2. What is a retailer?
The retailer is a series of businesses that contributes
value not only to the products but also the services
that are provided.
The retailer isn't just your typical Wal-Mart or
Target, it is also the businesses that provide services
to the consumers, such as, Redbox DVD kiosks,
Scentsy, and your local hotels.
3. How does it work?
Starts with the:
Manufacturer Wholesaler RETAILER
You (the consumer)
4. Retailer’s Activities
Vertical Integration
firms preform more than one set of responsibilities within
the channel and is responsible for operating its own
distribution warehouses.
Backward Integration
Retailers preform some wholesaling and manufacturing
activities such as overseeing and operating their
warehouses.
Forward Integrating
Manufactures assume retailing and wholesaling duties.
5. Backward and Forward
Integration
A good example of backward and forward
integration is Apple.
How Apple uses backward integration is they
over see the manufacturing of their products to
oversee the quality and quantity of outputs of their
products.
6. Forward Integration
How Apple uses forward integration is by opening
up their own retail Apple stores with certified and
trained employees that know the Apple world well.
7. Forward Integration
Apple’s strategy of using forward integration helps
the consumer world, you, by increasing our
knowledge about their products. By doing this they
increase the relationship between consumer and
product. Apple also provides services to their
products in select stores nationwide.
8. Vertical Integration
Definition: firms preform more than one set of
responsibilities within the channel and is responsible
for operating its own distribution warehouses.
Such as……
9. Vertical Integration
The Buckle has some of its own manufacturing
clothing companies that designs exclusively for the
Buckle and no one else.
These manufacturers include: Daytrip, Crash and
Burn, Rock Revival and so much more.
10. Retailing is Important
Not only are the manufactures and wholesalers
important but the retailers strive to make consumer’s
lives easier.
Think of it this way: What if you had to go to several
different locations just to get milk, eggs, and bread?
Do you want to go to the farm to get milk and a
different farm to get eggs and than back to the
bakery for some bread? I don’t.
