PPT 1-1 Consumer Behavior Ignacio J. Vázquez E. © 2007McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Introduction to the Introduction to the World of RetailingWorld of Retailing

Chapter 1Chapter 1

PPT 1-2 Consumer Behavior Ignacio J. Vázquez E. © 2007

• Retailing – a set of business activities that adds 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?

PPT 1-3 Consumer Behavior Ignacio J. Vázquez E. © 2007

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

PPT 1-4 Consumer Behavior Ignacio J. Vázquez E. © 2007

Manufacturer’s Perspective

The Four P’s of Marketing

Distribution

Retailers are part of the

distribution channel

Retailers are part of the

distribution channelProduct

Price

Promotion

PPT 1-5 Consumer Behavior Ignacio J. Vázquez E. © 2007

Distribution Channel

Distribution ChannelPPT 1-4 Distribution Channel

PPT 1-4

PPT 1-6 Consumer Behavior Ignacio J. Vázquez E. © 2007

Accounting Finance

MISOperations

Marketing

Human Resources

Retailers are a Business Like Manufacturers

PPT 1-7 Consumer Behavior Ignacio J. Vázquez E. © 2007

Decision Variables for Retailers

Customer Service

Store Design and Display

MerchandiseAssortment

Communication Mix

LocationPricing

Retail

Strategy

PPT 1-8 Consumer Behavior Ignacio J. Vázquez E. © 2007

Retailing is a High Tech Industry

- Selling Merchandise over the Internet

- Using Internet to manage supply chains

- Analyze POS data to tailor assortments to stores

- Computer systems for merchandise planning

PPT 1-9 Consumer Behavior Ignacio J. Vázquez E. © 2007

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

PPT 1-10 Consumer Behavior Ignacio J. Vázquez E. © 2007

Hot Topic’s Retail Mix

Retail Strategy

Customer Service Location

Merchandise

Assortment

PricingCommunication

Mix

Store Design

And Display

PPT 1-11 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Retail Strategy

Customer Service

Location

MerchandiseAssortment

PricingCommunication Mix

Store DesignAnd Display

PPT 1-12 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Free-standing Stores

Customer Service

MerchandiseAssortment

PricingCommunication

Mix

Store DisplayAnd Design

Location Strategy

PPT 1-13 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Location

PricingCommunication

Mix

Store Design and Display

Customer Service

Large Number of Categories

Few Items in Each Category

Assortment Strategy

PPT 1-14 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Location

Communication Mix

Store Design and Display

Customer Service

Merchandise Assortment

Low, EDLP

Pricing Strategy

PPT 1-15 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Communication Mix

TV and NewspaperInsert Ads

Location

Pricing

Store Design and Display

Customer Service

Merchandise Assortment

PPT 1-16 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Store Design and Display

Basic, Special Displays

for Products

Customer Service Location

Merchandise Assortments

PricingCommunication

Mix

PPT 1-17 Consumer Behavior Ignacio J. Vázquez E. © 2007

Wal-Mart’s Retail Mix

Customer Service

Limited

Location

Merchandise Assortment

Pricing

Communication Mix

Store Design and Display

PPT 1-18 Consumer Behavior Ignacio J. Vázquez E. © 2007

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

PPT 1-19 Consumer Behavior Ignacio J. Vázquez E. © 2007

Types of Jobs in Retailing

Most entry level jobs are in store management or buying, but…

retailers also have staff specialists:

--accounting and finance

--real estate

--human resource management

--supply chain management

--advertising

--public affairs