Essay About Vertical Integration And Ralph Lauren

Marketing Retail Management Notes
Marketing Retail Management Notes
MKT 307
Wednesday, January 16, 2008
Retail can occur in more than just a store… (i.e., Doctor’s Office, Hair Salon, etc.)
As long as there is a monetary transaction; can be tangible or IN-tangible
What is RETAILING?
RETAILING is a set of business activities that adds value to the products and services sold to consumers for their personal or family use.
A RETAILER is a business that sells products and/or services to consumers por personal or family use.
THE CHANNEL OF DISTRIBUTION
Manufacturing
 Wholesaler  Retailer  Consumer
*In some cases, steps can be eliminated to save money & increase profit
Manufacturing, Wholesaling, and Retailing
Vertical Integration- firm performs more than one set of activities
Ex. Retailer invests in wholesaling or manufacturing
Backward Integration- retailer performs some distribution and manufacturing activities
Ex. JCPenny sells Arizona Jeans (Private Label)
Forward Integration- manufacturers undertake retailing activities
Ex. Ralph Lauren operates its own stores
Friday, January 18, 2008
*4 Functions of a Retailer*
Provides an assortment of products and services
Breaking Bulk Breaking down large shipments so products can be distributed accordingly
Holding Inventory to keep inventory ready for purchase; works hand-in-hand with “breaking bulk”
Providing services (lay-away, catalogs, cleanliness, etc.)
*These 4 functions create value for the retailers
Changes in the Retail Industry
Technology- self check-out, TV shopping, online shopping
Customer Service
Product Knowledge of sales associates
Store Hours
MKT 307
Retail Mgt
Wednesday, January 23, 2008
List of retail entrepreneurs among Forbes top 400
Walton Family