logging in or signing up Intro to Retailing Marketing csgiang211 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1350 Category: Entertainment License: All Rights Reserved Like it (3) Dislike it (0) Added: February 02, 2010 This Presentation is Public Favorites: 1 Presentation Description Introduction to retailing marketing Comments Posting comment... By: lokeshp (14 month(s) ago) i need help of this ppt for my presentation. how can i download it here?? Saving..... Post Reply Close Saving..... Edit Comment Close By: anandsinghkhati (14 month(s) ago) pl send me ppt on anandsinghkhati@gmail.com Saving..... Post Reply Close Saving..... 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Edit Comment Close Premium member Presentation Transcript INTRODUCTION TO RETAIL MARKETING : INTRODUCTION TO RETAIL MARKETING Introduction and Core Concept The Functions of Retailing : The Functions of Retailing Retailing in Society Retailer part of supply chain for any product it sells Supply Chain consist of different stages: Raw material final consumer Links raw material producers, manufacturer, wholesalers and transport firms with the retailer and the final consumer Involves a distribution system that arranges for the shipment of the product from producer to final consumer The Functions of Retailing : The Functions of Retailing The retailer comes at the end of the supply chain and provides the final link between producer and consumer. Modern retailing – link very closely to whole supply chain or even be dominant part of the supply process. Major grocery retailers – TESCO – play a very active role in arranging distribution of products to their stores. Other retailers own production facilities and some producers of fashion items also operate stores as well as selling to other retailers. The Functions of Retailing : The Functions of Retailing Economic Significance – retailing is responsible for about 9 percent of output and employment Social Institution – important because 30 percent of spending goes on products and services that we buy from retailers: Immense changes in the products and services we use, the way we work, in family life and our leisure activities. Made possible due to changes in retailing – large supermarket or superstore and advances in distribution that have significantly reduced the cost of shopping for groceries, electrical goods and many other items. The Functions of Retailing : The Functions of Retailing Politically important – large out-of-town shopping centres have been developed along with the increase in car ownership. Modern technology – retailers become sophisticated users: E.g. electronic tills are linked to computers to help control stock and track customer spending and various technical devices are increasingly used to combat retail crime. The Retail Industry : The Retail Industry Retailing and the Retail Industry Retailing is selling products to consumers Also sells services – e.g. MacDonald’s Public house operators and industrial caterers declared themselves to be retailers Medical and health services have also begun to behave as retailers with the opening of local health centres (but the government classifies these as belonging to the hospitality and health industries respectively – it restricts the retailing industry to product retailers) In the context of our study, retailing will include the selling of products and services The Retail Industry : The Retail Industry Measuring the Retail Industry Measure its share of national output using Gross Domestic Product (GDP) Standard Industrial Classification system (SIC) divides the economy into different major industry groups, one of which is retailing. Retail employment in relation to total employment Monetary contribution of retailing is through the total net output or value added of all the firms in the industry. Level of retail activity, which is given by gross sales (or turnover) of retailers and is another indicator of the economic and social importance of the industry. The Retail Industry : The Retail Industry Retail Industry Structure Predominantly food stores Sales of food, drink and tobacco account for more than half of total sales by value. They are divided into: Non-specialized food stores: include supermarkets, co-operative stores and convenience store that carry a wide range of food items and also other non-food lines. Specialized food stores: include bakers, butchers, dairies, fishmongers, greengrocers, healthfood shops, delicatessens, and tobacconists The Retail Industry : The Retail Industry Retail Industry Structure Predominantly non-food stores Non-specialized non-food stores Mix retailers that sell a wide range of merchandise Department stores such as Parkson, variety chains such as Woolworth and multi-sector retailers such as Boots. Textiles, clothing and leather footwear Stores selling fashion, footwear, and leather goods and household textiles Include department stores such as Debenhams and variety chains such as Marks & Spencer, where clothing and household textiles are a dominant feature of the stores Household good stores Include china and glass stores, do-it-yourself (DIY) and hardware stores, electrical household appliances, furniture, lighting, music, radio and television. Retail Industry Structure : Retail Industry Structure Other stores Wide collection of stores including antique stores, bookshops and stationers, carpet and floorcovering stores, catalogue retailers, computer stores, office supplies, florists, garden centres, pharmacies, and drugstores, photo/optical, sports and leisure stores, second-hand shops, toys and games stores, wallpaper shops Non-store retailing and repair General mail order firms Non-store retailers, including market stalls, door-to-door retailers, vending machines and mobile shops Repair of personal and household goods Retail Business Structure : Retail Business Structure Retail Outlets by Ownership Owned by independent (1 outlet) Owned by large independents (2 – 9 outlets) Owned by multiples (incl. co-ops) Retail Business Structure : Retail Business Structure Retailers take on different forms and sell to us in different ways: Sell to us through shops, such as the supermarkets and the local corner shop Sell to us