P2204: RETAIL MANAGEMENT

——MODULE 1——
Chapter 1
SY:2020-2021

Palawan State University Prepared by: Khristina D.

Taytay Campus Lafuente
 Intended Learning Outcome
To define retailing, consider it from various perspectives,
1
demonstrate its impact, and note its special characteristics

To introduce the concept of strategic planning and

2 Ad ityour title here
apply

To show why the retailing concept is the foundation of a successful

3 business, with an emphasis on the total retail
experience,customerservice, and relationship retailing
 Overview

This lesson will describes retailing, shows why it

should be studied, and examines its special
characteristics and In this chapter, we look at the
Strategic Planning in Retailing & Types of Retailers

framework of retailing, the value of developing

and applying a sound retail strategy.
 Mind Exercise

It's RIDDLE 1. What's the best day for monkey

!!!!
1. Why do you think the teacher
Business?
wear sunglasses when she comes to
the class?

Because the students are BRIGHT

the first day of APE-ril

Because the students are BRIGHT
Had fun with your Riddles?,
Great job! I think you are ready for our topic.
Now, can you try to answer the following
questions?
Topic Engagement

Agree or Disagree?
1. Does wholesaling and retailing
differs from each other?
2. Does wholesaling means buying 1
box of a product from a convinience
store?
3. Does retailing needs a physical
store?
4. Does reatiling can be useful to
business management profit?
5. Does retailing exsist in the business
world?
Did you guess what topic we will discuss?

That's correct! So let us start by defining,

discussing the framework and
importance,functions, special characteristics of
our topic.

Backle Up!Let us start the engine...

 .

An Introduction to Retailing .
.

Retailing encompasses the business activities involved in selling goods and services to
consumers for their personal, family, or household use. It includes every sale to the final
consumer—ranging from cars to apparel to meals at restaurants to movie tickets. Retailing
is the last stage in the distribution process from supplier to consumer.
Today, retailing is at a complex crossroad. On the one hand, retail sales are at their highest
point in history (despite a dip during the 2008–2010 “Great Recession”). Walmart is the
leading company in the world in terms of sales, but Amazon.com, predominately an online
retailer with few physical stores as of this writing has an annual growth rate of 25 percent
compared to 1 percent for Walmart.New technologies are improving retail productivity.
There are many opportunities to start a new retail business—or work for an existing one—
and to become a franchisee. Global retailing possibilities abound, especially for pure-
online retailers that can replicate their business models globally without the capital costs
of store-based retailing.
please see attched PDF File of in our Googleclassroom for reference
 Framework of Retailing
THE FRAMEWORK OF RETAILING
To appreciate the role of retailing and the range of retailing activities, let's view it from three
perspectives:
1. Suppose we manage a manufacturing firm that makes cosmetics. How should we sell these
items? We could distribute via big chains such as Sephora or small neighborhood stores,
have our own sales force visit people in their homes as Mary Kay does, or set up our own
stores (if we have the ability and resources to do so). We could sponsor TV infomercials or
magazine ads, complete with a toll-free phone number.
2. Suppose we have an idea for a new way to teach first-graders how to use computer software
for spelling and vocabulary. How should we implement this idea? We could lease a store in
a strip shopping center and run ads in a local paper, rent space in a local YMCA and rely on
teacher referrals, or do mailings to parents and visit children in their homes. In each case,
the service is offered “live.” But there is another option: We could use an animated Web site
to teach children online.
3. Suppose that we, as consumers, want to buy apparel. What choices do we have? We could
go to a department store or an apparel store. We could shop with a full-service retailer or a
discount store. We could go to a shopping center or order from a catalog. We could patronize
retailers that carry a wide range of clothing (from outerwear to jeans to suits) or firms that
specialize in one clothing category (such as leather coats). We could surf the Web and visit
retailers around the globe. We could also look at Facebook and see what other consumers are
saying about various retailers.
please see attched PDF File of in our Googleclassroom for reference
There is a tendency to think of retailing as primarily involving the sale of
tangible (physical) goods. However, retailing also includes the sale of services
and digital goods. And this is a big part of retailing! A service may be the
shopper's primary purchase (such as a haircut) or it may be part of the
shopper's purchase of a good (such as furniture delivery). Sales in many
physical goods—product categories such as books, movies, and music—are
now dominated by their digital applications in the format of downloads.
Obviously, retailing does not have to involve a store. Mail and phone orders,
direct selling to consumers in their homes and offices, Web
transactions,kiosks, and vending machine sales all fall within the scope of
retailing. In fact, retailing does not even have to include a “retailer.”
Manufacturers, importers, nonprofit firms, wholesalers, and individual artisans
on online platforms, such as Etsy.com, act as retailers when they sell to final
consumers.

please see attched PDF File of in our Googleclassroom for reference

I hope you're still there..
Let’s now examine various
reasons for studying retailing
and its special characteristics.
 .

Reasons for Studying Retailing

.
.

.
.

