Chapter 13: Buying Merchandise
National (Manufacturer) Brands
Designed, produced, and marketed by a vendor and sold by many retailers
Private-Label (Store) Brands
Developed by a retailer and only sold in the retailers outlets (House,
Information Systems and
Supply Chain Management
(not in your spiral text)
Dollar General DC Fulton, MO
13 DCs for 12,000 stores
Fulton serves 1300 stores within 400 miles
1,200,000 s.f. 33 acres under roof
What types of locations are available to
What are the relative advantages of each
Why are some locations particularly well suited
to specific retail strategies?
Which types of locations ar
Three Ways to Raise Profits
Sell More Units
Raise Price of Each Unit Sold
Why do marketers tend to focus on the
fun stuff and not financial matters?
How is a retail strategy reflected in retailers
Calculating Margin Worksheet
Gross Margin (Markup) %
Remember: What % of net sales (or the
total price) is COGS and what % is
margin? They always add up to 100%.
Retail Site Location
What factors do retailers consider when determining
where to locate their stores?
What is a trade area for a store, and how do retailers
determine the trade area?
What factors do retailers consider when deciding
Types of Retailers
Types of Merchandise Retailers
General Merchandise Retailers
Mom and Pop Stores
Why make the distinction?
(Latin definition: in all ways or places)
Walmart Baby Registry Phone Scan
The Multi-Channel Retailer
A retailer that sells merchandise or service
through more than one channel. By using
Introduction to the World of Retailing
The World of Retailing
Types of Jobs in Retailing
Most entry level jobs are in
store management or buying, but theres
-accounting and finance
-human resource management
Retail Market Strategy
Retail Market Strategy?
A lot of terms exist.
Long Term Plan/Short Term Plan/Corporate Plan/Brand Plan/HR Plan
5 Year Plan
Customer Buying Behavior
Why do we segment the market?
Criteria for Evaluating Market Segments
A Viable Target Market?
Actionable similar needs/seek similar benefits?
Identifiable determine segment size/find them?
Chapter 1 Introduction of World of Retailing
1. What is retailing?
Retailing: a set of business activities that adds value to products and services sold to customers for
their personal or family use
Sales of products & sales of services
o E.g. haircut, d
Chapter 4 Customer Buying Behavior
1. The buying process
Buying process: the steps consumers go through when buying a product or service- begins when
customers recognize an unsatisfied need
Selecting a retailer and channel:
Recognize needs-> search for in
Chapter 3 Multichannel Retailing
1. Multi-channel retailer
Retail channel: the way a retailer sells and delivers merchandise and services to its customers
The most common channel used by retailer is store
Non store channel: internet, mobile, direct mail
Chapter 5 Retail Market Strategy
1. What is retail strategy?
*Retail strategy: identifying (1) the retailers target market, (2) the format and resources the retailer
plans to use to satisfy the markets needs, (3) the base on which the retailer plans to bu
MKTG - 4250
University of Missouri Trulaske College of Business
Spring 2016 Tuesday/Thursday
Section 3 #59882, 11:00AM, Cornell 40
Section 1 #59923, 12:30PM, Cornell 40
Section 2 #59881, 2:00PM, Cornell 40
Don Meyer, M.B.A.
Marketing 4250 Final Paper
May 9, 2016
I definitely feel lucky to have worked with the people I did through out the
semester in Retail Marketing. I dont think I could have had a better randomly
assigned group. There are not many bad thi
Managing the Merchandise
Process by which a retailer offers the correct
quantity of the right merchandise in the right
place at the right time and meets the
companys financial goals.
Sense market trends