Retailing

1
Retailing
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Prepared by Deborah Baker Texas Christian
UniversityRevised byDr. R. BaurAgricultural
Technical Institute
chapter
2
Chapter 11 Review
1. Explain mkting channel why it is
needed. 2. Types of channel intermediaries and
describe their functions and activities. 3.
Channel structures for consumer B2B 4. Supply
chain mgt its benefits. 5. Issues influencing
channel strategy. 6. Channel leadership,
conflict, and partnering 7. Components of the
supply chain. 8. Discuss balancing logistics
service cost. 9. New tech trends in supply
chain mgt. 11. Distribution in service
organizations
11
chapter
3
Chapter 12 Learning Objectives

• 1. Discuss the importance of retailing in the
  U.S. economy.
• 2. Explain how retailers can be classified.
• Describe the major types of retail operations.
• Discuss nonstore retailing techniques.

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• Define franchising describe its 2 basic forms.
• 6. List the major tasks involved in developing a
  retail marketing strategy.

chapter
7. Describe future trends in retailing.
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Retailing
Learning Objective
Discuss The Importance Of Retailing In U.S.
Economy.
360
12-1
All the activities directly related to the sale
of goods and services to the ultimate consumer
for personal, non-business use.
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The Role of Retailing
Learning Objective
360
Discuss The Importance Of Retailing In U.S.
Economy.
12-1
I million retailers employ 15 million people(12
of work force) Retailers ring up 40 of the U.S.
GDP Industry is dominated by a few giant
organizations, such as Wal-Mart 90 Employ lt 20
People 95 Operate 1 Store
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Learning Objective
Explain Dimensions By Which Retailers Can Be
Classified
361
12-2
A. Classification of Ownership
1. Independent Retailers
3. Franchises
2. Chain Stores
Local Florists
Old Hardware
BUELHERS
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B. Level of Service
Learning Objective
Explain Dimensions By Which Retailers Can Be
Classified
361
12-2
Self Service
Full Service
Discount stores
DOLLAR GENERAL
Factory outlets Warehouse clubs
Exclusive stores
SAKS
Department Stores
Kohls
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C. Product Assortment
Learning Objective
Explain Dimensions By Which Retailers Can Be
Classified
361
12-2
Type of Retailer
Service Level
Assort- ment
Mod Hi-High
Department Store
Broad
Specialty Store
High
Narrow
Supermarket
Low
Broad
Convenience Store
Low
Med-Narrow
Drugstore
Low-Mod
Medium
Full-line Discounter
Mod-Low
Med-Broad
Specialty Discounter
Mod-Low
Med-Broad
Warehouse Clubs
Low
Broad
Off-price Retailer
Low
Med-Narrow
Restaurant
Low-High
Med-Narrow
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D. Price Gross Margin
Learning Objective
Explain Dimensions By Which Retailers Can Be
Classified
361
12-2
Type of Retailer
Price
GrossMargin
Mod High
Department Store
Mod-High
Specialty Store
High
Mod-High
Low
Moderate
Supermarket
Mod High
Convenience Store
Mod High
Low
Drugstore
Moderate
Full-line Discounter
Mod Low
Mod Low
Specialty Discounter
Mod Low
Mod Lo-low
Warehouse Clubs
Low
Low-lower
Off-price Retailer
Low
Low
Low-High
Restaurant
Low-High
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Major Types Of Retail Operations
Learning Objective
Describe The Major Types Of Retail Operations.
362
12-3
Penneys
A. Department Stores
Sears
Purchases Made Within Dept Headed By Buyer
B. Specialty Stores
Walden Books
Narrower Lines Of Merchandise, But Deeper
C. Supermarkets
Giant Eagle
Kroger
Large Self Service Retailer Specializing In Food
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Learning Objective
Describe The Major Types Of Retail Operations.
364
12-3
D. Drugstores
Rite-aid
Cvs
Pharmacy Over The Counter Medications
E. Convenience Stores
Dairy Mart
7-11
Limited Line Of High Turnover Items _at_ A Higher
Price
F. Restaurants
Bob Evans
Most Entrepreneurial Competitive Of Businesses
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Learning Objective
Describe The Major Types Of Retail Operations.
365
12-3
G. Discount Stores
1. Full-line Discounters
Myers
Wal-mart
2. Discount Specialty Stores
Toys-r-us
Best-buy
Categories Of Discount Stores
Staples
Lowes
3. Warehouse Clubs
Sams Club
Costco
4. Off-price Discount Retailers
Big Lots
Odd Lots
H. Restaurants
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Mass Merchandising
Learning Objective
Describe The Major Types Of Retail Operations.
364
12-3
0
Scrambled Merchandising
A Wide Variety Of Nontraditional Goods Services
Under 1 One Roof.
Retailing Strategy Using Moderate To Low Prices
On Large Quantities Of Merchandise And Lower
Service To Stimulate High Turnover Of Products.
Retail Store Combining Groceries General
Merchandise Goods With A Wide Range Of Services.
Photo Finishing Vision Care Hair SalonFlorist
ShopPharmacyGasoline
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Learning Objective
Discuss Non-store Retailing
369
12-4
0
A. Automatic Vending
6 MIL MACHINES
SELLING 40 BILLION
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Learning Objective
Discuss Non-store Retailing
370
12-4
0
B. Direct Retailers sell products
1. Door-to-Door
3. Home Sales Parties
2. Office-to Office
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Learning Objective
Discuss Non-store Retailing
370
12-4
0
G. Discount Stores
1. Direct Mail
JUNK MAIL
C. Types of DirectMarketing
2. Catalogs Mail Order
LANDS END
L.L. BEAN
3. Telemarketing
OUTBOUND
INBOUND
4. Electronic Retailing
1. Shop-at-Home Networks
QVC
Egghead
2. On-Line Retailing
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Learning Objective
Define Franchising Describe Its Basic Forms
374
12-5
0
A. Product and Trade Name Franchising
Basic Formsof Franchising
Dealer agrees to sell certain products
provided by a manufacturer or wholesaler.
B. Business FormatFranchising
An ongoing business relationship between a
franchiser a franchisee.
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Learning Objective
376
12-6
A Retail Marketing Strategy
0
A. Demographics
STEP 1 Define Select a Target Market
B. Geographics
C. Psychographics
TargetMarket
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Learning Objective
377
12-6
A Retail Marketing Strategy
0
A. Product
F. Personnel
B. Promotion
STEP 2 Choose the Retailing Mix
TargetMarket
C. Place
E. Presentation
D. Price
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A. Product Offering
Learning Objective
377
12-6
A Retail Marketing Strategy
The mix of products offered to the consumer by
the retailer also called the product assortment
or merchandise mix.
A. Product Width
How Many Lines
How Many Lines
B. Product Depth
How Many Products in Each Line
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B. Retail Promotion Strategy
Learning Objective
378
12-6
A Retail Marketing Strategy
Goal
Position the Store in the Consumers Mind
Image
Retail Promotion Strategy
1. Advertising
2. Public Relations
3. Publicity
4. Sales Promotion
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C. The Proper Place
Learning Objective
379
12-6
A Retail Marketing Strategy
Location
Location
Location

