berman chapter 1 pwrpt

7/30/2019 Berman Chapter 1 PwrPt

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

AnIntroduction

to Retailing RETAIL MANAGEMENT:

A STRATEGIC

APPROACH 11th Edition




Chapter ObjectivesTo define retailing, consider it from different

perspectives, demonstrate its impact, and noteits special characteristics

To introduce the concept of strategic planningand apply it

To show why the retailing concept is thefoundation 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

Retailing encompasses the business

activities involved in selling goods andservices to consumers for their personal,family, or household use. It includes every

sale to the final consumer.




Issues in RetailingHow can we best serve our customers while earning a

fair profit?

How can we stand out in a highly competitiveenvironment where consumers have so many choices?

How can we grow our business while retaining a coreof loyal customers?




The PhilosophyRetailers can best address these questions by fully understanding and applying the basic

principles of retailing, as well as the elementsin a well-structured, systematic, and focused retail strategy.




An Ideal Candidate for a

Retailing CareerMust be a people person

Must be flexible

Should be decisive

Must have analytical skills

Must have stamina


http://slidepdf.com/reader/full/berman-chapter-1-pwrpt 7/271-7Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Table 1-1: The 10 Largest Retailers in the

United StatesRank Company Main Emphasis

1 Wal-Mart Full-line discount stores, supercenters,

membership clubs

2 Home Depot Home centers, design centers3 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

Manufacturer

Wholesaler FinalConsumer

Retailer



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

Sorting Process



Multi-Channel Retailing

A retailer sells to consumers through

multiple retail formats: Web sites

Physical stores



Figure 1-6: Brooks Brothers and

Multi-Channel Retailing




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 supportpayment terms

operating flexibility




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 specifiedgeographic area

Intensive: suppliers sell through as many retailers aspossible

Selective: suppliers sell through a moderate numberof retailers




Figure 1-7: Comparing Distribution Types




Figure 1-8: Special Characteristics

Affecting Retailers

ImpulsePurchase

Popularityof

Stores

Retailer’s Strategy

SmallAverage

Sale




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 Planning1. Define the type of business

2. Set long-run and short-run objectives

3. Determine the customer market4. Devise an overall, long-run plan

5. Implement an integrated strategy

6. Evaluate and correct




Figure 1-9: “Expect More. Pay Less” at

Target




Aspects of Target’s Strategy Growth objectives

Appeal to a prime

marketDistinctive image

Focus

Customer service

Multiple points of contact

Employee relations

Innovation

Commitment totechnology

Community involvement

Monitoringperformance




Figure 1-10: Applying the Retailing Concept

Customer Orientation

Coordinated Effort

Value-driven

Goal Orientation

Retailing

Concept

RetailStrategy




Figure 1-11: The Build-A-Bear Experience:

Never Boring




Customer Service Activities undertaken by a retailer in conjunction

with the basic goods and services it sells. This

includes:

Store hours

Parking

Shopper-friendlinessCredit acceptance

Salespeople




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 toour 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 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 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 withinformation on people’s attributes and shopping

behaviors




Approaches to the Study of Retailing

Institutional

Functional

Strategic



1 27R il M ( ) 20 0 P Ed i I bli hi P i H ll

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

berman chapter 1 pwrpt

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