Retailing  Manufacturers - Manufacturers are the ones

who are involved in production of goods with

 All the activities involved in selling goods or
the help of machines, labor and raw materials.
services to the final consumers for personal,
 Wholesaler - The wholesaler is the one who
non business uses.
purchases the goods from the manufacturers
 Most common form of doing business
and sells to the retailers in large numbers but at
Retail a lower price. A wholesaler never sells goods
directly to the end users.
 Involves the sale of goods from a single point  Retailer - A retailer comes at the end of the
(malls, markets, department stores etc) directly supply chain who sells the products in small
to the consumer in small quantities quantities to the end users as per their
Retailer requirement and need.
4. Relationship among retailers and their suppliers
 Buys goods or products in large quantities from a. Exclusive distribution, whereby
manufacturers or importers, either directly or suppliers make agreements with one or
through a wholesaler and then sells smaller a few retailers
quantities to the end-user b. intensive distribution, whereby
Philippines Employment suppliers sell through as many retailers
as possible.
 Services: Wholesale & Retail Trade data was c. Selective Distribution - suppliers sell
reported at 7,803.000 Person th in Jul 2018.. through a moderate number of
retailers.
Characteristics of Retailing
Retailing in the Philippines and Asia
1. Direct interaction
2. Large sale volume, less monetary value 1. The average amount of a sales transaction for
3. Customer service retailers is much less than for manufacturers.
4. Sales promotions 2. Factors differentiate retailing from other type of
5. Many retail outlets business
6. Location and layout are critical factors 3. The average amount of a sales transaction for
7. Employment opportunity to all age retailers is much less than for manufacturers.
4. Final consumers make many unplanned or
Reasons for Studying Retailing
impulse purchases.
1. Impact of retailing on the economy
Causes of impulse buying:
2. Philippines Retail Market Leaders
a. SM Investments Corp  Value in-store displays
b. SSI Group - Philippines' largest specialty  Attractive store layouts
retailer, with an established brand  Well-organized stores,
portfolio that includes some of the  Catalogs
world's most recognized.  Web-sites
c. Puregold Price Club Inc.
d. Metro Retail Sores Group, Inc. Frequently purchases:
e. Robinsons Retail Holdings, Inc.  Candy
3. Retails functions in Distribution  Cosmetics
 Retailers often act as the contact between  Snacks foods
manufacturers, wholesalers, and the consumer.  Magazines,
Retailers also complete transactions with  Other products due to: visibility, high-traffic
customers. areas in a store or websties
Special Characteristics Affecting Retailers  22% are between 18 to 24 years old,
 16% are between 35 to 44 years old, and
 17% are 45 years old or older.

Geographically,

 38% of all e-commerce transaction occur in

Metro Manila,
 9% in Cavite and Laguna,
 6% in Cebu,
 6% in Pampanga and Bulacan,
 3% in Davao, 3% in Rizal, 2% in Iloilo, and 2% in
Batangas.
 Philippines has a consumer-driven economy Mode of Payment:
where 72% of economic output is attributed to
private consumption.  Cash on delivery is still the preferred mode of
 More than 73 million Filipinos are registered payment comprising 67% of all transactions.
internet users and 99% of them are active on  followed by credit cards at 24%. Paypal has a 5%
one social media platform or another. share of payment transactions while G-Cash has
 average Filipino spends a nine hours and 45 a 2% share.
minutes on-line daily, three hours and 53  massive 79% of all e-commerce transactions are
minutes of which is spent browsing social media consummated over thesmartphone.
sites. Importance of Developing and applying retail strategy
 Prepandemic: statistics show that only 2% of
Filipino netizens have purchased goods or Six (6) steps in strategic planning:
services online, compared to 10% of Thais, 9%
1. Define the type of business
of people in Hong Kong and Taiwanese, 6% of
2. Set long-run and short-run objectives
Vietnamese, 5% of Singaporeans and
3. Determine the customer market to target
Indonesians, and 4% of Malaysians
4. Devise an overall, long-run plan
Reasons: 5. Implement an integrated strategy
6. Regularly evaluate performance and correct
 Skeptical divulging financial information online weaknesses or problems when observed
 Misgiving reliability of e-merchants
 Skeptical about spending money on net The Retailing Concept

During pandemic: 1. Customer orientation. The retailer determines

the attributes and needs of its customers and
 Big businesses like SM, Rustan’s double their endeavors to satisfy these needs to the fullest.
own e-commerce effort 2. Coordinated effort. The retailer integrates all
 Confidence and reliability of e-commerce grown plans and activities to maximize efficiency
steadily 3. Value driven. The retailer offers good value to
 In 2019 $3billion, in 2020 first six months customers,
doubled in terms of buyers and peso value 4. Goal orientation. The retailer sets goals and
purchases then uses its strategy to attain them
According to Businessworld

During pandemic:

