INTRODUCTION TO THE WORLD OF RETAILING By Duane Martenson What we are going to cover What Retailing is The importance of retailing Career opportunities in retail What is retailing to you? Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use The Four P’s of Marketing Product Distribution Price Promotion How do Retailers add value? ■ ■ ■ ■ Provide Assortment Buy other products at the same time Break Bulk Buy it in quantities customers want Hold Inventory Buy it at a convenient place when you want it Offer Services See it before you buy; get credit; layaway What do Retailers do for Corporate Social Responsibility McDonalds Houses Starbuck fair trade coffee Target community Give Back Retail has changed! So has the career opportunities! To Mom and Pop Store Store Design Today’s Retailer Operations Human Resources Loss Prevention Real Estate MIS Finance Promotion/Advertising Misconceptions ■ ■ ■ ■ ■ ■ ■ ■ ■ College not needed Low pay Long hours Boring Dead-end job No benefits Everyone is part-time Unstable environment No opportunity for women and minorities The Retail Management Decision Process The World of Retailing (chapters 1-4) Environmental Factors Macro– technology, social, ethical, political Micro– competition and customers Competition – Intratype competition– between same type retialer (supermarket vs supermarket) Greater Variety of products makes for scrambled merchandising thus increased Intertype competition. (examples of scrambled merchandising??) Customers – Consumer Behavior The Retail Management Decision Process Retailing Strategy (chapters 5-11) How the firm plans to focus its resources to accomplish objectives Targets Merchandise Long term competitive advantage Wallmart vs Toys R Us Small towns -- big towns Wide Varity shallow selection – every toy made Low price — low price Self service – Self service The Retail Management Decision Process Retailing Strategy (chapters 5-11) Cont. Strategic Decision Area Marketing strategy Financial strategy Location strategy Organizational structure Human Resource Information systems Supply Chain Strategies CRM Implementing the Retail Strategy Chapter 12-19 Retail Mix – combination of factors used to satisfy customer needs and influence their purchase decision Types of merchandise and service Pricing Advertising and promotion Store design and merchandise display Level of customer service Store location Wal-Mart’s Retail Mix 1-12 Customer Service Store Design And Display Location Retail Strategy Communication Mix Pricing Merchandise Assortment Wal-Mart’s Retail Mix 1-13 Location Strategy Free-standing Stores Customer Service Store Display And Design Communication Mix Merchandise Assortment Pricing Wal-Mart’s Retail Mix 1-14 Assortment Strategy Customer Service Location Large Number of Categories Store Design and Display Communication Mix Pricing Few Items in Each Category Wal-Mart’s Retail Mix 1-15 Location Customer Service Pricing Strategy Merchandise Assortment Store Design and Display Communication Mix Low, EDLP Wal-Mart’s Retail Mix 1-16 Customer Service Communication Mix Store Design and Display Location Merchandise Assortment Pricing TV and Newspaper Insert Ads Wal-Mart’s Retail Mix 1-17 Store Design and Display Customer Service Basic, Special Displays for Products Location Merchandise Assortments Communication Mix Pricing Wal-Mart’s Retail Mix 1-18 Customer Service Limited Location Merchandise Assortment Store Design and Display Communication Mix Pricing Checklist for Making Ethical Decisions Rubric For Assignments Points--Assignment posted to Wiki by Due Date Points--Assignment met your requirement s Points--Quality of Assignment 0 10 15 20 3 days late with no communicatio n on progress 3-5 days late and the group kept you updated on their Progress 1-2 days late with no communicatio n as to the groups progress 1-2 days late and the group kept you updated on their progress 0 20 30 40 50 Met most requirement s Met all requirement s 40 50 Did not meet requirements 0 Did not complete Met a few requirement s 20 Low quality, didn’t adequately address topic Met some requirements 30 Went into great detail but did not apply all of the concepts correctly Brief but accurately applied the concepts of the topic 25 On Time Went into great detail and accurately applied the concepts of the topic Assignment 1 Interview somebody that has a career in the retail field. Ask questions in the following areas What is an average day like for your position? What career opportunities in retail do they see for someone with a degree in business? What are the benefits and draw back to working in retail? What does their business do for social responsibility Any ethical situation you have encountered. Post the interview as a video or podcast to introduction to retail wiki page. (YouTube, Blaberize…) Assignment 2 Use Screencasting or Digital Storytelling that illustrates the role retailers play in the distribution chain. (Prezi or Photopeach, or Adobe would work well… others?) Terms to use: Backward/Forward Integration or Vertical Integration Breaking Bulk, Holding Inventory, Providing Assortment and Services Supply Chain Anything else you see fit….. Post to Introduction to Retail Wiki page. Assignment 3 Retail mix Go to two local retailers that are intertype Competitors and compare their retail mix. Examples (Walmart and Kmart) (Safeway and FTC) (Deer Mt. and Terry Peak) Customer Service Store Design and display Communication mix Location Merchandise Assortment Price Use a digital story telling method or multimedia to illustrate the comparisons to document that is appropriate. (Blabberize, Comic Life, Prezi….) Post to wiki!