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15493449 introduction-to-retailing

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15493449 introduction-to-retailing

  1. 1. McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.Levy/Weitz: Retailing Management, 4/e
  2. 2. Chapter 1 Introduction to the World of RetailingIrwin/McGraw-HillLevy/Weitz: Retailing Management, 4/e Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
  3. 3. PPT 1-1 The Dynamic Retailing Environment • Information and Communication Technology ­ POS, EDI, ECR, QR • Globalization ­ McDonalds Around the World, Walmart in China, Mexico, Brazil • Electronic Retailing ­ Amazon.com, Macy.com, eToys, eBay, JCPenney.com • Entertainment in Retailing ­ Niketown, Bass Pro Shop, Mall of America McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  4. 4. PPT 1-2 Definition of 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 for the personal or family use. McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  5. 5. PPT 1-3 Examples of Retailers • Retailers – Sears, Holiday Inn, McDonalds, Amazon.com, Jiffy Lube, The Gap • Firms that are retailers and wholesalers ­­sell to other businesses as well as consumers – Office Depot, Home Depot, United Airlines, Bank of America McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  6. 6. PPT 1-4 Distribution Channel McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  7. 7. PPT 1-5 Different Perspectives of Retailers Manufacturer’s Retailer’s Perspective Perspective One of the Controllable A Business with all the Business Functions ­­ Elements in the Firm’s Production Marketing Program ­­ Buying One of the Four P’s Merchandise, Private Label Marketing HR Accounting and Finance McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  8. 8. PPT 1-6 Value Added by Retailers • Providing Assortment • Breaking Bulk • Holding Inventory • Offering Services McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  9. 9. PPT 1-7 Sale $1.00 $1.20 $2.00 Price $.85 $.15 $.70 Manufacturer Distributor Retailer Customer McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  10. 10. PPT 1-8 Global Comparison US Japan Concentration High Medium Store Size Big Small Role of Low High Wholesaling Efficiency High Low McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  11. 11. PPT 1-9 Economic Significance of Retailing • Over $2.5 Trillion in Annual U.S. Sales ­ Greater than medical care, housing, recreation combined • Employs 18% of population ­ About the same as manufacturing and growing • Management Training Opportunities • Entrepreneurial Opportunities McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  12. 12. PPT 1-10 Projected Job Gains Source: U.S. Department of Commerce McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  13. 13. PPT 1-11 Retail Management Decision Process The World of Retailing - Section 1 1. Introduction to the World of Retailing 2. Store­Based Retailing 3. Nonstore Retailing ­ Electronic Retailing and Catalogs 4. The Retail Customer 5. Customer Buying Behavior Retailing Strategy - Section 2 6. Retail Market Strategy 7. Financial Strategy 8. Retail Locations 9. Site Selection 10. Organization Structure and Human Resource Mgmt. 11. Integrated Retail Logistics and Information Systems Merchandise Mgmt. -3 Store Management -4 12. Planning Merchandise 17. Managing the Store Assortments 18. Store Layout, Design, 13. Buying Systems and Visual Merchandising 14. Buying Merchandise 19. Customer Service 15. Pricing 16. Retail Promotion MixIrwin/McGraw-HillLevy/Weitz: Retailing Management, 4/e Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
  14. 14. PPT 1-12 JCPenney’s Strategic Evolution • Main Street private label soft goods retailer • Changes in environment ­­ increased disposable income, growth of suburbs, interstate highway program • Emulate Sears in enclosed suburban malls • Focus on soft goods ­­ drop automotive, sporting goods, hardware • Start catalog, electronic retailing • Future (?) McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  15. 15. PPT 1-13 Sears’ Strategic Evolution • Large number of merchandise categories ­­ appliances, hardware, apparel • Malls evolve into places for buying soft goods, hard goods sold at category killers • The Softer Side of Sears • Refocusing on value ­­ Testing carts in stores McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  16. 16. PPT 1-14 Whole Foods Implementation • Strategy ­ Organic and natural foods supermarket chain – Assortment beyond organic/natural foods – Private labels ­ Whole Food™, 360 Day Value™ – Love, trust, and employee empowerment – Equality in compensation McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  17. 17. PPT 1-15 Misconceptions about Careers in Retailing • Why go to college to be a sales clerk? • Low pay • Long hours • Boring McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  18. 18. PPT 1-16 Why Should You Consider Retailing? • Entry level management positions – Department manager or assistant buyer – Manage people and have P&L responsibility on your first job • Starting pay average, but compensation excellent if you are successful • Something new and different each day • Buying for numbers people, store management for people people McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e
  19. 19. PPT 1-17 Types of Jobs • Most entry level jobs in store management and buying • Retailers also have staff specialists – Accounting and finance – Real estate – Human resource management – Computer information systems – Supply chain management – Advertising and public relations McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Levy/Weitz: Retailing Management, 4/e

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