RETAIL+MANAGEMEN++CHAPTER Business AD.pptx

retail management

1. RETAIL MANAGEMEN CHAPTER 1

2. RETAILING IN TODAY’S GLOBALIZED MARKET WHAT IS RETAILING? Retailing includes all forms of selling to the final consumer. Retailers offer products for personal or family use; in contrast, wholesalers offer products, generally, for business purposes. It is the last marketing step, the last leg, in the channel of distribution. Without retailers, consumers would be spending so much time and effort to procure products they need.

3. TRENDS IN THE RETAIL INDUSTRY Global retailing . TECHNOLOGICAL ADVANCES . Customer service to prosumers . Non-store retailing . Inflight/Marine Retailing . Shopping malls, a phenomenal retailing trend. Franchising Trend in the Philippines .

4. TYPES OF RETAILERS Retailers can be classified according to the type of merchandise and services they sell, location, various strategic differences, and method of ownership. However, looking at the different ownership categories will provide us the broad picture, as shown in Table 1.

5. TYPES OF RETAILERS

6. TYPES OF RETAILERS

7. GENERAL FUNCTIONS OF MARKETING CHANNELS Key functions done in marketing channels include management of marketing communications, inventory management, physical distribution, market feedback, and financial risk. Details for each key functions are shown in Table 3.

8. GENERAL FUNCTIONS OF MARKETING CHANNELS

9. GENERAL FUNCTIONS OF MARKETING CHANNELS *Technology is a big help in today's inventory management and other store management activities of retailers. For example, most retailers have POS cash registers or cash registers with scanners that are connected to a database, such that every transaction is automatically recorded. At the end of the day, the retail store management can get the summary of all the sales transactions which can be used for marketing management decision-making, such as inventory management.

10. IMPORTANCE OF MARKETING CHANNELS. Marketing channels determine the locations where (and how) the customers can avail of/ buy the product or service. Thus, channels, such as the location of retailers and wholesalers, are important. Apart from place, the other 3 Ps of marketing — products, price, and promotion— can be manipulated frequently and easily.

11. TYPES OF MARKETING CHANNELS A marketing channel may be direct or indirect. A direct channel describes movement of the product from the producer/ manufacturer to the user without intermediaries. With consumer channels, the user is the ultimate consumer, while in a business to-business channels, the user is another firm or company. An indirect channel uses intermediaries to move products from the producer to the final consumer.

12. TYPES OF MARKETING CHANNELS Under the Consumer Channels, there may be four types of routes for the products— from the producer direct to the consumer (direct channel); 2) from the producer to the retailer and finally to the consumer (indirect channel); 3) from the produce to the wholesaler, then to the retailer and finally, to the consumer (indirect channels); and 4) from the producer to an agent , the to the wholesaler, retailer, and finally to the consumer (indirect channels).

13. TYPES OF MARKETING CHANNELS Under the Business-to-Business Channels, there may also be four types Of routes— from the producer direct to the business buyer (direct channel); 2) from the producer to the wholesaler, then to the business buyer (indirect channels); 3) from the producer, to the agent, then to the business buyer (indirect channels); and 4) from the producer to the agent, wholesaler, then business buyer (indirect channels).

14. FUNCTIONS PERFORMED BY RETAILERS Retailers handle smaller, but more frequent customer transactions. Besides buying smaller sizes, most consumers buy products frequently because they lack sufficient storage space and funds to maintain large inventories of products. . Retailers assemble an assortment of products and services convenient for household consumption. Otherwise, shoppers would have to go to different places to buy what they need. Retailers emphasize atmospherics, that is, a pleasant shopping environment for customers. Atmospherics pertains to a retailer's combination of architecture, layout, color scheme, sound and temperature monitoring, special events, prices, displays, and other factors that attract and stimulate consumers.

15. GLOBAL GROWTH OPPORTUNITIES The global market is big . Global mindset. Think global, Act Local . - The cultural perspective conceptualizes global mindset in the context of the increased cultural diversity associated with globalization. The strategic perspective of global mindset views it in the context of the increased complexity, outside of the cultural diversity, generated by globalization. Globalization, according to Friedman (2005 ).

16. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). Friedman identified ten forces that "flattened" the world: 1) The fall of Berlin Wall (November 9, 1989) and the advent of PCs and the Windows software, which produced a global unification under the auspices of capitalism; 2) When Netscape went public —the confluence of the Internet, e-mail and Web-browsers and the "overinvestment" in optical fiber that occurred during the dot. com bubble have produced a new template for economic activity;

17. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). Friedman identified ten forces that "flattened" the world: 3) Work flow software—the extension of common Web-based standards has become operational; 4) Open sourcing— self- organizing, collaborative communities are evolving and allowing people to expand and broaden knowledge free of barriers; 5) Outsourcing—"second buyers" (mainly India's brainpower);

18. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). Friedman identified ten forces that "flattened" the world: 6) Offshoring—moving factories; 7) Supply-chaining— collaborating horizontally among suppliers, retailers, and customers to create value; 8) In-sourcing— servicing supply chains, third-party-managed logistics; 9) In-forming— the ability to build and deploy your own personal supply chain (of information, knowledge, and entertainment); and 10) Amplifying technologies ("steroids") —such as increased computing speed, file-sharing, additional devices and wireless connections.

19. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). He also pointed out the emergence of "triple convergence": 1) a global, Web-enabled playing field that allows for multiple forms of collaboration open today to more people, in more places, on more days, in more ways than anything like it was ever before in the history of the world; 2) development of new ways to collaborate horizontally; and 3) the opening up of the societies of China, India, Russia, Eastern Europe, Latin America, and Central Asia. This triple convergence is the most important force shaping the global economics and politics in the early 21st century.

20. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). Friedman has seven prescriptions for companies aspiring to be successful in the era of globalization: 1) When the world goes flat—and you are feeling flattened —reach for a shovel and dig inside yourself. Don't try to build walls; 2) The small shall act big—by being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper; 3) The big shall act small—by learning how to act really small by enablin their customers to act really big;

21. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). Friedman has seven prescriptions for companies aspiring to be successful in the era of globalization: 4) The best companies are the best collaborators— the next layers of value creation are becoming so complex that no single firm or department is going to be able to master them alone; 5) The best companies stay healthy by getting regular X-rays and then selling the results to their clients;

22. GLOBAL GROWTH OPPORTUNITIES Globalization, according to Friedman (2005 ). Friedman has seven prescriptions for companies aspiring to be successful in the era of globalization: 6) The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share and hire more and different specialists — not to save money by firing more people; and 7) Outsourcing isn't just for Benedict Arnolds. It's also for idealists.