Retailing

1
Retailing
11
chapter
Prepared by Deborah Baker Texas Christian
University
2
Learning Objectives
1. Discuss the importance of retailing in the
U.S. economy. 2. Explain the dimensions by
which retailers can be classified. 3. Describe
the major types of retail operations.
11
chapter
3
Learning Objectives (continued)
4. Discuss nonstore retailing techniques. 5.
Define franchising and describe its two basic
forms. 6. List the major tasks involved in
developing a retail marketing strategy.
11
chapter
4
Learning Objectives (continued)
7. Discuss the challenges of expanding
retailing operations into global
markets. 8. Describe future trends in
retailing.
11
chapter
5
Learning Objective
1
Discuss the importance of retailing in the U.S.
economy.
6
Retailing
1
All the activities directly related to the sale
of goods and services to the ultimate consumer
for personal, non-business use.
7
The Role of Retailing
1

• Retailing is one of the largest employers
• Retailers ring up almost a third of the U.S. GDP
• Industry is dominated by a few giant
  organizations, such as Wal-Mart

8
Learning Objective
2
Explain the dimensions by which retailers can be
classified.
9
Classification of Retail Operations
2
10
Ownership
2
11
Level of Service
2
12
Classification Summary
2
13
Gross Margin
2
The amount of money the retailer makes as a
percentage of sales after the cost of goods sold
is subtracted.
14
Learning Objective
3
Describe the major types of retail operations.
15
Major Types of Retail Operations
3
16
Scrambled Merchandising
3
The tendency to offer a wide variety of
nontraditional goods and services under one roof.
17
Categories of Discount Stores
3
18
Mass Merchandising
3
Retailing strategy using moderate to low prices
on large quantities of merchandise and lower
service to stimulate high turnover of products.
19
Hypermarket and Supercenter
3
20
Learning Objective
4
Discuss nonstore retailing techniques.
21
Nonstore Retailing
4
22
Direct Retailing
4
23
Direct Marketing
4
24
Electronic Retailing
4
Types of Electronic Retailing
Shop-at-Home Networks
On-Line Retailing
25
Learning Objective
5
Define franchising and describe its two basic
forms.
26
Basic Forms of Franchising
5
27
Basic Forms of Franchising
5
28
Learning Objective
6
List the major tasks involved in developing a
retail marketing strategy.
29
Retail Marketing Strategy
6
Key Tasks in StrategicRetailing
Define Select a Target Market
Develop the Six Ps
30
Defining a Target Market
6
31
Choosing the Retailing Mix
6
STEP 2 Choose the Retailing Mix
32
The Retailing Mix
6
33
Product Offering
6
The mix of products offered to the consumer by
the retailer also called the product assortment
or merchandise mix.
34
Retail Promotion Strategy
6
35
The Proper Location
6

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

36
Location
6
37
Shopping Center and MallLocations
6

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

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

38
Price
6
Quality Image
39
Presentation of the Retail Store
6
40
Personnel and Customer Service
6
Two Common SellingTechniques
Trading Up
Suggestive Selling
41
Learning Objective
7
Discuss the challenges of expanding retailing
operations into global markets.
42
Global Retailing
7
43
Global Retailing
7
Market Size Economics
Factors Used to Analyze Global Retail Markets
Infrastructure Distribution
Competition
Operations
Financial Tax Reporting
Merchandise Acceptability
Partnering Capability
44
Global Retailing
7
45
Learning Objective
8
Describe future trends in retailing.
46
Trends in Retailing
8
47
Customer Management
8