RETAILING Chapter 11 Essentials of Marketing LambHairMcDaniel, 2e

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RETAILINGChapter 11Essentials of
MarketingLamb/Hair/McDaniel, 2e

• MARKETING
• MKTG 3013

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The Role of Retailing

• Retailing is one of the largest employers in the
  world.
• Over half of retail sales are produced by less
  than 10 of retail establishments.
• Industry is dominated by a few giant
  organizations
• Wal-Mart
• Sears
• K-Mart
• JC Penney
• Dayton Hudson Corporation

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Classification of Retailers

• Ownership
• Independent Retailers
• Chain stores
• Franchises
• Level of Service
• Product Assortment
• Breadth and Depth of product mix
• Price
• Gross margin

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Major Types of Retailers

• Department Stores
• Specialty Stores
• Supermarkets
• Scrambled Merchandising carrying a wide variety
  of goods and services in a store
• Drugstores
• Convenience Stores

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Major Types of Retailers

• Discount Stores
• Mass Merchandising
• Hypermarkets
• Supercenters
• Category Killers
• Warehouse Clubs
• Off-Price Discount Retailers/Factory Outlets
• Restaurants

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Nonstore Retailing

• Automatic Vending
• Direct Retailing
• Direct Marketing
• Direct Mail
• Catalog and Mail Order
• Telemarketing
• Electronic Retailing
• Shop-at-Home Networks
• Online Retailing

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Franchising

• Benefits of Franchising
• Established product or service
• Technical training and assistance by franchiser
• Quality control standards by franchiser to ensure
  product uniformity
• Two Types
• Product and Trade Name
• Business Format

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Retail Marketing Strategy

• Define and Select Target Market
• Develop the Retailing Mix
• Sound vaguely familiar?
• Hint Think Marketing Strategy

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The Retailing Mix

• The Retailing Mix Includes six Ps Instead of
  Four
• Product
• Width and Depth of Product Assortment
• Private Label Brands
• Promotion
• Advertising, Publicity, Public Relations, Sales
  Promotion
• Place
• Freestanding Stores
• Shopping Centers
• Most Difficult Element to Change

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The Retailing Mix

• Price
• Everyday Low Pricing (EDLP)
• Personnel
• Trading up
• Suggestive Selling
• Presentation
• Atmosphere/Atmospherics
• Employee Type and Density
• Merchandise Type and Density
• Fixture Type and Density
• Sound
• Odors
• Visual Factors

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Global Retailing

• Reasons for Global Expansion
• Spread of Communication and Mass Media
• Lowering of Trade Barriers and Tariffs
• High Growth Potential in Untapped Markets

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Trends in Retailing

• Entertainment
• Convenience and Efficiency
• Customer Management
• Customer Relationship Marketing
• Loyalty Programs

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REVIEW

• Why are specialty stores such as Toys R Us,
  Circuit City, and Office Depot often called
  category killers?
• because they can destroy the profit potential for
  a category of merchandise for other retailers
• because they are located at stand alone sites
• because they offer an exclusive category of
  merchandise
• because they carry only fast-selling items

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REVIEW

• Minnies Makeup has sales representatives set up
  selling parties at offices where lots of women
  work. This company is using _____?
• direct response marketing
• vending
• personal marketing
• selling representation
• direct retailing