WHAT IS RETAILING?

1. WHAT IS RETAILING? MARKETING & ADVERTISING MRS. BELTRA

2. OBJECTIVES • DEFINE THE TERM RETAILING • EXPLAIN THE DIFFERENCE BETWEEN GOODS AND SERVICES • IDENTIFY DIFFERENT CHANNELS OF DISTRIBUTION • EXPLAIN THE BENEFITS OF RETAILING • IDENTIFY SOME OF THE TASKS OF RETAILERS

3. KEY TERMS • RETAILING – IS THE SELLING OF PRODUCTS TO THE CUSTOMER. • PRODUCTS- INCLUDE GOODS AND SERVICES THAT HAVE MONETARY VALUE. • GOODS- TANGIBLE ITEMS THAT ARE MADE, MANUFACTURED, OR GROWN THAT PEOPLE WANT TO BUY AND USE. • SERVICES- ARE THINGS THAT PEOPLE DO FOR US THAT MAKE US FEEL BETTER OR ENCHANCE OUR LIVES IN SOME WAY.

4. RETAIL CUSTOMER –PURCHASER OF THE GOODS AND SERVICES FROM RETAILERS. • MANUFACTURER –BUSINESS THAT MAKES OR PRODUCES THE GOODS FOR SALE. • CHANNEL OF DISTRIBUTION – PATH MERCHANDISE TAKES FROM WHERE IT IS MADE TO THE FINAL CONSUMER. • DIRECT CHANNEL – PATH THAT LEADS DIRECTLY FROM MANUFACTURER TO CONSUMER.

5. INDIRECT CHANNRL – PATH THAT FOLLOWS MORE THAN ONE STEP. • WHOLESALER – ONE WHO BUYS LARGE QUANTITIES OF A PRODUCT AND THEN RESELLS IT IN SMALLER QUANTITIES TO RETAILERS. • PRODUCER CHANNEL – MANUFACTURER ALSO OWNS ITS RETAIL STORES; PRODUCT GOES FROM MANUFACTURER TO RETAIL STORE TO CUSTOMER

6. WHAT IS RETAILING? • THE SELLING OF PRODUCTS TO THE CUSTOMER

7. GOODS • TANGIBLE, MANUFACTURED OR GROWN, TO BUY AND USE

8. SERVICE • WORK SOMEONE DOES FOR OTHERS • OFTEN INTANGIBLE, SERVICE CANNOT BE HELD IN OUR HANDS

9. RETAILING IS GLOBAL

10. INTERNET RETAILERS • PHOTOS AND DESCRIPTIONS ON WEB SITE • ENCOURAGE CUSTOMERS TO PURCHASE ONLINE • OFFER “ONLY ONLINE” PRODUCTS TO RETAIN CUSTOMERS • LARGER SELECTION • COMPUTERS GATHER IMPORTANT DATA ABOUT THEIR CUSTOMERS • TRACK CUSTOMER BUYING HABITS • SOCIAL MEDIA

11. CATALOG RETAILERS • PRODUCTS SOLD THROUGH THE MAIL • PHOTO AND DESCRIPTION • INITIALY, FOR PEOPLE LIVING IN ISOLATED AREAS, FAR FROM STORES • TODAY, EASE OF SHOPPING • ENABLES CUSTOMERS TO SHOP FROM ANYWHERE

12. CHANNELS OF DISTRIBUTION • MANUFACTURER/PRODUCERS • CONSUMERS • RETAILERS • AGENTS • WHOLESALERS • DIRECT • INDIRECT

14. FLORIST • FLOWER GROWER PRODUCES 500 DOZEN TULIP BULBS • A WHOLESALER PURCHASES 250 DOZEN • LOCAL FLORIST DOES NOT NEED ALL 250 • WHOLESALER ALLOWS LOCAL FLORIST TO BUY 20 DOZEN • CUSTOMER PURCHASES A SINGLE DOZEN FROM RETAILER

15. BENEFITING CUSTOMERS • RETAILERS ARE ALWAYS LOOKING FOR WAYS TO BENEFIT THEIR CUSTOMERS.

16. STORES • BROWSING • TOUCHING AND FEELING PRODUCTS • PERSONAL SERVICE • CASH PAYMENT • IMMEDIATE GRATIFICATION • ENTERTAINMENT AND SOCIAL INTERACTION

17. CATALOG • CONVENIENCE • PORTABILITY; ACCESSIBITLITY • SAFETY • VISUAL PRESENTATION

18. INTERNET • CONVENIENCE • SAFETY • BROAD SELECTION • DETAILED INFORMATION • PERSONALIZATION • PROBLEM-SOLVING INFORMATION

