Retail marketing
Chapter 1
What is Retailing?
Retailing- the set of business activities that adds value to the products and services sold to consumers for personal or family use.
The Retailer's Role in a Supply Chain
Retailer- business that sells products and/or services to consumers for their personal or family use and links manufacturers to consumers
Supply chain- set of firms that make and deliver goods and services to consumers manufacturing wholesaler retailer consumer
Vertical integration- a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores
Backward integration- retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private label merchandise
Forward integration- manufacturer undertakes retailing and wholesaling activities
Retailers Create Value
1. Providing Assortments- allows consumers to choose from many different options
2. Breaking bulk- enables manufacturers to efficiently make and ship merchandise in larger quantities and enables consumers to purchase merchandise in smaller, more useful quantities
3. Holding inventory- products will be available when consumers want them
4. Providing services- make it easier for customers to buy and use products
Social and Economic Significance of Retailing
Social Responsibility
Corporate social responsibility (CSR)- involves and organization voluntarily taking responsibility for the impacts of its activities on its employees, its customers, the community, and the environment. 1. activities required by law 2. provide short-term financial benefit for the company 3. operate in what they believe is the "right thing" to do 4. engage in socially and environmentally for the "well being" of everyone
Retail Sales in 2007 $4.5 trillion in retail sales about 8.1% of total GDP comes from retail sales
Employment
What is Retailing?
Retailing- the set of business activities that adds value to the products and services sold to consumers for personal or family use.
The Retailer's Role in a Supply Chain
Retailer- business that sells products and/or services to consumers for their personal or family use and links manufacturers to consumers
Supply chain- set of firms that make and deliver goods and services to consumers manufacturing wholesaler retailer consumer
Vertical integration- a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores
Backward integration- retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private label merchandise
Forward integration- manufacturer undertakes retailing and wholesaling activities
Retailers Create Value
1. Providing Assortments- allows consumers to choose from many different options
2. Breaking bulk- enables manufacturers to efficiently make and ship merchandise in larger quantities and enables consumers to purchase merchandise in smaller, more useful quantities
3. Holding inventory- products will be available when consumers want them
4. Providing services- make it easier for customers to buy and use products
Social and Economic Significance of Retailing
Social Responsibility
Corporate social responsibility (CSR)- involves and organization voluntarily taking responsibility for the impacts of its activities on its employees, its customers, the community, and the environment. 1. activities required by law 2. provide short-term financial benefit for the company 3. operate in what they believe is the "right thing" to do 4. engage in socially and environmentally for the "well being" of everyone
Retail Sales in 2007 $4.5 trillion in retail sales about 8.1% of total GDP comes from retail sales
Employment