The Retail and its Environment

 

Chapter 1: An Introduction to Retailing

 

Questions

 

1. Explain how a retailer, as a marketing intermediary, makes the distribution of goods from a producer to a consumer more efficient.

 

They can make it more efficient by facilitating the distribution process. They can do this by providing points on which deliveries or merchandise are altered in their physical state and then they are made available to customers in convenient or cost-effective locations.

 

 

2. Retailing is not just an economic activity, but also one of significant social meaning. Discuss.

 

The retail industry gave people a place where to go and purchase things which is essential to their lives. It also gave people a place to converse and communicate with each other to share knowledge and information. Ever since we were little children, we were initiated to malls where we can buy in shopping stalls. When we then grew up, retail stores serves as reference points on which we learn about what is happening in the world and the opportunities it comes with. 

 

 

3. Explain what is meant by a vertical marketing system. Referring to Vignette 1.1 on Thorntons, identify the advantages and drawbacks of using vertically-integrated marketing channels. Can you think of any other retailers who have successfully used vertical integration?

 

Vertical marketing system means the usefulness in depicting a more realistic view of the retail industry in much developed economies.

The advantage of using vertically-integrated marketing channels is that they can cut out the wholesaler’s profit margin when they go directly to the producer. The demise of the wholesaler within the distribution channel is also a benefit for the retailers.

The drawback of using vertically-integrated marketing channels is that they have their works increasingly tenuous. All the works will also be done by the small and independent shopkeeper making it more tedious.

Yes, I can think of another retailer who successfully used vertical integration. This retailer is Mitsubishi.

 

 

4. To what extent do you think that multi-outlet retailers have become too powerful? What are the negative aspects of a highly concentrated retail industry?

 

It is to the extent when emerging markets are real opportunity for experienced retailers, especially if they are faced with high levels of retail provision. This will result to competition in their traditional markets.

The negative aspect of a highly concentrated retail industry is when important duty and quota restrictions are removed from the global economy; many retailers will view the world as their marketplace and make sourcing and outlet operation decisions on a set of criteria that are relevant across the globe.

 

 

 

5. Look through some retail trade journals and find out the types of positions that retail companies are recruiting for. How do these titles compare to those given in Table 1.1?

 

According to the retail trade journals I had looked through, there are some different types of positions that are being recruited by retail companies such as Assistant Manager, Cashier, Chef, Programmer Analyst and a lot more.

Compared to the titles given in Table 1.1, the types of positions that I had looked through some retail trade journals, is almost the same. Different positions are mentioned but different jobs and works are done individually.

 

 

6. Choose three retail sectors (such as grocery, clothing and DIY) and compare the levels of concentration within these sectors.

 

Based on the paper given to us, in the grocery sector, seven companies have a combined market share of 75 per cent while in the clothing sector, it is less concentrated compared to others, and finally the food sector would rise up and dominate in the future.