Chapter 1

• Define Retailing
– Various Perspectives
– Impact
– Special Characteristics
• Concept of Strategic Planning
• Relate Marketing Concept to Retailing
– Total Retail Experience
– Customer Service
– Relationship Retailing
The business activities involved in selling
goods and services to consumers for their
personal, or household use. It includes
every sale of goods and services to the
final consumer.
• Opportunities
– Start New Business
– Franchising
– Globalization
• Challenges
– Bored Consumers
– Time Poor Society
– Too Many Stores
– High Consumer Expectations
• Tangible Goods
• Services
• Does NOT Always Include
– Store
– Retailer
• Traditional Retailers
– Sales $3 Trillion in U.S
• Non-Traditional Retailers
– Sales $250 Billion
• Other Services
– Several Hundred Billion
• Major Source of Jobs
 Final
Manufacturer Wholesaler Retailer Consumer
• Divergent Viewpoints
• Types of Distribution
– Exclusive
– Intensive
– Selective
• Competition in the Marketplace
• Product Image
• Slotting Allowances
• Distribution Rights
• Management
• Operations
• Merchandising
• Providing Assortment
• Breaking Bulk
• Providing Service
• Holding Inventory
Manufacturer
Brand A Brand A
Wholesaler Customers
Manufacturer
Brand B Brand B
Customers

Manufacturer
Brand C Brand C
Customers
Wholesaler Retailer
Manufacturer
Brand D
Brand D
Customers

Manufacturer Brand E
Brand E Customers
Wholesaler

Manufacturer Brand F
Brand F Customers
Small Average Sales Impulse Purchases

Retailer’s
Strategy

Popularity of Stores
• Define Business Type
• Set Objectives
– Long-Term
– Short-Term
• Determine Customer Market
• Devise Overall, Long-Run Plan
• Implement Integrated Strategy
• Evaluate Performance
Customer Orientation

Coordinated Effort

Retailing Retail
Concept Strategy
Value-Driven

Goal Orientation
Includes all the elements in a retail
offering that encourage or inhibit
consumers during their contact with a
retailer
• Intangible
• Perishable
• Inseparable
• Inconsistent
• Satisfaction Based on:
– Expectation
– Past Experience
– Perceptions
• Total Retail Experience
• Monitor Customer
Satisfaction
• Stay in Touch with Customers
• Do We Trust Our Customers?
• Do We Stand Behind What We Sell?
• Do We Stress Promise-Keeping in Our Firm?
• Do We Value Customer Time?
• Do We Communicate with Customers Respectfully?
• Do We Respect ALL Customers?
• Do We Thank Customers for Their Business?
• Do We Respect Employees?
• The Definition of Retailing
– Various Perspectives
– Impact
– Special Characteristics
• Concept of Strategic Planning
• How the Marketing Concept Relates
to Retailing
– Total Retail Experience
– Customer Service
– Relationship Retailing
 Questions?

Questions?