through mail order catalogue, such as FREEMANS Sell to us through television, such as QVC Sell to us through the Internet, such as amazon.com Sell us services, such as McDonald’s, the local pub and the local bank Definition of Retailing : Definition of Retailing Retailing is a set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to consumers on a relatively small scale. Definition of Retailing : Definition of Retailing Retailers sell to the final (non-business) consumer. The final consumer buys final products that do not undergo any further change outside the home or non-work environment. E.g. Timber is a final product when sold to a householder to build fence. On the other hand, timber is an intermediate product when it is sold to a carpenter to build fence for a customer Retailers buy in large quantities and sell in small quantities to consumers, who buy for their own personal or household use. Definition of Retailing : Definition of Retailing Retailers often buy products from a wide variety of distant, even global sources. Resell them at nearby store, mail order, television or the Internet Organized the required delivery and collection services Definition of Retailing : Definition of Retailing Retailers can sell services Diverse range of activities such as garages, restaurants and banks. Require additional manual and technical skills or knowledge Invest substantial amounts in their facilities and operating systems. Definition of Retailing : Definition of Retailing Retailers sell to many different consumers Prepared to sell to whoever will buy their products Restricted to only by legal restraint – alcohol to minors and by any discriminatory practices they operate. The Functions of Retailing : The Functions of Retailing Retailers meet the needs of their customers by providing the following essential services: Accessibility of location Convenience of timing Convenience of size Information Lifestyle support Social Role of Retailing : Social Role of Retailing People want to see improvement in the general level of consumption and social cohesion over time. Retailers that are seen to contribute to the local or national community generally receive greater political support that allows them to operate more profitably. Enhance their perceived value to the community by acting as a focal point and through effective public relations and promotions campaigns including sponsorship. E.g. Teck Kong Trading Retail Formats (The Store Package) : Retail Formats (The Store Package) Location Size Merchandise: Product mix Merchandise assortment Breadth – measured by the number of different merchandize brands stocked Depth – measured by the average number of stock-keeping units (SKUs) within each brand Retail Formats (The Store Package) : Retail Formats (The Store Package) Price Atmosphere and Service Neighbourhood-based stores: General stores – old fashioned, with low level of self-services. Variety stores – tend to have mixed or scrambled merchandise, the range of which will vary with size of store Convenience grocery stores – open till late evening Retail Formats (The Store Package) : Retail Formats (The Store Package) One-stop stores: Supermarkets Department stores Hypermarkets and superstores Specialist stores Computer shop, fancy dress hire and hobby shops Mass merchandisers Discounters Discount stores Off-price stores Successful Retailing : Successful Retailing Building Success The retailer established its market position to serve the needs of a well-defined group or groups of consumers The retailer supports its market position It prices the products to maintain perceived value for money relative to competitors It uses appropriate layout and display to evoke the customer’s hidden and perceived needs to enhance the shopping experience and so increase sales It promotes the products effectively over the period to sell them according to plan Successful Retailing : Successful Retailing The retailer effectively manages store operations or mail order, television or internet sales system The retailer manages behind the scenes operations effectively: Appropriate administration and personnel management procedures Proper financial management and control procedures Take advantage of technology in physical distribution and in information technology in planning effective distribution Successful Retailing : Successful Retailing The retailer maintains its business and community standing: Uses appropriate publicity to show that it understands its local community and deals with consumers in a socially acceptable manner Larger businesses pay due regard to environmental concerns and contribute to wider community participation of events and support community activities Business Strategy : Business Strategy Senior management has to develop a business plan based on the most important factors in the organisation’s success: Identify the strategic forces acting on the firm Identify direction of change Develop strategic responses Ensure that there is an appropriate organisational structure through which the strategic response can be communicated and implemented. Type of Business : Type of Business The major types of business in retailing are: The unincorporated business – sole proprietorship or partnership The private company The public company Co-operatives The Value of the Business : The Value of the Business Is the price it would fetch if it were sold as a going concern in the open market: Depends on how investors view the potential future profits, taking into account the business’s previous financial history, market growth and potential competition and the state of the economy. Value of the property owned plus the goodwill of the business (the extra value the owners have acquired through building up customer loyalty, giving it a competitive edge in the market and therefore higher profits. The Value of the Business : The Value of the Business The market value of the business is important because: It provides long-term wealth for its owners It provides the asset base on which loans were made It affects the price at which firms raise new money through selling shares Questions? : Questions? You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Intro to Retailing Marketing