WEEK 2 Flashcards
is a distribution process, which encompasses
all activities involved in selling goods directly to the end
consumer, who intends to use the product.
Retailing
TYPES OF RETAILING
Store Retailing
Non-Store Retailing
Corporate Retailing
Service Retailing
involves the operation of physical outlets where customers can explore
and purchase products firsthand. It encompasses a wide range of businesses, from
department stores to boutique shops.
Store Retailing
Examples of Store Retailing
Department Store
Specialty Store
Convenience Store
is a type of retailing where the transaction happens outside
conventional shops or stores.
Non-Store Retailing
Examples of Non-Store Retailing
E-commerce Sites
Direct Selling
involves retail structures such as franchises or chain stores by large companies that own multiple outlets across various locations.
Corporate Retailing
Examples of Corporate Retailing
Franchise
Dealership
also plays a crucial role in consumers’ daily life. From salons and spas to travel agencies and entertainment venues, service retailers focus on delivering experiences rather than physical goods.
Service Retailing
Examples of Service Retailing
Restaurant Chains
Theatres
Hotels & Resorts
9000-6000 BC
Animals such as camels, sheep, and cows are the oldest forms of currency.
Barter System
200 BC
The earliest known written documentation of the Chinese Abacus (which is
still used by some)
Accounting
1883
The first cash register is invented by
James Witty
The Selfridges redefines retail:
From a necessary errand to a form
of entertainment, shopping became
an activity that appealed to every sense.
“Excite the mind, and the hand will
reach the pocket”.
HARRY GORDON SELFRIDGE
owner of Humpty
Dumpty Supermarket in Oklahoma City invents the shopping cart.
Sylvan N. Goldman
TYPES OF DISTRIBUTION PROCESS
Manufacturer
Wholesaler
Retailer
Customer
The first Wal-Mart opens, followed by Kmart and Target, who follow suit and open their doors during the 1960’s.
Big Box Retail
Inventory tracking methods vastly improve. Bar coding is developed in
the 1960’s, and the very first scan of a UPC barcode was on a pack of Wrigley
company chewing gum in 1974.
Bar Codes
Online Shopping is born! ______ is
the first to accept an online order –
mushroom, pepperoni with extracheese.
Pizza Hut
introduces mobile payments in a limited number of vending machine.
Coca Cola
Steve Jobs hosted a press event at Apple’s first store at the Tyson’s Corner Center mall –upscale mall located in Virginia.
First Apple Store
The retail industry and others urge merchants to go “green” and save paper by making printed receipts optional.
E-receipts
refers to solutions that assist retailers to
enhance their operations. So, these advanced technologies assist retailers in
increasing their sales. Technology is
transforming the way we do business.
Retail Technology
Top 4 Technology in the Evolution of Retail Industry
Mobile Commerce
Social Media
Big Data
Cloud Computing
refers to the buying and selling of goods and services via mobile devices such as smartphones and
tablets.
Mobile Commerce
platforms like Facebook, Twitter, and Instagram have become essential marketing channels for retailers.
Social Media
refers to large sets of data that can be analyzed to reveal trends and
patterns.
Big Data
allows businesses to store and access data and applications
on remote servers instead of on local ones.
Cloud Computing
to give your business an
accurate method of tracking sales and for many businesses track
product inventory.
Point of Sale
Role of Technology in the Retail Industry
Point of Sale
Customer Service
Management of Inventory
Price Auditing
The practice of managing inventory has
always been very costly for businesses.
Management of Inventory
is
necessary, though, for companies to ensure
that they’re not overcharging or
undercharging their customers. Technology
has streamlined this process by automating
price checks when products are scanned.
Price Auditing
refers to the process of
allowing another individual to use your business
model, trademark, services, and/or products in return
for payment.
Franchising
its marketing, branding, services, and
products to teach someone else how to clone it for an upfront
fee
Franchising Fee
charging an ongoing fee for the
support that you provide. The ongoing fee is often
made to be a small percentage of sales or profits.
Royalty Fee
The contract binding the franchisor and franchisee is the
‘______’ it commonly refers to the business operated by
the franchisee.
Franchise
CHARACTERISTICS OF FRANCHISING
Two Parties
Exclusive Right
Assistance
Policies
Limited Period
This method involves the franchisor and the franchisee. Both of them sign a written agreement. (FDD)
Two Parties
The franchisor grants the franchisee the
right to use their brand name, trademarks, and techniques under specific guidelines.
Exclusive Right
The franchisor supports the franchisee in
critical areas like marketing, technology, recordkeeping, staff training, etc
Assistance
The former gives an undertaking
not to engage in any competing business. Moreover, per the terms of
the agreement between the two parties, the franchisee must not
disclose any confidential information regarding the business.
Policies
Franchisees can use the franchisor’s brand name,
trademarks, and techniques for a period mentioned in the agreement,
for example, seven years. Upon the expiry of the contract, both
parties may agree to renew the contract.
Limited Period
TYPES OF FRANCHISING
• Job-Franchise
• Product (Distribution) Franchise
• Business Format Franchise
• Investment Franchise
• Conversion Franchise
typically features the following: home-based, one owner with minimal
staff, and low investment.
Job Franchise
which has the highest percentage of
total retail sales, represents a supplier-dealer relationship. The franchisor provides the
product while the franchisee is given the right to sell that product.
Product (Distribution) Franchise
the most common type of franchise. Under
this model, the franchisor provides everything from detailed business operating procedures
to ongoing training and support
Business Format Franchise
requires a management team and a substantial capital investment, is a large-scale operation. Generally, the franchisee hires a team
to operate the business and is not involved in the business day-to-day. The goals are
to obtain a return on investment and potentially a capital gain on exit.
Investment Franchise
is similar to a standard franchise relationship, but in this case
the franchisee joins their independent business with a franchisor in the same industry. This produces a win-win partnership as the franchisor expands its network while the franchisee reaps
the benefits of adopting a well-known brand with its trademarks, marketing programs, training
opportunities, critical client service standards, and successful operating procedures.
Conversion Franchise
A Different Way to Categorize Types of Franchises
Traditional Franchise
Business Franchise
Social Franchise
These types of franchises obligate the franchisee to sell a
particular product or service in a specific market. Job and Product Franchises fall into this
category.
Traditional Franchise
These types of franchises involve a franchise business with
multiple products and moving parts. Business Format, Investment, and Conversion Franchises
fit in this category.
Business Franchise
This is a newer category that incorporates techniques from
Traditional and Business Franchises. The goal is to facilitate governments and nonprofit
organizations as they work to effectuate change.
Social Franchise