Retailing is an important field to study because of its impact on the economy, its functions
in distribution, and its relationship with firms selling goods and services to retailers for their
resale or use.
 Retail Functions in Distribution

Retailing is the last stage in a channel of distribution—all the businesses and people
involved in the physical movement and transfer of ownership of goods and services from
producer to consumer. A typical distribution channel is shown in Figure 1-4. Retailers often
act as the contact between manufacturers, wholesalers, and the consumer. Many
manufacturers would like to make one basic type of item and sell their entire inventory to as
few buyers as possible, but consumers usually want to choose from a variety of goods and
services and purchase a limited quantity.

please see attched PDF File of in our Googleclassroom for reference

 Retail Functions in Distribution
Retailers collect an assortment from various sources, buy in large quantity, and sell in small amounts. This is
the sorting process. See Figure 1-5.

please see attched PDF File of in our Googleclassroom for reference

Another job for retailers is communicating both with customers and
with manufacturers and
wholesalers. Shoppers learn about the availability and characteristics of
goods and services, store hours, sales, and so on from retailer ads,
salespeople, and displays. Manufacturers and wholesalers are informed
by their retailers with regard to sales forecasts, delivery delays,
customer complaints, defective items, inventory turnover, and more.
Many goods and services have been modified due to retailer feedback.
For small suppliers, retailers can provide assistance by transporting,
storing, marking, advertising, and pre-paying for products. Small
retailers may need the same type of help from their suppliers. The tasks
performed by retailers affect the percentage of each sales dollar they
need to cover costs and profits.
Are you still up?
Well, we are almost at the end
of our topic.
Just relax first your eyes,shake
your hands, put down your
gadgets for 5 seconds and BRB!
Be right back also.
Almost there!
 THE RELATIONSHIPS AMONG RETAILERS AND THEIR SUPPLIERS

Relationships among retailers and suppliers can be complex. Because retailers are part of a
distribution channel, manufacturers and wholesalers must be concerned about the caliber
of displays, customer service, store hours, and retailers’ reliability as business partners.
Retailers are also major customers of goods and services for resale, store fixtures,
computers, management consulting, and insurance.These are some issues over which
retailers and their suppliers have different priorities: control over the distribution channel,
profit allocation, the number of competing retailers handling suppliers’ products, product
displays, promotion support, payment terms, and operating flexibility. Due to the growth of
large chains, retailers have more power than ever. Unless suppliers know retailer needs,
they cannot have good rapport with them; so long as retailers have a choice of suppliers,
they will choose those offering more.
Channel relations tend to be smoothest with exclusive distribution, whereby suppliers make
agreements with one or a few retailers that designate the latter as the only ones in specified geographic areas
to carry certain brands or products. This stimulates both parties to work together to maintain an image,
assign shelf space, allot profits and costs, and advertise. It also usually requires that retailers limit their brand
selection in the specified product lines; they might have to decline to handle other suppliers’ brands. From
the manufacturers’ perspective, exclusive distribution may limit their long-run total sales.

Channel relations tend to be most volatile with intensive distribution, whereby suppliers sell through as many
retailers as possible. This often maximizes suppliers’ sales and lets retailers offer many brands and product
versions. Competition among retailers selling the same items is high; retailers may use tactics not beneficial
to individual suppliers, because they are more concerned about their own results. Retailers may assign little
space to specific brands, set very high prices
on them, and not advertise them.

With selective distribution, suppliers sell through a moderate number of retailers. This com_x0002_bines
aspects of exclusive and intensive distribution. Suppliers have higher sales than in exclusive distribution, and
retailers carry some competing brands. It encourages suppliers to provide some marketing support and
retailers to give adequate shelf space. 
 Chapter Summary
In this and every chapter, the summary is related to the
objectives stated at the beginning of the chapter.
1. To define retailing, consider it from various perspectives,
demonstrate its impact, and note its special characteristics.
Retailing comprises the business activities involved in selling goods
and services to consumers for personal, family, or household use. It
is the last stage in the distribution process. Today, retailing is at a
complex crossroad, with many challenges ahead.
• Retailing may be viewed from multiple perspectives.
It includes tangible and intangible items, does not have
to involve a store, and can be done by manufacturers
and others—as well as retailers.
• Retailing encompasses all of the businesses and people
involved in physically moving and transferring ownership of
goods and services from producer to consumer. In a distribution •
channel, retailers perform valuable functions as the contact for
manufacturers, wholesalers, and final consumers. They collect
assortments from various suppliers and offer them to
customers.
• Retailers also communicate with both customers and other
channel members. They may ship, store, mark, advertise, and
pre-pay for items. In addition, they complete transactions with
customers and often provide customer services. They may also
offer multiple formats (multichannel retailing) to facilitate
shopping.Retailers and their suppliers have complex
relationships because retailers serve in two capacities. They are
part of a distribution channel aimed at the final consumer, and
they are major customers for suppliers. Channel relations are
smoothest with exclusive distribution; they are most volatile
with intensive distribution. Selective distribution is a way to
balance sales goals and channel cooperation.
Retailing has several special characteristics. The
aver_x0002_age sales transaction is small, consumers make
many unplanned purchases, and most customers visit a store
location.
 The total retail experience consists of all elements in a
Chapter Summary retail offering that encourage or inhibit consumers during
their contact with a retailer. Some elements are controllable by the
retailer; others are not. Customer service
In this and every chapter, the summary is related to the includes identifiable, but sometimes intangible, activities undertaken
objectives stated at the beginning of the chapter. by a retailer in association with the basic
goods and services sold. It has an effect on the total retail
experience. In relationship retailing, a firm seeks long term bonds
2. To introduce the concept of strategic planning and apply it. A with customers rather than acting as if each
retail strategy is the overall plan guiding the sales transaction is a totally new encounter with them.
firm. It has six basic steps: defining the business,
settingobjectives, defining the customer market, developing an
overall plan,enacting an integrated strategy, and evaluating
performance and making modifications. For example, Home
Depot’s strategy has been particularly well designed and
enacted, even though it has been
affected by the tough economy in recent years. NOTE: The content of this handout is not mine. I do not have the
3. To show why the retailing concept is the foundation of a intention of claiming it or gain credits for it. All came from the
successful business, with an emphasis on the total retail reference/s cited above. The content is used only for the purpose of
experience, customer service, and relationship retailing. educating students with the necessary knowledge and skills they
The retailing concept should be understood and used by need to acquire for this subject.
all retailers. It requires a firm to have a customer orientation,
use a coordinated effort, and be value driven and goal
oriented. Despite its straightforward nature, many firms do
not adhere to one or more elements of the retailing concept.
Great job guys! We're almost done, just one
last part of this module then we can move on
to our second module.