csgiang211 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1350 Category: Entertainment License: All Rights Reserved Like it (3) Dislike it (0) Added: February 02, 2010 This Presentation is Public Favorites: 1 Presentation Description Introduction to retailing marketing Comments Posting comment... By: lokeshp (14 month(s) ago) i need help of this ppt for my presentation. how can i download it here?? Saving..... Post Reply Close Saving..... Edit Comment Close By: anandsinghkhati (14 month(s) ago) pl send me ppt on anandsinghkhati@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: manoj_2032 (15 month(s) ago) can you please send me thins presentation on bombayduck@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: pkmawlia (16 month(s) ago) very important Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript INTRODUCTION TO RETAIL MARKETING : INTRODUCTION TO RETAIL MARKETING Introduction and Core Concept The Functions of Retailing : The Functions of Retailing Retailing in Society Retailer part of supply chain for any product it sells Supply Chain consist of different stages: Raw material final consumer Links raw material producers, manufacturer, wholesalers and transport firms with the retailer and the final consumer Involves a distribution system that arranges for the shipment of the product from producer to final consumer The Functions of Retailing : The Functions of Retailing The retailer comes at the end of the supply chain and provides the final link between producer and consumer. Modern retailing – link very closely to whole supply chain or even be dominant part of the supply process. Major grocery retailers – TESCO – play a very active role in arranging distribution of products to their stores. Other retailers own production facilities and some producers of fashion items also operate stores as well as selling to other retailers. The Functions of Retailing : The Functions of Retailing Economic Significance – retailing is responsible for about 9 percent of output and employment Social Institution – important because 30 percent of spending goes on products and services that we buy from retailers: Immense changes in the products and services we use, the way we work, in family life and our leisure activities. Made possible due to changes in retailing – large supermarket or superstore and advances in distribution that have significantly reduced the cost of shopping for groceries, electrical goods and many other items. The Functions of Retailing : The Functions of Retailing Politically important – large out-of-town shopping centres have been developed along with the increase in car ownership. Modern technology – retailers become sophisticated users: E.g. electronic tills are linked to computers to help control stock and track customer spending and various technical devices are increasingly used to combat retail crime. The Retail Industry : The Retail Industry Retailing and the Retail Industry Retailing is selling products to consumers Also sells services – e.g. MacDonald’s Public house operators and industrial caterers declared themselves to be retailers Medical and health services have also begun to behave as retailers with the opening of local health centres (but the government classifies these as belonging to the hospitality and health industries respectively – it restricts the retailing industry to product retailers) In the context of our study, retailing will include the selling of products and services The Retail Industry : The Retail Industry Measuring the Retail Industry Measure its share of national output using Gross Domestic Product (GDP) Standard Industrial Classification system (SIC) divides the economy into different major industry groups, one of which is retailing. Retail employment in relation to total employment Monetary contribution of retailing is through the total net output or value added of all the firms in the industry. Level of retail activity, which is given by gross sales (or turnover) of retailers and is another indicator of the economic and social importance of the industry. The Retail Industry : The Retail Industry Retail Industry Structure Predominantly food stores Sales of food, drink and tobacco account for more than half of total sales by value. They are divided into: Non-specialized food stores: include supermarkets, co-operative stores and convenience store that carry a wide range of food items and also other non-food lines. Specialized food stores: include bakers, butchers, dairies, fishmongers, greengrocers, healthfood shops, delicatessens, and tobacconists The Retail Industry : The Retail Industry Retail Industry Structure Predominantly non-food stores Non-specialized non-food stores Mix retailers that sell a wide range of merchandise Department stores such as Parkson, variety chains such as Woolworth and multi-sector retailers such as Boots. Textiles, clothing and leather footwear Stores selling fashion, footwear, and leather goods and household textiles Include department stores such as Debenhams and variety chains such as Marks & Spencer, where clothing and household textiles are a dominant feature of the stores Household good stores Include china and glass stores, do-it-yourself (DIY) and hardware stores, electrical household appliances, furniture, lighting, music, radio and television. Retail Industry Structure : Retail Industry Structure Other stores Wide collection of stores including antique stores, bookshops and stationers, carpet and floorcovering stores, catalogue retailers, computer stores, office supplies, florists, garden centres, pharmacies, and drugstores, photo/optical, sports and leisure stores, second-hand shops, toys and games stores, wallpaper shops Non-store retailing and repair General mail order firms Non-store retailers, including market stalls, door-to-door retailers, vending machines and mobile shops Repair of personal and household goods Retail Business Structure : Retail Business Structure Retail Outlets by Ownership Owned by independent (1 outlet) Owned by large independents (2 – 9 outlets) Owned by multiples (incl. co-ops) Retail Business Structure : Retail Business Structure Retailers take on different forms and sell to us in different ways: Sell