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PPT 1-2 Consumer Behavior Ignacio J. Vázquez E. © 2007 McG
raw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Introduction to theIntroduction to theWorld of RetailingWorld of Retailing
Chapter 1Chapter 1
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Retailing ± a set of business activities thatadds 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.
What is Retailing?
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Examples of Retailers
Retailers:
-Sears, Holiday Inn, McDonalds, Amazon.com, JiffyLube, AMC Theaters, American Eagle Outfitter, F AOSchwartz, Kroger
Firms that are retailers and wholesalers that
sell to other business as well as consumers:-Office Depot, The Home Depot, United Airlines, Bankof America, Sams Clubs
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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
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Manufacturer¶s Perspective
The Four P¶s of Marketing
Distribution
Retailers are part of the
distribution channel
Retailers are part of the
distribution channel
Product
Price
Promotion
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Distribution Channel
D istribu tion C hanne lPPT 1-4
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Accounting Finance
MISOperations
Marketing
Human Resources
Retailers are a Business Like Manufacturers
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PPT 1-10 Consumer Behavior Ignacio J. Vázquez E. © 2007
Decision Variables for Retailers
Customer Service
Store Designand Display
MerchandiseAssortment
CommunicationMix
LocationPricing
Retail
Strategy
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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
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Nature of Retail Industry is Changing
Mom and Pop Store
To Today¶s Retailer
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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
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Retail Environment Differs Across the Globe
US JapanConcentration High Medium
Store Size Big Small
Role of Low High
Wholesaling
Efficiency High Low
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JC Penney¶s Strategic Evolution
Main Street private label soft goods retailer
Changes in environment -- increased disposableincome, 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 (?)
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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
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Whole Foods Implementation
Strategy - organic and naturalfoods supermarket chain
Assortment beyond
organic/natural foods
Private labels - WholeFood, 360 Day Value
Love, trust, and employeeempowerment
Equality in compensation
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Hot Topic¶s Retail Mix
Enclosed malls
Customer Service
Merchandise Assortment
PricingCommunicationMix
Store Display And Design
Location Strategy
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Hot Topic¶s Retail Mix
Location
PricingCommunication
Mix
Store Designand Display
Customer
Service
Many DifferentHot Band
T-shirts and
Accessories
Assortment Strategy
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Hot Topic¶s Retail Mix
Location
CommunicationMix
Store Designand Display
Customer Service
Merchandise Assortment
Modest with Sales
Pricing Strategy
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Hot Topic¶s Retail Mix
Communication Mix
TV andMagazine Ads
Store Design And Display
Customer Service Location
Merchandise Assortment
Pricing
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Hot Topic¶s Retail Mix
Store Design and Display
Heavy Metal,
Gothic Look
Customer Service Location
Merchandise
Assortments
PricingCommunication
Mix
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Hot Topic¶s Retail Mix
Customer Service
Modest
Location
Merchandise Assortment
Pricing
CommunicationMix
Store Designand Display
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Macy¶s Retail Mix
Retail Strategy
Customer Service
Location
MerchandiseAssortment
PricingCommunicationMix
Store DesignAnd Display
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Macy¶s Retail Mix
Enclosed Malls
Customer Service
Merchandise Assortment
PricingCommunicationMix
Store Display And Design
Location Strategy
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Macy¶s Retail Mix
Location
PricingCommunication
Mix
Store Designand Display
Customer
Service
Many Items inApparel and
Soft Home
Assortment Strategy
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Macy¶s Retail Mix
Communication Mix
TV, Newspaper Adsand Special Events
Store Design And Display Merchandise
Assortment
Pricing
Customer Service Location
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Macy¶s Retail Mix
Store Design and Display
Ring with Displays
Customer Service Location
Merchandise
Assortments
PricingCommunication
Mix
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Macy¶s Retail Mix
Customer Service
Modest
Location
Merchandise Assortment
Pricing
CommunicationMix
Store Designand Display
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Wal-Mart¶s Retail Mix
Retail Strategy
Customer Service
Location
MerchandiseAssortment
PricingCommunicationMix
Store DesignAnd Display
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Wal-Mart¶s Retail Mix
Free-standing Stores
Customer Service
Merchandise Assortment
PricingCommunication
Mix
Store Display And Design
Location Strategy
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Wal-Mart¶s Retail Mix
Location
PricingCommunication
Mix
Store Designand Display
Customer
Service
Large Number of Categories
Few Items
in Each Category
Assortment Strategy
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Wal-Mart¶s Retail Mix
Communication Mix
TV and Newspaper Insert Ads
Location
Pricing
Store Designand Display
Customer Service
Merchandise Assortment
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Wal-Mart¶s Retail Mix
Store Design and Display
Basic, SpecialDisplays
for Products
Customer Service Location
Merchandise A
ssortments
PricingCommunication
Mix
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Wal-Mart¶s Retail Mix
Customer Service
Limited
Location
Merchandise Assortment
Pricing
CommunicationMix
Store Designand Display
C O t iti i R t ili
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Career Opportunities in RetailingStart Your Own Business
Walton Family (Wal-Mart)
Fisher (The Gap)
Wexner (Limited)
Menard (Menard¶s)
Marcus, Blank (The Home Depot)
Kellogg (Kohl¶s)
Schulze (Best Buy)
Levine (Family Dollar)
Gold (99Cent Only)
List of Retail Entrepreneurs onForbes 400 Richest Americans
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Misconceptions About Careers in Retailing
Don¶t need college
Low pay
Long hours
Boring
Dead-end job
No benefits
Everyone is part-time Unstable environment
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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
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Types of Jobs in Retailing
Most entry level jobs are instore management or buying, but«
retailers also have staff specialists:--accounting and finance
--real estate
--human resource management--supply chain management
--advertising
--public affairs
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Centro de Comercio Detallsita
www.gda.itesm.mx/ccd ADMINISTRACIÓN DE MERCANCÍAS / PRECIOS: Aprenderás el manejo de compras,
resurtidos e inventarios que realizan las empresas de comercio al detalle.Analizarás la tecnología que está revolucionando el retail y estudiarás laadministración y el establecimiento de precios, así como el desarrollo ypresentación de líneas de producto, dando especial atención a las relacionescomprador-proveedor.
INTER
NSHIP I Y II: Aplicarás tus conocimientos dentro de una empresa detallista.en el verano trabajarás 7hrs. diarias por 5 semanas en una empresa de comercio aldetalle, en donde conocerás las diferentes áreas de la empresa y tendrás laoportunidad de resolver algún problema o realizar un proyecto específico.
ADMINISTRACIÓN DE LA TIENDA Y SERVICIO AL CLIENTE: Analizarás losprocesos en el manejo y administración de una tienda. Aprenderás temasrelacionados con sistemas de información, recursos humanos, imagen y diseño dela tienda (visual merchandising ), servicio al cliente y CRM (Customer Relationship
Management ), entre otros. ESTRATEGIA DE COMERCIO DETALLISTA MULTICANAL: Conocerás las
estrategias que siguen los principales detallistas y su implicación en las ventas.Comprenderás la metodología para la ubicación de puntos de venta. Aplicarás lasestrategias de publicidad y promoción que se utilizan en el comercio detallista.Además, aprenderás la nueva tendencia en el retail de administración por categorías.