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.