Customer Service, soft and hard goods i.e. Macy's, Sears, JC Penny's

Specialty Stores - limited number of complementary merchandise, i.e. Victoria's Secret, Claire's, and DTLR

Full-Line Discount Stores - Rose's,

Category Specialist - Narrow, deep assortment of merchandise i.e. Best Buy, Bass Pro Shop. Category killer i.e. Toy's R Us

Off-Price Retailers - Brand names, designer label merchandise at lower prices i.e. TJ Max, Mershalls, and Burlington

Closeout retailers i.e. Big Lots, outlets, factory stores

Extreme Value - full-line stores with very low prices i.e. Dollar Stores, Dollar General

MKT 307 Wednesday, January 30, 2008

Types of nonstore Retailers

Customer  Print, Mail, Telephone Catalog/ Direct Mail Retailer

CustomerSalespeople Face-to-FaceDirect selling retailer

CustomerTelevision, telephonTV home shopping retailer

Customerinteractive electronic system (internet)Electronic retailer

Why are retailers using multiple channels to interact