Question | Answer |
RETAILING | A set of business activities that adds value to the products and services sold to consumers for their personal or family use |
RETAILER | A business that sells products and/or services to consumers for personal or family use |
FIRMS THAT ARE RETAILERS AND WHOLESALERS? | Office Depot, The Home Depot, United Airlines, Bank of America |
SUPPLY CHAIN: | A set of that make and deliver a given set of goods and services to the ultimate consumer |
TYPICAL SUPPLY CHAIN NETWORK: | Suppliers>Plants>Distribution Centers>Retailers>Customers
ex) Manufacturing>Wholesalers>Retailers>Consumer |
VERTICAL INTEGRATION | Firm performs more than one set of activities in the supply chain ex)retailer invest in wholesaling and manufacturing |
BACKWARD INTEGRATION | Retailer performs some distribution and manufacturing ex)JCPenny sales Arizona jeans (private label) |
FORWARD INTEGRATION | Manufacturers undertake retailing activities ex)Ralph Lauren operates in own stores |
HOW DO RETAILERS ADD VALUE? | 1)Provide Assortment 2)Break Bulk 3)Hold Inventory 4)Offer Services
"Value of product/service increases as the retailer performs functions". |
RETAIL MANAGEMENT DECISION PROCESS: [THE WORLD OF RETAILING] | Introduction to the world of retail, types of retail, multichannel retailing, customer buying behavior |
WHAT SHOULD A RETAIL STRATEGY IDENTIFY? | The target market, the product and service mix, a long-term comparative advantage |
DECISION VARIABLES FOR RETAILERS: [MARKETING MIX] | Customer service, merchandise assortment, location, communication mix, pricing, store design and display |
ENVIRONMENT: [MACRO AND MICRO] | Macro= financial and social aspects; Micro=customers and competitors aspects |
COMPETITION: [INTRA-TYPE AND INTER-TYPE] | Intra-type:similar merchandise and similar formats; Inter-type=similar merchandise and different formats |