berman_ch_01 11e DAC Edits

Chapter 1: 

1- 1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter 1 An Introduction to Retailing RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS

Chapter Objectives: 

1- 2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter Objectives To define retailing, consider it from different perspectives, demonstrate its impact, and note its special characteristics To introduce the concept of strategic planning and apply it To show why the retailing concept is the foundation of a successful business, with an emphasis on the total retail experience, customer service, and relationship retailing To indicate the focus and format of the text

Retailing: 

1- 3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 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.

Issues in Retailing: 

1- 4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Issues in Retailing How can we best serve our customers while earning a fair profit? How can we stand out in a highly competitive environment where consumers have so many choices? How can we grow our business while retaining a core of loyal customers?

The Philosophy: 

1- 5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall The Philosophy Retailers can best address these questions by fully understanding and applying the basic principles of retailing, as well as the elements in a well-structured, systematic, and focused retail strategy.

PowerPoint Presentation: 

1- 6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Walmart Express: 

Walmart Express Walmart Stores the size of WaWa? That is the size of Walmart Express ! 1- 7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

PowerPoint Presentation: 

1- 8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Guess Where This Is?: 

Guess Where This Is? 1- 9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall http://youtu.be/5gQ7e7jEA1I

QSR Going Upscale: 

1- 10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall QSR Going Upscale http://youtu.be/7TaNicYdt0I

Walgreens: 

Walgreens Walgreens Is Boring? 1- 11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Figure 1-2: Careers in Retailing: 

1- 12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-2: Careers in Retailing

An Ideal Candidate for a Retailing Career: 

1- 13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall An Ideal Candidate for a Retailing Career Must be a people person Must be flexible Should be decisive Must have analytical skills Must have stamina

Table 1-1: The 10 Largest Retailers in the United States: 

1- 14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 1-1: The 10 Largest Retailers in the United States Rank Company Main Emphasis 1 Wal-Mart Full-line discount stores, supercenters, membership clubs 2 Home Depot Home centers, design centers 3 CVS Caremark Drugstores 4 Kroger Supermarkets, convenience stores, jewelry stores 5 Costco Membership clubs 6 Target Full-line discount stores, supercenters 7 Walgreens Drugstores 8 Sears Holdings Department stores, specialty stores 9 Lowe’s Home centers 10 Safeway Supermarkets

Figure 1-4: A Typical Channel of Distribution: 

1- 15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-4: A Typical Channel of Distribution Manufacturer Wholesaler Final Consumer Retailer

Figure 1-5: The Retailer’s Role in the Sorting Process: 

1- 16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-5: The Retailer’s Role in the Sorting Process

Multi-Channel Retailing: 

1- 17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Multi-Channel Retailing A retailer sells to consumers through multiple retail formats: Web sites Physical stores

Macy’s Multi-Channel Retailing: 

1- 18 Macy’s Multi-Channel Retailing

Relationship Management Among Retailers and Suppliers: 

1- 19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Relationship Management Among Retailers and Suppliers Disagreements may occur in the following areas: control over channel profit allocation number of competing retailers product displays promotional support payment terms operating flexibility

Distribution Types: 

1- 20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Distribution Types Exclusive : suppliers make agreements with one or few retailers, designating such retailers as the only ones to carry certain brands or products within a specified geographic area Intensive : suppliers sell through as many retailers as possible Selective : suppliers sell through a moderate number of retailers

Figure 1-7: Comparing Distribution Types: 

1- 21 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-7: Comparing Distribution Types

Figure 1-8: Special Characteristics Affecting Retailers: 

1- 22 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-8: Special Characteristics Affecting Retailers Impulse Purchase Popularity of Stores Retailer’s Strategy Small Average Sale

Retail Strategy: 

1- 23 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Retail Strategy An overall plan for guiding a retail firm Influences the firm’s business activities Influences firm’s response to market forces

Six Steps in Strategic Planning: 

1- 24 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Six Steps in Strategic Planning 1. Define the type of business 2. Set long-run and short-run objectives 3. Determine the customer market 4. Devise an overall, long-run plan 5. Implement an integrated strategy 6. Evaluate and correct

“Expect More. Pay Less” at Target: 

1- 25 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall “Expect More. Pay Less” at Target Our Brand Promise Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less . ® brand promise. To support our mission, we are guided by our commitments to great value, the community, diversity and the environment.

Aspects of Target’s Strategy: 

1- 26 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Aspects of Target’s Strategy What do you think?

Figure 1-10: Applying the Retailing Concept: 

1- 27 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-10: Applying the Retailing Concept Customer Orientation Coordinated Effort Value-driven Goal Orientation Retailing Concept Retail Strategy

Customer Service: 

1- 28 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Customer Service Activities undertaken by a retailer in conjunction with the basic goods and services it sells. This includes: Store hours Parking Shopper-friendliness Credit acceptance Salespeople

Figure 1-12: A Customer Respect Checklist: 

1- 29 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 1-12: A Customer Respect Checklist Do we trust our customers? Do we stand behind what we sell? Is keeping commitments to customers important to our company? Do we value customer time? Do we communicate with customers respectfully? Do we treat all customers with respect? Do we thank customers for their business? Do we respect employees?

Relationship Retailing: 

1- 30 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Relationship Retailing Retailers seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter Concentrate on the total retail experience Monitor satisfaction Stay in touch with customers

Effective Relationship Retailing: 

1- 31 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Effective Relationship Retailing Use a “win-win” approach It is easier to keep existing customers happy than to gain new ones Develop a customer database Ongoing customer contact is improved with information on people’s attributes and shopping behaviors

Approaches to the Study of Retailing: 

1- 32 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Approaches to the Study of Retailing Institutional Functional Strategic

Parts of Retail Management: A Strategic Approach: 

1- 33 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Parts of Retail Management: A Strategic Approach Building relationships and strategic planning Retailing institutions Consumer behavior and information gathering Elements of retailing strategy Integrating, analyzing, and improving retail strategy

PowerPoint Presentation: 

1- 34 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.