An Overview of Marketing

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Lamb, Hair, McDaniel
CHAPTER 15
Retailing
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Retailing
Retailing
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The Role of Retailing

• Over 1.6 million U.S. retailers employ more than
  24 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
  salesnearly 40 percent of the U.S. GDP
• Industry is dominated by a few giant
  organizations, such as Wal-Mart

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The Importance of Retailing
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Classification of Retail Operations
Ownership
Level of Service
Product Assortment
Price
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Classification of Ownership
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Level of Service
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Types of Stores and Their Characteristics
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Price
Gross Margin
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Types of Retail Operations
Department Stores
Specialty Stores
Supermarket
Drugstores
Convenience Stores
Discount Stores
Restaurants
Shopping
Distinctive Products
Food Products
Medications
High TurnoverGoods
Health and Beauty
Specialty Goods
Customer Service
Cosmetics
ScrambledMerchandising
Specialty
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Aldi An Example

• Started in 1976 in Iowa, ALDI is increasing its
  market presence as a discount grocer. Offering a
  slim 1,400 products as ALDI select brands, the
  chain is able to give consumers deep discounts
  through supplier deals and their no-frills
  approach.
• Products must meet national brand standards, but
  consumers purchase for up to 50 less.

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Nonstore Retailing
Nonstore Retailing
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Direct Retailing
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Types of Direct Marketing
Shop-at-home networks Online retailing
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Top E-Tailers by Sales Volume
America's Top Ten Retail Businesses America's Top Ten Retail Businesses America's Top Ten Retail Businesses
Rank Company Web Sales Volume (in billions)
1 Amazon.com Inc. 19.2
2 Staples Inc. 5.6
3 Dell Inc. 4.8
4 Office Depot Inc. 4.8
5 Apple Inc. 3.6
6 OfficeMax Inc. 3.1
7 Sears Holding Corp. 2.7
8 CDW Corp. 2.6
9 Newegg.com 2.1
10 Best Buy 2.0
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Franchising
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Largest U.S. Franchisors
Ranking varies from year to year Search in Google
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The Retailing Mix

• Product width and depth of assortment
• Place location and hours
• Promotion Advertising, publicity, and public
  relations
• Price
• Presentation
• Personnel

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Ch 15 Discussion Questions

1. Explain how various types of stores can be
   classified on the basis of four retail operations
   criteria.
2. Define and elaborate non-store retailing and
   franchising in a global economy.
3. Explain how we can develop a Retail Marketing
   Strategy.