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1、Chapter 1Introduction to the World of RetailingWhat is Retailing?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
2、. James Darell/Getty Images2Examples of Retailers Retailers: Kohls, Macys, Wendys, Amazon , Jiffy Lube, AMC Theaters, American Eagle Outfitter, Kroger Firms that are retailers and wholesalers that sell to other business as well as consumers: Office Depot, The Home Depot, United Airlines, Bank of Ame
3、rica, Costco The McGraw-Hill Companies, Inc./Andrew Resek, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographer 3Retailing is a High Tech IndustrySelling Merchandise over the InternetUsing Internet to manage supply chainsAnalyze POS data to tailor assortments to storesComputer sys
4、tems for merchandise planningRyan McVay/Getty Images4Nature of Retail Industry is ChangingMom and Pop StoreTo Todays Retailer5Worlds Largest Retailers6The Distribution Channel7Manufacturing, Wholesaling and RetailingVertical Integration firm performs more than one set of activitiesEx: retailer inves
5、ts in wholesaling or manufacturingBackward Integration retailer performs some distribution and manufacturing activitiesEx: JCPenney sells Arizona jeans (Private Label)Forward Integration manufacturers undertake retailing activitiesEx: Ralph Lauren operates its own stores8How Retailers Add ValueBreak
6、 Bulk -Buy it in quantities customers wantHold Inventory -Buy it at a convenient place when you want itProvide Assortment -Buy other products at the same timeOffer Services -See it before you buy, get credit, layawayRyan McVay/Getty Images9How Retailers Add Value The value of the product and service
7、 increases as the retailer performs functions.Bicycle is developed at manufacturerBicycle is developed in several stylesBicycle is offered in convenient locations in quantities of oneBicycle is featured on floor displayBicycle can be bought on credit or put on layaway10Social and Economic Significan
8、ce of RetailingCommunity SupportOver $3.4 trillion in annual U.S. sales greater than medical care, housing, recreation combinedEmploys 27 million people 21% of non-agricultural US workforceManagement training opportunitiesEntrepreneurial opportunities11Retailing is Big Part of EconomyServices (45.8%
9、)Manufacturing (11.2%)Retail (21.8%)Government (16.6%)Other 5.6%12Comparison of Distribution Channels Across the Globe13Retail MixRetail StrategyCustomer ServiceLocationMerchandiseAssortmentPricingCommunication MixStore Designand Display14Macys Retail MixRetail StrategyCustomer ServiceLocationMercha
10、ndiseAssortmentPricingCommunication MixStore Designand Display15Macys Retail MixEnclosed MallsCustomer ServiceMerchandiseAssortmentPricingCommunication MixStore DisplayAnd DesignLocation Strategy16Macys Retail MixLocationPricingCommunication MixStore Design and DisplayCustomer ServiceMany Items in A
11、pparel and Soft HomeAssortment Strategy17Macys Retail MixLocationCommunication MixStore Design and DisplayCustomer ServiceMerchandise AssortmentModerate with Frequent SalesPricing Strategy18Macys Retail MixCommunication MixTV, Newspaper Ads andSpecial EventsStore DesignAnd DisplayMerchandise Assortm
12、entPricingCustomer ServiceLocation19Macys Retail MixStore Design and DisplayRacetrack with DisplaysCustomer ServiceLocationMerchandise AssortmentsPricingCommunication Mix20Macys Retail MixCustomer ServiceModestLocationMerchandise AssortmentPricingCommunication MixStore Design and Display21Targets Re
13、tail MixRetail StrategyCustomer ServiceLocationMerchandiseAssortmentPricingCommunication MixStore Designand Display22Targets Retail MixFree-standing StoresCustomer ServiceMerchandiseAssortmentPricingCommunication MixStore DisplayAnd DesignLocation Strategy23Targets Retail MixLocationPricingCommunica
14、tion MixStore Design and DisplayCustomer ServiceLarge Number of CategoriesPrivate Labels Few Items in Each CategoryAssortment Strategy24Targets Retail MixLocationCommunication MixStore Design and DisplayCustomer ServiceMerchandise AssortmentLow to ModestPricing Strategy25Targets Retail MixCommunicat
15、ion MixTV and Newspaper Insert AdsStore DesignAnd DisplayCustomer ServiceLocationMerchandise AssortmentPricing26Targets Retail MixStore Design and DisplayColorful, wide aisles displaysfor products with a grid layoutCustomer ServiceLocationMerchandise AssortmentsPricingCommunication Mix27Targets Reta
16、il MixCustomer ServiceLimitedLocationMerchandise AssortmentPricingCommunication MixStore Design and Display28JCPenneys Strategic EvolutionMain Street private label soft goods retailerChanges in environment - increased disposable income, growth of suburbs, interstate highway programEmulate Sears in e
17、nclosed suburban mallsFocus on soft goods - drop automotive, sporting goods, hardwareDevelop catalog, develop electronic retailingStand alone storesCentralized checkout 29Organic and natural foods supermarket chainAssortment beyond organic/natural foodsPrivate labels - Whole Food, 360 Day ValueLove,
18、 trust, and employee empowermentAlways innovation: Candy Island Lamar Street Greens Fifth Street Seafood In-store Massage TherapistWhole Foods Implementation30Ethical Situations for a Retail ManagerShould a retailer sell merchandise that is suspects was made using child labor?Should it advertise that its prices are lowest in area even though some items are not?Should a buyer accept an expensive gift from a vendor?Should salespeople use high-pressure sales when they know the product is not the best for the customers needs?Should a retailer give p
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