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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,1-,*,Chapter 1,Introduction to the World of Retailing,What 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.,James Darell/Getty Images,2,Examples of Retailers,Retailers:,Kohls,Macys,Wendys,A,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 America,Costco,The McGraw-Hill Companies,Inc./Andrew Resek,photographer,The McGraw-Hill Companies,Inc./John Flournoy,photographer,3,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,Ryan McVay/Getty Images,4,Nature of Retail Industry is Changing,Mom and Pop Store,To Todays Retailer,5,Worlds Largest Retailers,6,The Distribution Channel,7,Manufacturing,Wholesaling and Retailing,Vertical Integration,firm performs more than one set of activities,Ex:retailer invests in wholesaling or manufacturing,Backward Integration,retailer performs some distribution and manufacturing activities,Ex:JCPenney sells Arizona jeans(Private Label),Forward Integration,manufacturers undertake retailing activities,Ex:Ralph Lauren operates its own stores,8,How Retailers Add Value,Break Bulk,-Buy it in quantities customers want,Hold Inventory,-Buy it at a convenient place when you,want it,Provide Assortment,-Buy other products at the same time,Offer Services,-See it before you buy,get credit,layaway,Ryan McVay/Getty Images,9,How Retailers Add Value,The value of the product and service,increases as the retailer performs functions,.,Bicycle is developed at manufacturer,Bicycle is developed in several styles,Bicycle is offered in convenient locations in quantities of one,Bicycle is featured on floor display,Bicycle can be bought on credit or put on layaway,10,Social and Economic Significance of Retailing,Community Support,Over$3.4 trillion in annual U.S.sales,greater than medical care,housing,recreation combined,Employs 27 million people,21%of non-agricultural US workforce,Management training opportunities,Entrepreneurial opportunities,11,Retailing is Big Part of Economy,Services(45.8%),Manufacturing(11.2%),Retail(21.8%),Government(16.6%),Other 5.6%,12,Comparison of Distribution Channels Across the Globe,13,Retail Mix,Retail Strategy,Customer Service,Location,Merchandise,Assortment,Pricing,Communication Mix,Store Design,and Display,14,Macys Retail Mix,Retail Strategy,Customer Service,Location,Merchandise,Assortment,Pricing,Communication Mix,Store Design,and Display,15,Macys Retail Mix,Enclosed Malls,Customer Service,Merchandise,Assortment,Pricing,Communication Mix,Store Display,And Design,Location Strategy,16,Macys Retail Mix,Location,Pricing,Communication Mix,Store Design,and Display,Customer Service,Many Items in Apparel,and Soft Home,Assortment Strategy,17,Macys Retail Mix,Location,Communication Mix,Store Design,and Display,Customer Service,Merchandise Assortment,Moderate with,Frequent Sales,Pricing Strategy,18,Macys Retail Mix,Communication Mix,TV,Newspaper Ads and,Special Events,Store Design,And Display,Merchandise Assortment,Pricing,Customer Service,Location,19,Macys Retail Mix,Store Design and Display,Racetrack with Displays,Customer Service,Location,Merchandise Assortments,Pricing,Communication Mix,20,Macys Retail Mix,Customer Service,Modest,Location,Merchandise Assortment,Pricing,Communication Mix,Store Design and Display,21,Targets Retail Mix,Retail Strategy,Customer Service,Location,Merchandise,Assortment,Pricing,Communication Mix,Store Design,and Display,22,Targets Retail Mix,Free-standing Stores,Customer Service,Merchandise,Assortment,Pricing,Communication Mix,Store Display,And Design,Location Strategy,23,Targets Retail Mix,Location,Pricing,Communication Mix,Store Design,and Display,Customer Service,Large Number of Categories,Private Labels,Few Items in Each Category,Assortment Strategy,24,Targets Retail Mix,Location,Communication Mix,Store Design,and Display,Customer Service,Merchandise Assortment,Low to Modest,Pricing Strategy,25,Targets Retail Mix,Communication Mix,TV and Newspaper,Insert Ads,Store Design,And Display,Customer Service,Location,Merchandise Assortment,Pricing,26,Targets Retail Mix,Store Design and Display,Colorful,wide aisles displays,for products with a grid layout,Customer Service,Location,Merchandise Assortments,Pricing,Communication Mix,27,Targets Retail Mix,Customer Service,Limited,Location,Merchandise Assortment,Pricing,Communication Mix,Store Design and Display,28,JCPenneys Strategic Evolution,Main Street private label soft goods retailer,Changes in environmen
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