Retailing

1
Chapter 15

• Retailing

2
Retailing

• any business that sells products to consumers for
  their personal use.
• major connection to consumers
• retailers add value to products
• time utility
• place utility
• possession utility
• form utility.

3
Retail Marketing Strategies

• identify target market for store
• use demographic psychographic factors
• establish a retail position
• the retail marketing mix
• customer service policy
• retail image.

4
The Retail Marketing Mix

• product
• merchandise assortment
• product depth width
• price
• full price/sale price
• discount/off-price
• every-day-low-pricing.

5
The Retail Marketing Mix (continued)

• place
• location, location, location
• Surrounding population
• Mass transportation
• Parking
• size
• Cost.

6
The Retail Marketing Mix (continued)

• promotion
• advertising
• TV
• newspapers
• magazines
• out of home media
• in-store celebrations.

7
Customer Services

• to serve or not to serve
• self service to full service
• other services
• credit services
• return policy
• home delivery
• installation.

8
Retailer Position

• personality/image of retailer
• types of images
• conservative
• innovative
• fun
• luxury
• thrifty.

9
Categories of Retailing

• by ownership
• by product line
• by level of service
• by pricing strategy
• by size of store
• by location
• by method of operation.

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By Ownership

• independent retailers
• chain stores
• franchises.

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By Product line

• general merchandise
• general merchandise retailer/variety stores
• Woolworths
• department store (full service/full price)
• J.C. Penney
• Discount Retailers
• Offer brand names at lower prices (Target)
• Off-Price Retailers
• Heavily discounted products, few customer
  services
• warehouse clubs
• Sams Clubs.

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By Product Line (continued)

• limited lines
• catalogs
• specialty stores
• Single lines
• one product line, great depth
• Category Killers
• Home Depot.

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By Level of Service

• from full service to self service.

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By Pricing Strategy

• full price/sale retailers
• off-price retailers
• buy leftovers and sell cheap
• discount retailers
• lower than full price offer less services.

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By Size of Store

• supermarket
• warehouse store
• superstores
• hypermarkets.

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By Location

• location, location, location
• shopping center / anchor store
• convenience stores
• mall
• freestanding.

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By Method of Operation

• direct selling
• vending machines
• catalogs
• telemarketing
• television home shopping
• Internet.

18
Trends in Marketing

• mass customization
• individual department moods
• on-line services
• television shopping
• scanning yourself
• brand life style
• cyberplay.