to us through shops, such as the supermarkets and the local corner shop Sell to us through mail order catalogue, such as FREEMANS Sell to us through television, such as QVC Sell to us through the Internet, such as amazon.com Sell us services, such as McDonald’s, the local pub and the local bank Definition of Retailing : Definition of Retailing Retailing is a set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to consumers on a relatively small scale. Definition of Retailing : Definition of Retailing Retailers sell to the final (non-business) consumer. The final consumer buys final products that do not undergo any further change outside the home or non-work environment. E.g. Timber is a final product when sold to a householder to build fence. On the other hand, timber is an intermediate product when it is sold to a carpenter to build fence for a customer Retailers buy in large quantities and sell in small quantities to consumers, who buy for their own personal or household use. Definition of Retailing : Definition of Retailing Retailers often buy products from a wide variety of distant, even global sources. Resell them at nearby store, mail order, television or the Internet Organized the required delivery and collection services Definition of Retailing : Definition of Retailing Retailers can sell services Diverse range of activities such as garages, restaurants and banks. Require additional manual and technical skills or knowledge Invest substantial amounts in their facilities and operating systems. Definition of Retailing : Definition of Retailing Retailers sell to many different consumers Prepared to sell to whoever will buy their products Restricted to only by legal restraint – alcohol to minors and by any discriminatory practices they operate. The Functions of Retailing : The Functions of Retailing Retailers meet the needs of their customers by providing the following essential services: Accessibility of location Convenience of timing Convenience of size Information Lifestyle support Social Role of Retailing : Social Role of Retailing People want to see improvement in the general level of consumption and social cohesion over time. Retailers that are seen to contribute to the local or national community generally receive greater political support that allows them to operate more profitably. Enhance their perceived value to the community by acting as a focal point and through effective public relations and promotions campaigns including sponsorship. E.g. Teck Kong Trading Retail Formats (The Store Package) : Retail Formats (The Store Package) Location Size Merchandise: Product mix Merchandise assortment Breadth – measured by the number of different merchandize brands stocked Depth – measured by the average number of stock-keeping units (SKUs) within each brand Retail Formats (The Store Package) : Retail Formats (The Store Package) Price Atmosphere and Service Neighbourhood-based stores: General stores – old fashioned, with low level of self-services. Variety stores – tend to have mixed or scrambled merchandise, the range of which will vary with size of store Convenience grocery stores – open till late evening Retail Formats (The Store Package) : Retail Formats (The Store Package) One-stop stores: Supermarkets Department stores Hypermarkets and superstores Specialist stores Computer shop, fancy dress hire and hobby shops Mass merchandisers Discounters Discount stores Off-price stores Successful Retailing : Successful Retailing Building Success The retailer established its market position to serve the needs of a well-defined group or groups of consumers The retailer supports its market position It prices the products to maintain perceived value for money relative to competitors It uses appropriate layout and display to evoke the customer’s hidden and perceived needs to enhance the shopping experience and so increase sales It promotes the products effectively over the period to sell them according to plan Successful Retailing : Successful Retailing The retailer effectively manages store operations or mail order, television or internet sales system The retailer manages behind the scenes operations effectively: Appropriate administration and personnel management procedures Proper financial management and control procedures Take advantage of technology in physical distribution and in information technology in planning effective distribution Successful Retailing : Successful Retailing The retailer maintains its business and community standing: Uses appropriate publicity to show that it understands its local community and deals with consumers in a socially acceptable manner Larger businesses pay due regard to environmental concerns and contribute to wider community participation of events and support community activities Business Strategy : Business Strategy Senior management has to develop a business plan based on the most important factors in the organisation’s success: Identify the strategic forces acting on the firm Identify direction of change Develop strategic responses Ensure that there is an appropriate organisational structure through which the strategic response can be communicated and implemented. Type of Business : Type of Business The major types of business in retailing are: The unincorporated business – sole proprietorship or partnership The private company The public company Co-operatives The Value of the Business : The Value of the Business Is the price it would fetch if it were sold as a going concern in the open market: Depends on how investors view the potential future profits, taking into account the business’s previous financial history, market growth and potential competition and the state of the economy. Value of the property owned plus the goodwill of the business (the extra value the owners have acquired through building up customer loyalty, giving it a competitive edge in the market and therefore higher profits. The Value of the Business : The Value of the Business The market value of the business is important because: It provides long-term wealth for its owners It provides the asset base on which loans were made It affects the price at which firms raise new money through selling shares Questions? : Questions?