Introduction to Retailing
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1 How retailing adds value The nature of retailing Definition of retailing What is retailing? Benefits of retailing to The consumer The manufacturers and retailers When selling a product, what are you really selling You Course Structure Retailing Careers The Nature of Retailing A set of business activities that adds value to the products and services sold to consumers for their personal use A retailer is a business that sells products and/or services to consumers for personal or family use Page I - 1
2 Traditional B&M retailers? Non-store-based retailers? Firms that sell to other businesses as well as consumers? Retailers that we don t think of as retailers? Breaking bulk provide product in quantities consumers want Hold inventory provide product at a convenient place Provide assortment provide a variety of products Offer services see before you buy, get credit, layaway! " # Page I - 2
3 Price: Manufacturer Wholesaler Retailer Consumer %! "# & Accounting Finance Marketing Operations MIS HR ' Page I - 3
4 Over 2.5 trillion annually > medical care + housing + recreation Employs 17% of the population About the same as manufacturing Management training opportunities Entrepreneurial opportunities ( Technology in supply-chain management Using POS data to tailor assortments to Stores Consumers Computer systems for merchandise planning e-retailing % Kiosk Shop Dept Store Discount Chain Mall Internet Page I - 4
5 You Course Structure Retailing Careers The Nature of Retailing # Don t need college Low pay Long hours Boring Dead-end job No benefits Unstable environment & '() U.S. college graduates Business Degree (BS, and MBA) 20 Universities participating Mail questionnaires 7266 respondents in final sample Focused on marketing positions Work week Compensation Burnout Page I - 5
6 * ' ' + Entry level management positions Department manager or assistant buyer Manage people and have P&L responsibility on your first job Stores jobs vs corporate jobs Buying Accounting, finance, real estate Human resource management Computer information systems Supply chain management Advertising and public relations Stores Jobs Fast paced, action-oriented Immediate feedback People business Uneven work hours Corporate Jobs Slower paced Postponed or no feedback Task-oriented business Traditional business hours Starting pay average, but compensation can become excellent Something new and different each day % You Course Structure Retailing Careers The Nature of Retailing & Page I - 6
7 ( Two non-comprehensive exams Occasional team assignments Short cases Team consulting project Qualitative research focus groups Survey research based on above Final presentation ' ( ) ( The business activities involved in selling goods and services to consumers for their personal, or household use. It includes every sale of goods and services to the final consumer., 2.4 Million Retailers Generate 3 Trillion in Sales* Manufacturer Wholesaler Retailer Final Consumer *Sources: Berman & Evans, Retail Management, U.S. Department of Commerce, 1995 Page I - 7
8 - Retailing Benefits Retailing benefits customers, manufacturers, and wholesalers and creates economic utility. Customers Bulk breaking Assorting Storing Informing Services Manufacturers & Retailers Distributes goods & information Absorbs risks: - Physical deterioration - Fashion Change - Technological obsolescence Smoothes production cycle Creates Customer Utility Form Place Time Possession What are retailing s benefits in these areas? Retailing is not selling products it is supplying customer satisfaction ( Up to 3 people Good mix of skills Computer-literate Creative & design Detail-oriented Able to work well together Can accommodate each other s schedules Next week Names, phone numbers, addresses Page I - 8
9 You Course Structure Retailing Careers The Nature of Retailing Page I - 9
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