2. Exploring Retail Marketing Retailing and Its Benefits 2

3. Chapter 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

4. The Beginnings From the earliest times, people have spent their days providing for their most basic needs. The earliest form of retailing was trading. FoodShelterClothing 4

5. What Is Retailing? Retailing products Retailing involves the selling of products. Products include goods and services. products goods and services that have monetary value goods tangible items that are made, manufactured, or grown retailing the selling of products to the customer 5

6. What Is Retailing? Services Services are often intangible. retail customer purchaser of goods and services from retailers services intangible things that people do for us that make us feel better or enhance our lives retail customer The retailing process ends with the retail customer. 6

7. Retailers Offer Variety Retailing makes a vast variety of goods and services available to consumers. Products such as sweaters are available from many retailers in a variety of colors, types, and styles. 7

8. Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.marketingseries.glencoe.com Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though many larger dot-com companies crashed in the 1990s, small stores such as Harris Cyclery of West Newton, Massachusetts, actually increased sales using a basic Web site. Today a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. For more information on retailing, go to marketingseries.glencoe.com.marketingseries.glencoe.com Peddling Merchandise 8

9. Retailing Is Global Technology has made retailing more of a global activity than ever before. Many large companies have retail outlets in other countries. Some companies sell their products globally via the Web. 9

10. Retailing Is High Tech Retailers use: 10 the Internet to sell goods and services, provide information, and advertise. video technology to train employees. computers to track inventory, orders, sales data, customer demographics, and customer buying habits.

11. Retailers Are Everywhere Your computer Your toothbrush Your clothing Your breakfast Your transportation to school Your textbooks and school supplies Your CDs Your television programs Your bed Goods and Services Available Through Retailing 11

12. Define retailing. What is the difference between goods and services? Name some types of retailers. 1. 2. 3. 12

13. Nature of Retailing manufacturer channels of distribution Products move from the manufacturer through channels of distribution. channel of distribution path merchandise takes from where it is made to the consumer manufacturer business that makes or produces a good for sale directindirect Channels of distribution can be direct and indirect channels of distribution. indirect channel path that follows more than one step direct channel path that leads directly from manufacturer to consumer 13

14. Nature of Retailing wholesaler A product moves from the manufacturer to a wholesaler, to the retailer, and to the consumer. producer channel manufacturer also owns its retail stores; product goes from manufacturer to retail store to customer wholesaler one who buys large quantities of product and then resells it in smaller quantities to retailers producer channel Another type of channel of distribution is the producer channel of distribution. 14

15. Benefits of Retailing Convenience 15  Variety  Payment options  Locations Competitive pricing Community Economy  Employment  Involvement  Jobs

16. Retailers What Retailers Do Buy Merchandise Determine Selling Price Store Goods Purchased Advertise and Promote Products Hire and Manage Employees Display Merchandise Manage Risk Provide Customer Service Service Products Sell Goods or Services 16