Chap 001

5th Edition
PPT 1-1
Consumer Behavior
Ignacio J. Vzquez E. 2007
Chapter 1
Introduction to the
World of Retailing
McGraw-Hill/Irwin
Levy/Weitz:
Retailing Management,
Behavior 5/e
PPT
1-2 Consumer
Copyright 2004 by The McGraw-Hill Companies, Inc. All rights
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 1-3
Consumer Behavior
Examples of Retailers
Retailers:
-Sears, Holiday Inn, McDonalds, Amazon.com, Jiffy
Lube, AMC Theaters, American Eagle Outfitter, FAO
Schwartz, Kroger
Firms that are retailers and wholesalers that

sell to other business as well as consumers:
-Office Depot, The Home Depot, United Airlines, Bank
of America, Sams Clubs
PPT 1-4
Consumer Behavior
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 1-5
Consumer Behavior
How Retailers Add Value

The value of the product and service increases
as the retailer performs functions.
Doll can be bought
on credit or put on
layaway
Doll is featured on
floor display
Doll is offered in
convenient
locations in
Doll is developed in quantities of one
several styles
Doll is developed at
manufacturer
PPT 1-6
Consumer Behavior
Manufacturers Perspective
The Four Ps of Marketing
Retailers
Retailersare
are part
part of
of the
the
distribution channel
channel
distribution
Product
Price
Distribution
Promotion
PPT 1-7
Consumer Behavior
Distribution Channel
PPT 1-8
Consumer Behavior
Retailers are a Business Like Manufacturers
Accounting
Operations
PPT 1-9
Consumer Behavior
Finance
MIS
Marketing
Human Resources
Decision Variables for Retailers
Customer Service
Store Design
and Display
Retail
Merchandise
Assortment
Strategy
Pricing
Location
Communication
Mix
PPT 1-10 Consumer Behavior
Economic Significance of Retailing
Over $2.5 trillion in annual U.S. sales

-greater than medical care, housing, recreation combine
Employs 17% of population

-about the same as manufacturing and growing
Management training opportunities

Entrepreneurial opportunities
Nature of Retail Industry is Changing
To Todays Retailer
Mom and Pop Store
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

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
Retail Environment Differs Across the Globe
US
Japan
Concentration
High
Medium
Store Size
Big
Small
Role of
Low
High
High
Low
Wholesaling
Efficiency
JC Penneys 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
Develop catalog, develop electronic retailing
Future (?)
Sears Strategic Evolution

Large number of merchandise categories -appliances, hardware, apparel
Malls evolved into places for buying soft goods, hard
goods sold at category killers
The Softer Side of Sears
Refocused on value -- Testing carts in stores
Acquired Lands End
Reviewed training program for new managers
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
Hot Topics Retail Mix
Customer Service
Store Design
And Display
Location
Merchandise
Retail Strategy
Communication
Assortment
Pricing
Mix

Location Strategy
Enclosed malls
Customer
Service
Store Display
And Design
Communication
Mix
Merchandise
Assortment
Pricing

Assortment Strategy
Customer
Service
Location
Store Design
and Display
Communication
Pricing
Mix
Many Different
Hot Band
T-shirts and
Accessories

Location
Customer
Service
Pricing Strategy
Merchandise
Assortment
Store Design
and Display
Communication
Mix
Modest with Sales

Customer
Service
Communication Mix
Store Design
And Display
Location
Merchandise
Assortment
Pricing
TV and
Magazine Ads
Store Design and Display
Customer
Service
Heavy Metal,
Gothic Look
Merchandise
Assortments
Communication
Mix
Location
Pricing
Customer Service
Modest
Location
Merchandise
Assortment
Store Design
and Display
Pricing
Communication
Mix
Macys Retail Mix
Customer
Service
Store Design
And Display
Retail Strategy
Communication
Mix
Location
Merchandise
Assortment
Pricing
Macys Retail Mix

Location Strategy
Enclosed Malls
Customer
Service
Store Display
And Design
Communication
Mix
Merchandise
Assortment
Pricing
Macys Retail Mix

Assortment Strategy
Customer
Service
Location
Many Items in
Apparel and
Soft Home
Store Design
and Display
Communication
Mix
Pricing
Macys Retail Mix

Location
Customer
Service
Pricing Strategy
Merchandise
Assortment
Store Design
and Display
Communication
Mix
Moderate with
Frequent Sales
Macys Retail Mix

Customer
Service
Communication Mix
Store Design
And Display
Location
Merchandise
Assortment
Pricing
TV, Newspaper Ads

and Special Events
Macys Retail Mix
Customer
Service
Ring with Displays
Merchandise
Assortments
Communication
Mix
Location
Pricing
Macys Retail Mix
Customer Service
Modest
Location
Merchandise
Assortment
Store Design
and Display
Pricing
Communication
Mix
Wal-Marts Retail Mix
Customer
Service
Store Design
And Display
Retail Strategy
Communication
Mix
Location
Merchandise
Assortment
Pricing

