Retailing

1
Retailing
CHAPTER 13
2
Learning Outcomes

• Discuss the importance of retailing in the U.S.
  economy
• Explain the dimensions by which retailers can be
  classified Describe the major types of retail
  operations

LOI
LO2
LO3
3
Learning Outcomes

• Discuss nonstore retailing techniques
• Define franchising and describe its two basic
  forms
• List the major tasks involved in developing a
  retail marketing strategy
• Describe new developments in retailing

LO4
LO5
LO6
LO7
4
The Role of Retailing
LOI
Discuss the importance of retailing in the U.S.
economy
5
The Role of Retailing
LOI
6
The Role of Retailing
LOI

• Over 1 million U.S. retailers employ more than 15
  million people
• Retailers account for 11.6 percent of U.S.
  employment
• Retailing accounts for 13 percent of U.S.
  businesses
• Retailers ring up almost 4 trillion in
  sales--nearly 40 percent of the U.S. GDP
• Industry is dominated by a few giant
  organizations, such as Wal-Mart

7
REVIEW LEARNING OUTCOMEThe Importance of
Retailing
LOI
8
Classifying Retailers
LO2
Explain the dimensions by which retailers can
be classified
9
Classification of Retail Operations
LO2
10
Classification of Ownership
LO2
11
Level of Service
LO2
12
Types of Stores and Their Characteristics
LO2
13
Price
LO2
The amount of money the retailer makes as a
percentage of sales after the cost of goods sold
is subtracted.
14
Major Types of Retail Operations
LO3
Describe the major types of retail operations
15
Major Types of Retail Operations
LO3
16
Categories of Discount Stores
LO3
17
Discount Stores
LO3
Retailing strategy using moderate to low prices
on large quantities of merchandise and lower
service to stimulate high turnover of products.
18
Discount Stores
LO3
19
Specialty Discount Stores
LO3
Specialty discount stores that heavily dominate
their narrow merchandise segment.
20
REVIEW LEARNING OUTCOMETypes of Retail Operations
LO3
21
Nonstore Retailing
LO4
Discuss nonstore retailing techniques
22
Nonstore Retailing
LO4
23
Direct Retailing
LO4
24
Types of Direct Marketing
LO4
Shop-at-home networks On-line retailing
25
REVIEW LEARNING OUTCOMENonstore Retailing
Techniques
LO4
26
Franchising
LO5
Define franchising and describe its two basic
forms
27
Basic Forms of Franchising
LO5
28
Franchising
LO5
29
Largest U.S. Franchisors

• McDonalds
• Southland
• Subway
• Burger King
• KFC
• Pizza Hut
• RadioShack
• Taco Bell
• Dairy Queen
• Hooters
• Jasons Deli
• Marble Slab
• Quiznos Sub

LO5
SOURCE http//www.franchise.org, January 2006.
30
Retail Marketing Strategy
LO6
List the major tasks involved in developing a
retail marketing strategy
31
Retail Marketing Strategy
LO6
32
Defining a Target Market
LO6
33
Biz Flix
LO6
Mans Favorite Sport
33
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Choosing the Retailing Mix
LO6
35
The Retailing Mix
LO6
36
Choosing the Retailing Mix
LO6
The mix of products offered to the consumer by
the retailer also called the product assortment
or merchandise mix.
37
Retail Promotion Strategy
LO6
38
The Proper Location
LO6
Choosing a Community
Choosing a Site
39
Important Factors for Site Choice
LO6

• Neighborhood socioeconomics
• Traffic flows
• Land costs
• Zoning regulations
• Public transportation
• Sites visibility, parking, entrances and
  exits, accessibility, and safety
• Fit with other stores

40
Shopping Center and Mall Locations
LO6

• Design attracts shoppers
• Activities and anchor stores draw customers
• Ample parking
• Unified image
• Sharing of common area expenses

• Expensive leases
• Failure of common promotion efforts
• Lease restrictions
• Hours of operation
• Anchor store domination
• Direct competitors
• Consumer time limits

41
Retail Prices
LO6
High Price
Low Price
Quality Image
Good ValueSingle Price PointEDLP
42
Presentation of the Retail Store
LO6
The overall impression conveyed by a stores
physical layout, décor, and surroundings
43
Presentation of the Retail Store
LO6
44
Personnel and Customer Service
LO6
Increase market share among existing customers
Create new products for present markets
45
Customer Service for On-Line Retailers
LO6
46
REVIEW LEARNING OUTCOMEDeveloping a Retail
Marketing Strategy
LO6
47
New Developments in Retailing
LO7
Describe new developments in retailing
48
New Developments in Retailing
LO7