19. BENEFITS TO CUSTOMERS • SELECTION OF PRODUCTS • SHOPPING HOURS • CUSTOMER SERVICE ( CREDIT CARDS, PAYMENT, ASSEMBLE PARTS) • LOCATION • COMPETITIVE PRICING

20. BENEFITS TO THE COMMUNITY • SOURCES OF EMPLOYMENT • SUPPORT SCHOOL INVOLVMENT • SUPPORT ORGANIZATIONS, SPECIAL OLYMPICS

21. BENEFITS TO THE ECONOMY • SALES GENERATED BY RETAILERS SUPPORT EMPLOYMENT IN THE COMMUNITY • NATIONAL ECONOMY; EXAMPLE GREEN GIANT

22. NEEDS AND WANTS • DURING DIFFICULT ECONOMIC TIMES, • PEOPLE WILL SATISFY THEIR NEEDS AND WANTS • PURCHASE SOLELY TO SURVIVE • PURCHASE THE COTTON SWEATER INSTEAD OF WOOL

23. WHAT RETAILERS DO • BUY MERCHANDISE • WHAT, WHEN, HOW MUCH • DETERMINE SELLING PRICE • FAIR TO CUSTOMER, ALLOW FOR PROFIT • STORING GOODS PURCHASED • ENOUGH FOR DISPLAY BUT EXTRA STORED AWAY

24. WHAT RETAILERS DO…. • ADVERTISING AND PROMOTING PRODUCTS • CUSTOMERS MADE AWARE OF PRODUCTS/SERVICES • DISPLAYING MERCHANDISE • NEAT AND ATTRACTIVE • SELLING GOODS OR SERVICES • KNOWLEDGABLE AND FRIENDLY ASSOCIATES

25. WHAT RETAILERS DO…. • SERVICING PRODUCTS • OFFER SERVICE CONTRACTS FOR MAINTENANCE • PROVIDING CUSTOMER SERVICES • SERVICES OFFERED TO CUSTOMERS, CREDIT CARDS, DELIVERY, ALTERATIONS • RISK MANAGEEMENT • KNOW WHAT PRODUCTS TO BUY, INSURANCE FOR STORMS, FIRES, SHOPLIFTING • HIRING AND MANAGING EMPLOYEES • RELIABLE, FRIENDLY, AND HONEST EMPLOYEES

27. TRUE / FALSE A service is a tangible item that makes us feel better or enhances our lives in some way. FALSE

28. TRUE / FALSE The retail industry is the second-largest industry in the country.   TRUE

29. TRUE / FALSE Consumers can only buy goods from the United States, Mexico, and Canada. FALSE

30. TRUE / FALSE Retailers sell their goods only in physical stores.   FALSE

31. TRUE / FALSE A direct channel distribution path leads directly from the manufacturer to the consumer. TRUE

32. Which of the following is not a retail job task? a.   buying merchandise   b.   fulfilling customer needs   c.   manufacturing goods   d.   setting prices ✔

33. This retail employment area deals with the day-to-day operations of the retailer:   a.   store management   b.   finance   c.   loss prevention   d.   marketing and advertising ✔

34. A business that makes or produces goods for sale is a: a.   retailer b.   manufacturer c.   wholesaler   d.   direct channel   ✔

35. Which of the following is a benefit of retailing?   a.   Adds to the local economy   b.   provides employment   c.   supports local community   d.   all of the above ✔

36. A shoe repair shop is an example of:   a.   manufactured goods   b.   producer channel   c.   service retailer   d.   wholesaler ✔

37. CHECKING CONCEPTS*HAND IN* • DEFINE RETAILING • DESCRIBE THE DIFFERENCE BETWEEN GOODS AND SERVICES • DRAW AND NAME THE CHANNELS OF DISTRIBUTION • EXPLAIN THREE BENEFITS OF RETAILING • LIST THREE TASKS OF RETAILERS • IDENTIFY TWO WAYS RETAILERS USE COMPUTERS • DESCRIBE THE DIFFERENCE BETWEEN A MANUFACTURER AND A WHOLESALER • EXPLAIN HOW RETAILING HAS BECOME GLOBAL

38. WRITING*HAND IN* • WRITE A LETTER TO YOUR FAVORITE RETAILER AND EXPLAIN WHY YOU BUY ITS PRODUCT.

39. MATH*HAND IN* • YOU JUST BOUGHT A NEW BICYCLE FOR $250 PLUS 8% SALES TAX. ASSEMBLY COSTS $35. WHAT IS YOUR TOTAL BILL. • ABDUL BOUGHT FIVE T-SHIRTS ($9 EACH) AND TWO PAIRS OF JEANS ($22 EACH) FROM OLD NAVY. WHAT IS THE TOTAL COST OF THE T-SHITS AND JEANS? TAX IS 7%.