MKT 320 Chapter 1

Course Information

• Course Title: MKT320: Retailing

• Institution: Canadian University Dubai

• Instructor: Dr. Jamid Ul Islam

• Contact: JAMID.ISLAM@CUD.AC.AE

Recommended Text

• Book Title: Retail Management: A Strategic Approach (13th Edition)

• Authors: Barry Berman, Joel R. Evans, Patrali Chatterjee

• Publisher: Pearson (2021)

Course Assessment

• Mid-Term Exam: 20%

• In-class Assignment 1 (Case studies, Quiz): 10%

• In-class Assignment 2 (Case studies, Quiz): 10%

• Final Exam: 30%

• Group Project Report: 20%

• Group Oral Presentations: 10%

Retailing Overview

• Definition: Retailing involves business activities of selling goods/services for personal, family, or household use.

• Examples: Supermarkets, clothing stores, online retailers, specialty stores.

Importance of Retailing

• Consumer Accessibility

  • Bridges the gap between producers and consumers.

  • Ensures product availability at the right time and place.

• Economic Contribution

  • Major contributor to GDP and employment.

  • Drives innovation in supply chain and customer experience.

• Customer Experience

  • Builds brand loyalty through personalized experiences.

  • Provides after-sales support/services.

• Industry Growth

  • Catalyst for the expansion of logistics, technology, marketing sectors.

Challenges in Retailing

• To Serve Customers and Earn Profit: Balance between customer satisfaction and profitability.

• Standing Out: Competing in a saturated market.

• Market Conditions: Economic issues such as high unemployment and consumer confidence affecting spending.

• Business Growth: Retaining loyal customers while expanding.

Retail Philosophy

• Understand and apply basic principles of retailing.

• Develop a systematic retail strategy to address retail challenges.

Retail Career Candidate Profile

• People Skills: Prioritize human interaction over technical knowledge.

• Flexibility: Adapt to busy schedules and varying shifts.

• Decisive: Ability to make quick decisions in high-pressure situations.

• Analytical Skills: Analyze sales data for strategic decision-making.

• Stamina: Endure physical/mental demands of retail jobs.

• Anger Management: Handle difficult customer interactions effectively.

Distribution Channels

• Typical Distribution Channel: Manufacturer → Wholesaler → Retailer → Final Consumer.

Retailers' Role in Sorting Process

• Retailers manage the flow of products from multiple manufacturers to consumers, assisting in brand selection.

Multi-Channel Retailing

• Definition: Retailers utilize multiple sales channels to provide a seamless shopping experience.

• Key Channels:

  • Websites/Mobile Apps: 24/7 shopping convenience.

  • Physical Stores: Allow product interaction and returns.

  • Catalogs: Reference for customer product information.

Case Study: Sara’s Sustainable Retail Journey

• Discussion Questions:

  • Strategies for integrating physical and online stores.

  • Competing as a small retailer in a larger market.

  • Role of UAE government initiatives in retail support.

Distribution Types

• Exclusive Distribution: Limited retailers for niche products (e.g., Rolex).

• Intensive Distribution: Broad distribution for convenience (e.g., Coca-Cola).

• Selective Distribution: Balanced reach and exclusivity (e.g., Apple).

Factors Affecting Retailing

• Small Average Sale: Necessitates high sales volume for revenue.

• Impulse Purchases: Influenced heavily by marketing strategies.

• Store Popularity: Attracts customers through brand strength.

Importance of Retail Strategy

• Guides overall business operations like product selection and marketing.

• Helps in defining target markets and value propositions.

Strategic Planning Steps

1. Define business type and orientation.

2. Set objectives for market position.

3. Identify target market attributes.

4. Develop a comprehensive business plan.

5. Implement an integrated strategy.

6. Evaluate and correct performance.

Class Activity

• Objective: Develop a retail strategy for a new outlet entering the UAE market.

  • Options: Sustainable Fashion, Smart Grocery Store, Kids’ Educational Store.

Conclusion

• Emphasize the holistic approach in retailing, focusing on customer relations, integrated strategies, and adapting to market trends.