Retailing

Credit: 1.00
Course Preface
Core Code: 37-01-00-00-240
Printable Version: Retailing (pdf)

Course Description
Retailing is a program that will prepare the student to operate businesses that sell, rent, or lease goods and services. This course will provide insight into the theory behind buying, storing, pricing, advertising, display, selling, financing, and other activities necessary for successful business operations. Students taking marketing classes should have the opportunity to participate in the DECA organization (student marketing leadership association). DECA related activities and curriculum may be used as an approved part of all marketing classes.

Students will also select and complete five (5) of the nine (9) performance objectives to fulfill the state requirement for performance.

Core Standards of the Course

Standard 08.0705-01
Students will understand the basic marketing and retail merchandising concepts.

• Recognize marketing functions completed in retailing.

• Know the components of the marketing mix and marketing segmentation.
• Describe how to segment a market using demographics, geographics, psychographics, and product benefits.

Standard 08.0705-02
Students will understand retail product management strategies and dimensions,including purchasing considerations.

• Recommend for simplicity either a school store or area small business.
• May also consider selecting a range of products to evaluate.

• Identify product mix components and strategies.
• Understand product mix dimensions: depth and width.
• Know the product life cycle and the marketing strategies used during each phase of the cycle.
• Analyze the product mix for a retail store, and recommend changes or improvements.

• Discuss buying methods used in small business and retail sales businesses.
• Interpret retail financing and reporting: quantity, discounts, and terms.
• Compare purchasing situations used in retailing.
• Understand the use of quantity discounts and net terms in distribution.

Standard 08.0705-03
Students will understand pricing policies and differentiate between different retail pricing systems.

• Suggest either a school store product order or a text-generated invoice.
• May also consider using an area small business.

• Discuss the factors that affect selling price.
• Know the difference between multiple and unit pricing.
• Calculate unit price, mark up, mark down and discounts.
• Recognize and explain pricing objectives of retail sales businesses.
• Analyze multiple costs as they affect retailing businesses.

• Define and explain break-even point.
• Calculating break-even amounts: unit and dollar amounts.
• Interpret fixed and variable costs in a retailing business. (M.E. – Ch. 36)
• Know definitions: market share, loss leader, elastic/inelastic demand, return on investment, and market position.
• Calculate return on investment.
• Determine profit margin on products purchased for resale.

• Define and explain pricing strategies: skimming, cost-plus, markup penetration, psychological, odd-even, prestige, multiple-unit, bundle, promotional, everyday low prices, discount, and price lining.
• Discuss psychological pricing factors as they affect retailing.
• Evaluate the use of even and odd pricing in retailing.

Standard 08.0705-04
Students will know and analyze distribution systems and inventory controls in the retail setting.

• Actual performance in a retail setting required.
• May also suggest a student employer/sales evaluation or job shadow opportunity.

• Know how distribution channels operate between producers and consumers.
• Define and discuss distribution channels, types, and terms.
• Correlate packaging decisions with distribution needs. (M.E. – Ch. 31)

• Discuss inventory control systems purposes and limitations.
• Identify types of inventory systems: perpetual, physical, and just-in-time.
• Evaluate the pros & cons of manual and computer inventory systems.
• Research and evaluate the value of Electronic Data Interchange (EDI) inventory systems in managing physical inventories.

• Determine the importance and purpose of a receiving system.
• Look at the activities in receiving, checking inventory, marking stock, and stocking inventory.
• Compare and contrast receiving systems of different retail businesses.

Standard 08.0705-05
Students will understand and develop retail-selling techniques used in business.

• Contact local county health department for references or county food handler’s permit.

• Discuss the steps and phases in the sales process.
• Understand the importance of suggestion and substitute selling in developing clientele.
• Determine the usefulness of suggestion selling and developing clientele.
• Practice effective suggestion and substitute selling techniques.

• Discuss how communication of a retail image affects a business.
• Determine the importance of relationship marketing to a retail sales business.
• Explain restaurant health and sanitation laws.

Standard 08.0705-06
Students will discuss the types and uses of promotion in retailing.

• Recommend for simplicity either a school store or area small business.
• May also consider selecting a range of products to promote.

• Identify the different types of retail promotions.
• Define: advertising, publicity, personal selling, and sales promotions as they relate to retailing.
• Evaluate promotional objectives and goals.
• Analyze the effective use of point-of-sale promotions.
• Understand the importance of good communications in a retail setting.

Standard 08.0705-07
Students will evaluate point-of-sale promotions, visual merchandising and retail store layout considerations.

• Student should create of a new small business store layout (blueprint) or assess and alter an existing sales floor.
• Consider using a school store or area small business.

• Student should construct an original merchandise display, shadow box, or point of sale display/promotion.

• Discuss the importance of store layout, lighting and colors in a retail business.
• Assess the importance of store image and location in a successful retail business.

• Define interior display types: store decorations, closed, open, architectural and point-of-purchase displays.
• Explain display purposes: special events, clearance sales, related merchandise, line of goods, and mass merchandise.
• Explain the four elements used in visual merchandising: store front, store layout, store interior, and interior displays.
• Evaluate a retail display and make recommendations for revision.

Standard 08.0705-08
Students will demonstrate their ability to conduct retail calculations and operate a point-of-sale terminal.

• Students may use a cash register or other money handling equipment.

• Explain and understand the operation of a point-of-sale terminal and other cash management operations.
• Identify methods of accurately counting change.
• Calculate tax and sales price.
• Prepare and verify a cash drawer.
• Determine currency amounts in coin rolls.

• Understand sales invoice processing and calculate merchandise discounts.
• Explain C.O.D., layaway and charge sale processes.
• Discuss business practices in handling merchandise returns and exchanges.