Location Strategy
Free-standing Stores
Customer
Service
Store Display
And Design
Communication
Mix
Merchandise
Assortment
Pricing

Assortment Strategy
Customer
Service
Location
Large Number
of Categories
Store Design
and Display
Communication
Mix
Pricing
Few Items
in Each Category

Location
Customer
Service
Pricing Strategy
Merchandise
Assortment
Store Design
and Display
Communication
Mix
Low, EDLP

Customer
Service
Communication Mix
Store Design
and Display
Location
Merchandise
Assortment
Pricing
TV and Newspaper
Insert Ads
Customer
Service
Basic, Special
Displays
for Products
Merchandise
Assortments
Communication
Mix
Location
Pricing
Customer Service
Limited
Location
Merchandise
Assortment
Store Design
and Display
Pricing
Communication
Mix
Career Opportunities in Retailing

Start Your Own Business
List of Retail Entrepreneurs on
Forbes 400 Richest Americans
Walton Family (Wal-Mart)
Fisher (The Gap)
Wexner (Limited)
Menard (Menards)
Marcus, Blank (The Home Depot)
Kellogg (Kohls)
Schulze (Best Buy)
Levine (Family Dollar)
Gold (99Cent Only)
Misconceptions About Careers in Retailing

Dont need college
Low pay
Long hours
Boring
Dead-end job
No benefits
Everyone is part-time
Unstable environment
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
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
Centro de Comercio Detallsita
www.gda.itesm.mx/ccd
ADMINISTRACIN DE MERCANCAS / PRECIOS: Aprenders el manejo de compras,

resurtidos e inventarios que realizan las empresas de comercio al detalle. Analizars
la tecnologa que est revolucionando el retail y estudiars la administracin y el
establecimiento de precios, as como el desarrollo y presentacin de lneas de
producto, dando especial atencin a las relaciones comprador-proveedor.
INTERNSHIP I Y II: Aplicars tus conocimientos dentro de una empresa detallista. en

el verano trabajars 7hrs. diarias por 5 semanas en una empresa de comercio al
detalle, en donde conocers las diferentes reas de la empresa y tendrs la
oportunidad de resolver algn problema o realizar un proyecto especfico.
ADMINISTRACIN DE LA TIENDA Y SERVICIO AL CLIENTE: Analizars los procesos

en el manejo y administracin de una tienda. Aprenders temas relacionados con
sistemas de informacin, recursos humanos, imagen y diseo de la tienda (visual
merchandising), servicio al cliente y CRM (Customer Relationship Management),
entre otros.
ESTRATEGIA DE COMERCIO DETALLISTA MULTICANAL: Conocers las estrategias

que siguen los principales detallistas y su implicacin en las ventas. Comprenders
la metodologa para la ubicacin de puntos de venta. Aplicars las estrategias de
publicidad y promocin que se utilizan en el comercio detallista. Adems,
aprenders la nueva tendencia en el retail de administracin por categoras.

Chap 001

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chap 001

Uploaded by

Copyright:

Available Formats

5th Edition

Ignacio J. Vzquez E. 2007

Ignacio J. Vzquez E. 2007

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights

Retailing a set of business activities that

Ignacio J. Vzquez E. 2007

Firms that are retailers and wholesalers that

Ignacio J. Vzquez E. 2007

How Retailers Add Value

Ignacio J. Vzquez E. 2007

How Retailers Add Value

Ignacio J. Vzquez E. 2007

Ignacio J. Vzquez E. 2007

Ignacio J. Vzquez E. 2007

Retailers are a Business Like Manufacturers

Ignacio J. Vzquez E. 2007

Decision Variables for Retailers

PPT 1-10 Consumer Behavior

Ignacio J. Vzquez E. 2007

Economic Significance of Retailing

Over $2.5 trillion in annual U.S. sales

Employs 17% of population

Management training opportunities

PPT 1-11 Consumer Behavior

Ignacio J. Vzquez E. 2007

Nature of Retail Industry is Changing

Mom and Pop Store

PPT 1-12 Consumer Behavior

Ignacio J. Vzquez E. 2007

Retailing is a High Tech Industry

- Using Internet to manage supply chains

- Analyze POS data to tailor assortments to stores

- Computer systems for merchandise planning

Ignacio J. Vzquez E. 2007

Source Merchandise From Around the World

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

Carrefour has Stores in 25 Countries

PPT 1-14 Consumer Behavior

Ignacio J. Vzquez E. 2007

Retail Environment Differs Across the Globe

Ignacio J. Vzquez E. 2007

JC Penneys Strategic Evolution

Ignacio J. Vzquez E. 2007

Sears Strategic Evolution

PPT 1-17 Consumer Behavior

Ignacio J. Vzquez E. 2007

Whole Foods Implementation

Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

PPT 1-21 Consumer Behavior

Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

PPT 1-22 Consumer Behavior

Modest with Sales

Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

PPT 1-23 Consumer Behavior

Ignacio J. Vzquez E. 2007

Hot Topics Retail Mix

Store Design and Display