By that...let's check our understanding towards

our topic for our evaluation.

NOTE: The content of this handout is not mine. I do not have the
intention of claiming it or gain credits for it. All came from the
reference/s cited above. The content is used only for the purpose of
educating students with the necessary knowledge and skills they
need to acquire for this subject.
 ASSESSMENT
1. Which from the following statement is true? 6. A distribution suppliers sell through a moderate number of retailers. This
a.Retailing encompasses the business activities involved in selling goods only combines aspects of exclusive and intensive distribution.
b. Retailing is the last stage in the distribution process from supplier to consu a. exclusive distribution b. intensive distribution
c. intensive distribution d. all of the above
mer.
7-10. Identify the following Impact on the economy of reasons for studying
c. Retailing encompasses the business activities involved in selling goods and retailing
services to consumers for their personal purpose only a. massive employment
d. Retailing is the first stage in the distribution process from consumer. b. lower tax collections
2. Identify the flow of the Typical channel of Distribution c. exposure to national manufacturing practices
a. from consumer to retailer b. from retailer to consumer d. exposure on transport internationally
c. from manufacturer to final consumer d. from wholesale to final consu e.higher productivity
mer f. keeping high rate for product prices
3. Does a retailer buy a large quantity of product and sell it in small amounts? g. keeping high rate for product prices
h. keeping low rate for inflation
a. Yes b. No c. Maybe d. No answer
4. A distribution whereby suppliers make agreements with one or a few retail 11. If the Mark Kay products used Home visitation for retailing strategies, what
ers that designate the latter as the only ones in specified geographic areas to could be the possible retailing strategy for consumers to buy apparel?
carry certain brands or products. a. We could go to a shopping center or order from a catalog
a. exclusive distribution b. intensive distribution b. We couldn't surf the Web and visit retailers around the globe
c. intensive distribution d. all of the above c. We could also look at Facebook but cannot see what other consumers are
5. A distribution whereby suppliers sell through as many retailers as possible. saying about various retailers
This often maximizes suppliers’ sales and lets retailers offer many brands and d. All of the above
product versions.
12-15. Retailing as primarily involving the sale of tangible (physical) goods like
a. exclusive distribution b. intensive distribution
a 1 sachet of shampoo, what could be an example for retailing that includes
c. intensive distribution d. all of the above services and digital goods? Click the following checkboxes for possible answers.
a. Cylinder glass b. Ebook
c. Diamonds in Mobile Legend d. Avast
e. Advertisement f. Catalog
 COURSE OUTCOME ACTIVITY
1. Make a table that consists of list of products you wanted to sell, related to that, what
particular retail strategy will you use for your product to be sold.
2. In line with table no. 1, identify your target market and make remarks as to what are the
reasons why that is your target market.

Products to be Retail Strategy Target Market

RUBRIC
Sell Content 10 pts
the weight of your information
and insights about the work

Relation 10 pts
relationship of your product from
all of the needed infos in the question

Reality 10 pts
This is for specific examples and
view of your work

TOTAL 30 pts
Agree or Disagree?
1. Does wholesaling and retailing differs from each other?
AGREE
2. Does wholesaling means buying 1 box of a product from a
convinience store? DISAGREE
3. Does retailing needs a physical store? DISAGREE
4. Does reatiling can be useful to business management profit?
AGREE
5. Does retailing exsist in the business world? AGREE
ASSESSMENT
1. b
2. c
3. a
4. a
5. b
6. c
7-10
A, D, E and G
11. a
12-15 Limited
Approach, Third Edition Global Edition, Pearson Education
B,C,D, and E [A] Berman, B. Evan, J.E., Chaterjee, P.,(2018) Retail Management: A strategic
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Answer Key
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Reference
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