• Large, long-term commitment of resources
• Location will affect future growth and
  profitability
• Local environment may change over time

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Learning Objective
379
12-6
A Retail Marketing Strategy
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Location Decisions
The Community
Specific Site
Freestanding Store
Mall
Shopping Center
Group Of Stores,Anchor Stores,Enclosed
TractorDealership
Group Of Stores,Anchor Stores
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Shopping Center Mall Locations
Learning Objective
380
12-6
A Retail Marketing Strategy

• Disadvantages
• Expensive leases
• Failure of common promotion efforts
• Lease restrictions
• Anchor store domination
• Direct competitors

• Advantages
• Design attracts shoppers
• Anchor stores draw customers
• Ample parking
• Unified image

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D. Price
Learning Objective
381
12-6
A Retail Marketing Strategy
High Price
Low Price
Good Value
Quality Image
Cadillac
Dollar General
Higher Prices With Sales
Every Day Low Prices
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E. Presentation Of Retail Store Atmosphere
Learning Objective
381
12-6
A Retail Marketing Strategy
Employee Type Density
Factors In Creation Of A Stores Atmosphere
Number Attitude
Merchandise Type Density
Isle Width Ht
Sears _at_ Christmas
Fixture Type Density
Chrome Vs Wood
Sound
Paging
Pace
Odors
Candle Store
Visual Factors
Color
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F. Personnel And Customer Service
Learning Objective
383
12-6
A Retail Marketing Strategy
Trading Up
Two Common SellingTechniques
Buy More Features
Bait Switch
Suggestive Selling
With Cheese?
Make A Biggie?
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Learning Objective
New Developments In Retailing
384
12-7
A. Entertainment
Couches _at_ Barnes Noble
B. Convenience Efficiency
Child Care _at_ Buehlers
Trends In Retailing
C. Interactivity
Self Check Out
C. M-commerce
Buying With Mobile Devices
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Chapter 12 Summary

• 1. Importance of retailing in the U.S. economy.
• 2. Classification of retailers can be
  classified.
• Major types of retail operations.
• 4. Non-store retailing techniques.
• 5. Franchising and its basic forms.
• 6. Major tasks in a retail marketing strategy.
• 7. New Developments Future trends in retailing.

12
chapter
30
Next Topic

• Part Four
• Chapter 12
• Integrated Market Communications