Retailing

1
Retailing
11
Prepared by Deborah Baker Texas Christian
UniversityRevised byDr. R. BaurAgricultural
Technical Institute
chapter
2
Chapter 10 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. 10. Channels decisions in global
markets. 11. Distribution in service
organizations.
10
chapter
3
Chapter 11 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.

11
chapter
4
Learning Objectives (continued)
5. Define franchising and describe its two basic
forms. 6. List the major tasks involved in
developing a retail marketing strategy.
11
7. Discuss the challenges of expanding retailing
operations into global markets. 8. Describe
future trends in retailing.
chapter
5
Retailing
358
Learning Objective
Discuss the importance of retailing in U.S.
economy.
1
All the activities directly related to the sale
of goods and services to the ultimate consumer
for personal, non-business use.
6
The Role of Retailing
358
Learning Objective
Discuss the importance of retailing in U.S.
economy.
1

• Retailing is one of the largest employers( 1 out
  of 5 workers 20 of work force)
• Retailers ring up almost a third 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

7
358
Learning Objective
Explain the dimensions by which retailers can be
classified
2
1. Independent Retailers
3. Franchises
2. Chain Stores
FREELANDERS
BUELHERS
8
B. Level of Service
Learning Objective
Explain the dimensions by which retailers can be
classified
2
358
Self Service
Full Service
Discount stores
DOLLAR GENERAL
Factory outlets Warehouse clubs
Exclusive stores
SAKS
Department Stores
Kohls
9
C. Product Assortment
359
Learning Objective
Explain the dimensions by which retailers can be
classified
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
10
D. Price Gross Margin
360
Learning Objective
Explain the dimensions by which retailers can be
classified
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
11
Major Types of Retail Opera-tions
361
Learning Objective
Describe the major types of retail operations.
3
A. Department Stores
PENNEYS
SEARS
B. Specialty Stores
WALDEN BOOKS
C. Supermarkets
GIANT EAGLE
D. Drugstores
CVS
E. Convenience Stores
DAIRY MART
F. Restaurants
BOB EVANS
G. Discount Stores
GENERAL
12
364
Learning Objective
Describe the major types of retail operations.
3
1. Full-Line Discounters
MYERS
WAL-MART
2. Discount Specialty Stores
Categories of Discount Stores
TOYS-R-US
BEST-BUY
3. Warehouse Clubs
SAMS CLUB
4. Off-Price Discount Retailers
BIG LOTS
ODD LOTS
13
Mass Merchandising
363
Learning Objective
Describe the major types of retail operations.
0
3
Scrambled Merchandising
Retailing strategy using moderate to low prices
on large quantities of merchandise and lower
service to stimulate high turnover of products.
The tendency to offer a wide variety of
nontraditional goods and services under one roof.
14
365
Learning Objective
Describe the major types of retail operations.
0
3
Hypermarket
Supercenter
A large retail store combining a supermarket
and a full-line discount store.
Retail store combining groceries general
merchandise goods with a wide range of services.
PHOTO PROCESSINGVISION CAREHAIR SALON
200,000 TO300,000 FT2
15
Learning Objective
Discuss non-store retailing
369
4
0
A. Automatic Vending
6 MIL MACHINES
16
Learning Objective
Discuss non-store retailing
369
4
0
1. Door-to-Door
3. Home Sales Parties
2. Office-to Office
17
369
Learning Objective
Discuss non-store retailing
0
4
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
2. On-Line Retailing
18
Learning Objective
374
Define franchising describe its basic forms
0
5
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.
19
Learning Objective
List major tasks involved in developing a retail
marketing strategy.
376
0
6
A. Demographics
STEP 1 Define Select a Target Market
B. Geographics
C. Psychographics
TargetMarket
20
Learning Objective
List major tasks involved in developing a retail
marketing strategy.
377
0
6
A. Product
F. Personnel
B. Promotion
STEP 2 Choose the Retailing Mix
TargetMarket
C. Place
E. Presentation
D. Price
21
A. Product Offering
List major tasks involved in developing a retail
marketing strategy.
377
Learning Objective
6
The mix of products offered to the consumer by
the retailer also called the product assortment
or merchandise mix.
22
B. Retail Promotion Strategy
List major tasks involved in developing a retail
marketing strategy.
379
Learning Objective
6
Retail Promotion Strategy
1. Advertising
2. Public Relations
3. Publicity
4. Sales Promotion
23
C. The Proper Place
List major tasks involved in developing a retail
marketing strategy.
380
Learning Objective
6

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

24
List major tasks involved in developing a retail
marketing strategy.
380
Learning Objective
6
Location Decisions
Freestanding Store
Mall
Shopping Center
GROUP OF STORES,ANCHOR STORES,ENCLOSED
TRACTORDEALERSHIP
GROUP OF STORES,ANCHOR STORES
OUTDOORSGARDENSHOP
25
Shopping Center Mall Locations
List major tasks involved in developing a retail
marketing strategy.
380
Learning Objective
6

• 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

26
D. Price
List major tasks involved in developing a retail
marketing strategy.
383
Learning Objective
6
High Price
Low Price
Good Value
Quality Image
CADILLAC
DOLLAR GENERAL
27
E. Presentation of the Retail Store
List major tasks involved in developing a retail
marketing strategy.
383
Learning Objective
6
Factors in Creation of a Stores Atmosphere
Employee Type Density
NUMBER ATTITUDE
Merchandise Type Density
ISLE WIDTH HT
Fixture Type Density
CHROME VS WOOD
Sound
PAGING
Odors
CANDLE STORE
Visual Factors
COLOR
28
F. Personnel and Customer Service
List major tasks involved in developing a retail
marketing strategy.
386
Learning Objective
6
Trading Up
Two Common SellingTechniques
BUY MORE FEATURES
BAIT SWITCH
Suggestive Selling
WITH CHEESE?
MAKE A BIGGIE?
29
Global Retailing
Discuss the challenges of expanding retailing
operations into global markets.
386
Learning Objective
7
4 OUT OF WORLDS 10 LARGEST RETAILERS ARE
USCOMPANIES WITH WAL-MART BEING NUMBER ONE
Reasons for Global Expansion
A. Spread of communication and mass media
C. Growth potential in underserved markets
B. Lowering of trade barriers and tariffs
CHINA
INTERNET
NAFTA
30
Discuss the challenges of expanding retailing
operations into global markets.
388
Learning Objective
7
Market Size Economics
Factors Used to Analyze Global Retail Markets
Infrastructure Distribution
Competition
Operations
Financial Tax Reporting
Merchandise Acceptability
Partnering Capability
31
Discuss the challenges of expanding retailing
operations into global markets.
Learning Objective
7
Secure DomesticPosition
Prerequisites forGoing Global
Long-TermPerspective
Consistent Global andCorporateStrategies
32
Learning Objective
389
Describe future trends in retailing.
8
A. Entertainment
COUCHES _at_ BARNES NOBLE
B. Convenience and Efficiency
CHILD CARE _at_ BUEHLERS
C. Customer Management
1. CUSTOMER RELATIONSHIP MARKETING2. LOYALITY
PROGRAM LEGGS3. CLIENTELING CUSTOMER
PREFERENCES
33
Chapter 11 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. Challenges of expanding retailing operations
  into global markets.
• 8. Future trends in retailing.

11
chapter
34
NEXT TOPIC

• PART FOUR
• CHAPTER 12
• INTEGRATED MARKET COMMUNICATIONS