Summary
Summary MNM1504 Summarised Study Notes
- Course
- Mnm1504 (MNM1504)
- Institution
- University Of South Africa (Unisa)
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MNM1504NOTES
, MNM1504 – NOTES
RETAILING
Chapter 1
WHAT IS RETAILING?
Retailing is defined as the set of business activities that enhances the value of goods and
services that consumers purchase for their personal, family or household use. Retailing in
essence includes all activities involved in the selling of goods or services to consumers for
their personal use
Value creating activities
Providing assortment in one location – generally the retailer that I shop at provides a variety of goods that I can
purchase. For example, I can buy white, brown, whole-wheat or low GI bread, or whole, skim, fat free or low-fat milk.
Retailers have a wide selection of goods in different product lines that I can buy.
Bulk breaking to offer products in smaller quantities – when I go to a retailer I can generally buy one or a few loose
items, for example, buying a bag of chips or three slabs of chocolate. In order for goods to be easily transported, it would
make sense that they are bought in bulk and packaged in boxes. Therefore, in order to allow me to buy loose items, the
retailer opens the boxes and packs the loose items on the shelves so that I can easily grab what I want.
Holding inventory for consumers so that they can buy products when they need them – generally when I go to a retailer,
they have stock of what I usually purchase for my monthly groceries such as bread, milk and snacks. If they do not have
something on the shelves, I might ask one of the sales assistants to please check at the back if they might have stock.
Providing services in order to assist consumers and make it easier for them to purchase – sometimes when I go to a
different retailer to the one I usually go to, I may struggle to find products because I am unfamiliar with the store layout;
however, there are usually sales assistants who direct me to the right isle.
NON-STORE AND STORE RETAILING
Non-store retailing
,Direct mail or catalogues –Direct mail refers to a retailer carefully targeting potential consumers
with tailored offers of goods and services via mail or e-mail receiving a letter in the post requesting that
you purchase a raffle ticket in order to win a prize. These generally come with a paid-for envelope.
Direct sales – direct sales are when salespeople contact consumers face-to-face or via the
telephone. When it is
face-to-face, salespeople are able to demonstrate the goods to the consumer and provide
detailed information financial brokers usually arrange a meeting in order to discuss, face-to-face, the best way to
invest and save your money.
Vending machines – Vending machines are electronic machines that dispense goods to
consumers once money has
been paidat SupaQuick in Menlyn Retail, they have a vending machine that stocks some cool drinks and snacks.
Television shopping –Television shopping refers to home shopping where there are dedicated
channels to selling goods or
infomercials that are extended adverts that discuss or demonstrate the goods Verimark and
Glomail infomercials.
Online shopping – Online shopping is searching for and buying products or services from internet
retailers Zando and YuppieChef.
Mobile shopping refers to shopping using mobile devices over the web
Store retailing
Speciality retailers
• Speciality stores carry a narrow product line, but with a deep assortment, such as a
florist or bookstore
• Category killers are stores that are generally dominant in their category, offer a wide
assortment of products, and attract consumers with low prices
• Pharmacy stores focus on pharmaceutical, health and personal grooming products
, • Outlet factory stores sell manufacturers’ goods at a discounted price because they
either have an excess of merchandise, have cancelled orders, or have merchandise with
minor faults
• Pop-up stores appear in a short period of time in a temporary location (Elliot et al.,
2014:377). Pop-up stores allow brands to illustrate their merchandise in a different way in
order to get the consumers’ attention for a short period of time – ranging from four days to
five months
General merchandise retailers
• Convenience stores generally provide a small variety and assortment of merchandise;
however, they are situated at a convenient location and allow consumers to quickly purchase
products
• Discount stores generally offer lower prices and have high turnover and sales volume
• Department stores generally carry a variety of product lines and are generally
organised into distinct departments when displaying merchandise such as clothing,
homeware, cosmetics and kitchenware
• Supermarkets carry a wide assortment of food and non-food grocery items such as
meat, fresh produce, frozen foods, health and beauty products, and cleaning products just to
name a few
• A Hypermarket is the combination of a department store and supermarket that carries a
wide variety of product lines as well as grocery items
SERVICE RETAILING
Service retailers primarily sell services rather than merchandise as discussed in the
previous
Section
Types of service retailing
• Pure service retailers conduct business where there is no merchandise involved
• Owned-goods service retailers work on products that you own, such as appliances
and car repair services
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