 In terms of demographics, 72% of Filipino online THREE (3) ISSUES RELATED TO RETAILER’S
shoppers are female while 28% are male. PERFORMANCE
 Age-wise, 45% are between 25 to 35 years old,
 1. Total Retail Experience iv. Italy
 Adaptation of E-commerce (mobile devices) v. Great Britain
purchase anything, anytime and have it
Characteristics of Direct Marketing Customers
delivered .
 Price is a key factor, but engagement and 1. Married
how the shopping experience makes the 2. Upper middle class
customer feel. 3. 35-50 vears old
2. Customer Service 4. Desire convenience, unique items, good prices
 Identifiable but sometimes intangible,
activities undertaken in conjunction with Strategic Business Advantages of Direct Marketing
basic goods and services. 1. Reduced costs
3. Relationship Retailing 2. Lower prices
 Seek to establish and maintain long-term 3. Large geographic coverage
bonds with customers, rather than act if 4. Convenient to customers
each sales transaction is completely new 5. Ability to pinpoint customer segments
encounter. 6. Ability to eliminate sales tax for some
THE FOCUS AND FORMAT OF THE TEXT Various 7. Ability to supplement regular business without
approaches in Retail Management – Strategic additional outlets
Approach is to study the following: Strategic Business Limitations of Direct Marketing
1. Building relationship and strategic planning 1. Products often cannot be examined prior to
2. Retailing institutions –basis for their ownership purchase
3. Deals with consumer behavior and information 2. Costs may be underestimated
gathering 3. Response rates to catalogs under 10%
4. Element of Retailing Strategy 4. Clutter exists
5. Planning location 5. Long lead time required
6. Managing retail business 6. Industry reputation sometimes negative
7. Planning, handling and price merchandise
8. How Retailing strategy may be integrated, Data-Base Retailing
analyze and improved  Collection, storage, and usage of relevant
Nontraditional Retailing customer information
 Observation of 80 (output) -20 (Input) rule
 Nontraditional retailing also includes
formats that do not fit into store and Emerging Trends
nonstore-based categories: 1. Evolving activities
o Video kiosks 2. Changing customer lifestyles
o Airport retailing 3. Increasing competition
Direct Marketing 4. Increasing usage of dual distribution
channels
 Customer is initially exposed to a good or 5. Changing media roles, technological
service through a non-personal medium and advances, and global penetration
then orders by mail, phone, fax, or
computer Selection Factors by Customers
a. Annual U.S. sales exceed $425 billion 1. Companv reputation and image
(including the Web) 2. Ability to shop whenever consumer wants
b. Other leading countries include 3. Types of goods and services
i. Japan 4. Availability of toll-free phone number or
ii. France Web site for ordering
iii. Germany 5. credit card acceptance
 6. Speed of promised delivery time • convenience
7. Competitive prices • fun
8. Satisfaction with past purchases and good
Reasons NOT to Shop Online
return policy
 Lack of trust
• Fear
• Lack of security (credit card access)
• Lack of personal communication
• High shipping costs

Multichannel Retailing

 Seeks synergies among formats

Video Kiosks

 A video kiosk is a freestanding,

interactive, electronic computer
Media Selection terminal that displays products and
related information.
• Printed catalogs
 Freestanding Airport Retailing
• Direct-mail ads displays and brochures  Large group of prospective shoppers
• Ads or programs  Captive audience
• Inserts with in mass media monthly credit  Strong sales-per-square-foot of retail
• Banner ads or card and other hot links on the space
bills (statement Web stuffers)  Strong sales of gift and travel items
• Video kiosks  Difficulty in replenishment
Direct Selling  Longer operating hours
 Duty-free shopping possible
 Direct selling includes personal contact
with consumers in their homes REGULATORY CONSIDERATIONS

Vending Machines  Adhering to airport regulations and security

protocols is crucial for operational success.
 Vending machines are a cash- or card-
operated retailing format that sells UNIQUE CONSUMER DEMOGRAPHICS
goods and services.  Targeting travelers with specialized products,
Emergence of World Wide Web duty-free shopping, and exclusive items tailored
for their needs and preferences
 The World Wide Web (Web) is a way to
access information on the Internet. SECURITY AND TRUST

Web Strengths  Building secure payment gateways and fostering

consumer trust are critical for successful e-
 Using the Web commerce operations.
 Shopping
• information
 Online entertainment Retail marketing mix:
 selection
• interactive PRODUCT
 communications
• prices
  Product Diversification: Offering a diverse range
of products or services to cater to varied
customer needs and preferences.
 Innovation: Constantly innovating and
introducing new products or features to stay
competitive.

PRICE

 Dynamic Pricing: Utilizing dynamic pricing

strategies based on demand, seasonality, or
customer behavior to optimize revenue.
 Value Perception: Emphasizing value through
pricing, considering factors like quality,
exclusivity, or convenience.

PLACE

 Omnichannel Integration: Integrating multiple

channels seamlessly to provide a unified
shopping experience.
 Location Flexibility: Adapting to non-traditional
locations like pop-up stores or mobile retail
units to reach diverse consumer segments.

PROMOTION

 Digital Marketing: Leveraging digital platforms

for targeted advertising. influencer
collaborations, and engaging content creation.
 Personalization: Tailoring promotional activities
based on customer data and preferences for
higher engagement.