Copyright 2012 by The McGraw-Hill Companies, Inc.

All rights
4th
Edition

reserved.
MANAGEMEN
RETAILING

Cases
andCases

Swapna Pradhan
Textand
T
Text
 Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
reserved.
AN OVERVIEW
OF R ETAIL
0
1
LEARNING OBJECTIVES

The meaning of retail

The functions of a retailer
The significance of retail as an industry

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

The role of the retailer in todays global
economy
Key issues facing global retailers
Retail as a career

reserved.
 WHAT IS RETAIL?
Retail is derived from the French word retailer,
which means to break bulk.
Retailing may be understood as the final step in the
distribution of merchandise for consumption by the

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

end consumers.
Any firm that sells products to the final consumer is
performing the function of retailing.
It consists of all activities involved in the marketing
of goods and services directly to the consumers for
their personal, family or household use.

reserved.
 WHAT IS RETAIL?

Retailing is said to encompass the

business activities involved in selling

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

goods and services to consumers for
their personal, family or household
use.
- Berman and Evans

reserved.
 WHAT IS RETAIL?

Retailing includes all the activities involved

in selling goods or services to the final
consumers for personal, non-business use. A
retailer or retail store is any business

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

enterprise whose sale volume comes
primarily from retailing. Any organisation
selling to final consumers whether it is a
manufacturer, wholesaler or retailer is
doing retailing. It does not matter how the
goods or services are sold (by person, mail,
telephone vending machine or internet or

reserved.
where they are sold in a store, on the
THE MARKETING RETAIL
EQUATION
Manufacturer Manufacturer Manufacturer
Manufacturer Manufacturer Manufacturer

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

Wholesaler
Wholesaler

Retailer
Retailer
Feedback

Retailer
Retailer

Consumer Consumer Consumer

Consumer Consumer Consumer

reserved.
THE ROLE OF THE RETAILER
Link Between
Producer and
Consumer

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

The
Retailer

The Retailer The Retailer

as a Channel as an Image
Member Creator

reserved.
THE RETAILER AS A LINK BETWEEN THE
PRODUCER AND THE CONSUMER
Form utility- by offering assortment of
finished goods and services in a form that
customers want

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

Time utility- by keeping the store open
when the consumers prefer to shop
Place utility- by being available at a
convenient location
Ownership utility- by selling the product
Serves the manufacturer- by
distributing the goods to the end consumer

reserved.
 THE RETAILER AS A
CHANNEL MEMBER

The retailer serves the manufacturer

by performing the function of
distributing the goods to the end

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

consumer, and thus forming a channel
of information to the consumer. He is
the final link in the distribution chain
and very vital too. For several product
categories where brand loyalty is not
very strong or for unbranded products,
the retailers recommendation is vital.

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 THE RETAILER AS AN
IMAGE CREATOR

It is important for the retailer and for the

manufacturer first determine what the
store stands for and accordingly work

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

around the merchandise and the
marketing aspects.
There are two specific dimensions to retail
marketing, first how to attract customers
into the retail environs (shop, restaurant,
supermarket or the virtual internet store)
and second how to persuade those

reserved.
 Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
reserved.
THE TRANSITION OF POWER
 Copyright 2012 by The McGraw-Hill Companies, Inc. All rights
reserved.
THE RISE OF THE RETAILER
 REASONS FOR
THE RISE OF THE RETAILER

Proximity to the Customer

The Rise of Consumerism

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

The Introduction of the Private
Label
Technology
Globalisation

Retailers are no longer dependent on the

reserved.
manufacturers to sell what is available and have
 CHALLENGES FACED BY
RETAILERS WORLDWIDE

The emergence of new markets

The empowered consumer

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

Technology-enabled efficiencies
The rise of the e-age

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 RETAIL AS A CAREER
Buying and Merchandising
Marketing
Store Operations

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights

Sales
Finance
Human Resources
Technology and e-commerce
Visual Merchandising
Supply Chain Management and

reserved.