Understanding The World Of Retailing Chapter 1

What Is Retailing..? Retailing is the set of business activities that adds value to the products and services sold to consumers. Often people think of retailing only as the sale of products in store but retailing also involves sales of services. For example: a home delivered pizza, etc.

A Retailer’s Role In Distribution Channel Retailer satisfy consumer needs by having right merchandise, at right price, at the right place. Retailers also provide markets for producers to sell their merchandise. Some manufacturers are performing both production and retailing business activities which is called vertical integration.

Functions Performed By Retailers Retailers provide important functions that increase the value of products and services they sell to consumers and facilitate the distribution of those products and services for those who produce them. These functions are: 1. Providing an assortment of products and services. 2. Breaking Bulk. 3. Holding inventory. 4. Providing services.

1. Providing An Assortment Of Products And Services. Supermarkets typically carry thousands of products. Offering an assortment enables their customers to choose from a wide selection of brands.

2. Breaking Bulk To reduce the quantity of product different retailer purchase small quantity product,thus bulk quantity can be divided into small once. Retailers then offer the products in smaller quantities to individual consumer This is called breaking bulk. Breaking bulk is important to both manufacturers and consumers.

3. Holding Inventory. A major function of retailers is to keep inventory into user friendly sizes so that products will be available when consumer want them. Thus consumer can keep a small inventory of products at home.

(4) Providing services. Retailers provide services that make it easier for customers to buy and use products. They display product so consumers can see and test them before buying. Some retailers have salespeople for providing information about products, and also provide home delivery service. Day and night service is also offered.

Types of Retailers We classify retailers on the basis of their retail mix. Types of retailers:- Food stores:-there are three types of retailer. ( convenience stores).those store which product can be used on daily basis. General Merchandise Retailers:- ( Specialty stores, category specialist, medicine. And so on.

Multichannel Retailers. A multichannel retailer is a retailer that sells merchandise or services through more then one channel. Multichannel retailing include. 1 Store based. 2.Nonstored base. (Electronic, catalog/direct mail, direct selling, TV home

What is Consumer Buying Behavior. Here we discuss six stages in the buying process. 1.Need recognition 2. Search for information 3. Evaluate retailers 4. Select a retailer. 5. Visit store site 6. Repeat store product. 2. Information search about product 3. Evaluate product 4. Select product 5. Purchase merchandise 1. Need recognition 6. Post purchase evaluation.

What is the Retail Market Strategy. A retail market strategy is a statement identifying, 1.The retailers target market towards which the retailer plans to focus its recourses, how to invest our capital,and which market to target it business market or consumer market.

(2)Retail location and Site Selection strategies. Location strategies are important for both consumer and competitive reasons. The retailer consider the following issues before selecting a retail area:- People living in the area. Their lifestyles. How wealthy they are. Is the area growing. Level of competition.

(3)Human Recourse Strategies. Two critical issues of HRM are development of committed workforce and effective management of a diverse workforce. Building a committed workforce is critical in retailing because high turn over has a major effect on profitability. Managing diversity is also very important because consumers are becoming more diverse.

What is Customer Relationship management. Customer relationship management (CRM) is business philosophy and set of strategies, programs and systems that focuses on identifying and building loyalty with a firms most valued customers. 1. Collecting Customer Data. 2. Analyzing and Identifying Target Customers 3. Developing CRM program 4. Implementing CRM Program

What is Merchandise Planning System. It is the process by which the retailer attempts to offer the right quantity of the right merchandise. Retailers are required to make decisions about thousands of individual items from hundreds of vendors. Buying process must be organized in systematic, orderly way.

( 1) Buying Merchandise Retailers must determine their branding strategy. Should they buy well known national brands or to develop private brands with their own name on it. How and where they will meet and communicate with their vendors? Will it be face to face or over the internet?

Pricing. Pricing decisions is vital because consumers are looking for good value when they buy merchandise and services. Many consumers have become price sensitive. Others are willing to pay extra for quality.

19 Store layout, and design. Customer Service. Managing the store. Store Management.

Managing the store. Responsibilities of store managers are as under. 1: Managing employees.(number of employee needed) 2: Controlling cost.(using cost effective strategies) 3: Managing merchandise.(analyzing the product) 4: Providing consumer service.

Store layout, design and visual merchandising. Here the decisions are needed about how to display the product, in which place because there are thousands of products and each product must be accessible easily.

Customer Service. Customer service is the set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. Services offered by retailers. Acceptance of credit card. Credit. Delivery to home. Parking Play areas for children. Presentation on how to use merchandise. Repair service Demonstration of product Display of merchandise. Extended store hours